The Best Stocks for the Long Term
An article by Jeremy Siegel on Yahoo! Finance on April 20th, 2006 gives some savy investment advice. Get into some blue chips.
The table below lists the twenty best-performing of the original S&P 500 firms that have survived since the index was formed almost 50 years ago. If you were lucky enough to own a portfolio of these 20 stocks, you would have beaten the S&P 500 by more than 4.5% per year and seen your wealth grow eight times the level it would have grown to in the S&P 500...Interestingly, virtually all of these stocks, despite their history of remarkable returns, have reasonable P-E ratios today. The average forward looking P-E ratio of these twenty stocks is currently 16.33x, which is only one point higher than the S&P 500.