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10 Top Stocks for the Long-Term Investor

Fast Money's 'Slow Money' Trades

Does the market seem almost schizophrenic to you? One day euphoria sends stocks surging, then the very next day fear sends investors running for the exits. Sick of it? We are, too. Here are our latest “slow money” trades compliments of the Fast Money gang, as well as other top money pros. These are stocks to buy and hold for the long term, no matter what the market does tomorrow. So, what are the traders’ top buy-and-hold picks? Click ahead to find out!
Photo: CNBC

Does the market seem almost schizophrenic to you? One day euphoria sends stocks surging, then the very next day fear sends investors running for the exits. Sick of it? We are, too.

Here are our latest “slow money” trades compliments of the "Fast Money" gang, as well as other top trading pros. These are stocks to buy and hold for the long term, no matter what the market does tomorrow.

So, what are the traders’ top buy-and-hold picks? Click ahead to find out!

By Lee Brodie
Posted 6 December 2011

Microsoft (MSFT)

Trader: Brian Kelly, Founder, Shelter Harbor Capital Yes, the stock has bounced around between $23 a share and $27 a share for the past year, but the Fast Money pros see plenty of reasons for Mr. Softy to finally break out. “They’re finally developing a strategy in the lucrative mobile market,” says Brian Kelly. Also the profit potential of Windows 8 upgrades is substantial considering 450 million PCs currently run Windows 7, Windows Visa, and Windows XP. For more on this call,
Photo: Getty Images

Trader: Brian Kelly, Founder, Shelter Harbor Capital

Yes, the stock has bounced around between $23 a share and $27 a share for the past year, but the Fast Money pros see plenty of reasons for Mr. Softy to finally break out. “They’re finally developing a strategy in the lucrative mobile market,” says Brian Kelly. Also, the profit potential of Windows 8 upgrades is substantial considering 450 million PCs currently run Windows 7, Windows Visa, and Windows XP. For more on this call, check out the video.

Walt Disney (DIS)

Trader: Joe Terranova, Chief Market Strategist, Virtus Investment Partners Although CEO Big Iger announced plans to step down in 2015, Joe Terranova thinks Walt Disney should still be a core holding in any portfolio. Looking at Disney’s latest earnings report, profits increased 30 percent year-over-year, with gains in advertising boosting the bottom line. The appeal of Disney characters also continues to benefit its theme parks, despite the rough economy, with the parks and resorts group
Photo: Getty Images

Trader: Joe Terranova, Chief Market Strategist, Virtus Investment Partners

Although CEO Big Iger announced plans to step down in 2015, Joe Terranova thinks Walt Disney should still be a core holding in any portfolio. Looking at Disney’s latest earnings report, profits increased 30 percent year-over-year, with gains in advertising boosting the bottom line. The appeal of Disney characters also continues to benefit its theme parks, despite the rough economy, with the parks and resorts group reporting a revenue gain of 11 percent to $3.1 billion in the last quarter.

Philip Morris (PM)

Traders: Karen Finerman, President, Metropolitan Capital; Patty Edwards, Principal, Trutina Financial Both Karen Finerman and Patty Edwards say smoking is bad for your health, "Even in a bad economy, cigarette smoking isn't something people give up," says Edwards. As the international arm of Marlboro, Virginia Slims, and other name brands, Philip Morris is currently experiencing strong growth in Japan. The sales trends in both emerging markets and the rest of Asia are also very strong.
Photo: Nikita2706 | Wikimedia Commons

Traders: Karen Finerman, President, Metropolitan Capital; Patty Edwards, Principal, Trutina Financial

Both Karen Finerman and Patty Edwards say smoking is bad for your health, but good for your portfolio."Even in a bad economy, cigarette smoking isn't something people give up," says Edwards. The international arm of the company's Marlboro, Virginia Slims, and other name brands, is currently experiencing strong growth in Japan. The sales trends in both emerging markets and the rest of Asia are also very strong.

JPMorgan Chase (JPM)

Trader: Karen Finerman, President, Metropolitan Capital Although the financial-services sector faces a slew of challenges, ranging from increased regulation to European contagion, traders still think JPMorgan Chase is an attractive long-term stock as a “best of breed” play. “It’s a premiere franchise with an extremely smart management,” says Karen Finerman. showed business lending increased sharply and fewer customers were late paying bills; both should be positive catalysts.
Photo: Getty Images

Trader: Karen Finerman, President, Metropolitan Capital

Although the financial-services sector faces a slew of challenges, ranging from increased regulation to European contagion, traders still think JPMorgan Chase is an attractive long-term stock as a “best of breed” play. “It’s a premiere franchise with an extremely smart management,” says Karen Finerman. JPMorgan’s October earningsshowed business lending increased sharply and fewer customers were late paying bills; both should be positive catalysts.

Kimberly-Clark (KMB)

Trader: Patty Edwards, Principal, Trutina Financial ”Diapers, toilet paper, tissues, they’re the staples of life!” says trader Patty Edwards. Even in the worst economy people have to – well, you know. Of course, there’s the argument that people will trade down to store brands, but “They make some of the store brands too!” And, with a dividend yield of about 4 percent, this stock yields more than U.S. Treasurys.
Photo: Camille Tokerud | The Image Bank | Getty Images

Trader: Patty Edwards, Principal, Trutina Financial

”Diapers, toilet paper, tissues, they’re the staples of life!” says trader Patty Edwards. Even in the worst economy people have to — well, you know. Of course, there’s the argument that people will trade down to store brands, but Edwards says Kimberly-Clark has a secret.“They make some of the store brands too!” And, with a dividend yield of about 4 percent, this stock yields more than U.S. Treasurys.

Dominion Resources (D)

Traders: Steve Grasso, Director of Institutional Sales Trading, Stuart Frankel; Brian Kelly, Founder, Shelter Harbor Capital If you have a very low tolerance for risk, traders Steve Grasso and Brian Kelly suggest putting money to work in a utility, such as Virginia-based Dominion Resources. People will always need power and the stock yields more than 4 percent. “And talk about too big too fail — if a utility were to go down, I'm all but certain the government would step in!”
Photo: Dom.com

Traders: Steve Grasso, Director of Institutional Sales Trading, Stuart Frankel; Brian Kelly, Founder, Shelter Harbor Capital

If you have a very low tolerance for risk, traders Steve Grasso and Brian Kelly suggest putting money to work in a utility, such as Virginia-based Dominion Resources. People will always need power and the stock yields more than 4 percent. “And talk about too big too fail — if a utility were to go down, I'm all but certain the government would step in!” says Kelly.

Intel (INTC)

Trader: Brian Kelly, Founder, Shelter Harbor Capital Once tethered to the stalling PC market, Intel has become very aggressive in the race to establish dominance in the rapidly growing mobile computing market. The latest chatter on the trading floor suggests the firm’s trademarked Ultrabook at the International Consumer Electronics Show in 2012. Meant to combine the best features of tablets and laptops, Intel expects Ultrabooks to account for 40 percent of the consumer PC market by the end of ne
Photo: Getty Images

Trader: Brian Kelly, Founder, Shelter Harbor Capital

Once tethered to the stalling PC market, Intel has become very aggressive in the race to establish dominance in the rapidly growing mobile computing market. The latest chatter on the trading floor suggests the firm’s trademarked Ultrabook could be the hot itemat the International Consumer Electronics Show in 2012. Meant to combine the best features of tablets and laptops, Intel expects Ultrabooks to account for 40 percent of the consumer PC market by the end of next year. If you’re a more sophisticated investor, Brian Kelly suggests going long the stock and using the dividend to buy a put option for what he calls “a free look.”

PulteGroup (PHM)

Traders: Guy Adami, Managing Director, Drakon Capital; Jon Najarian, Co-Founder, optionMONSTER.com ”Early is wrong,” says trader Guy Adami, but the market may be going overboard as it “prices in pessimism about housing.” OptionMonster above other names in the space for two reasons: “It’s been muscling its way through its 100-day moving average, and there’s speculation about consolidation in the industry.” Also, he thinks housing bottoms in 2011.
Photo: Getty Images

Traders: Guy Adami, Managing Director, Drakon Capital; Jon Najarian, Co-Founder, optionMONSTER.com

”Early is wrong,” says trader Guy Adami, but the market may be going overboard as it “prices in pessimism about housing.” OptionMonster Jon Najarian likes PulteGroupabove other names in the space for two reasons: “It’s been muscling its way through its 100-day moving average, and there’s speculation about consolidation in the industry.” Also, he thinks housing bottoms in 2011.

Wells Fargo (WFC)

Traders: Mike Mayo, Banking Analyst, CLSA, an affliate of Credit Agricole Securities; Dick Bove, Senior Vice President of Equity Research, Rochdale SecuritiesAlthough he’s bearish on most of the sector had an “outperform” rating on this stock at the time of writing. ”They’re less exposed to Europe and they have an efficiency program that can generate an earnings boost,” he says. Analyst Dick Bove is also bullish. ”Wells Fargo is one of the best banks in the United States and buying this stock at
Photo: Getty Images

Traders: Mike Mayo, Banking Analyst, CLSA, an affliate of Credit Agricole Securities; Dick Bove, Senior Vice President of Equity Research, Rochdale Securities

Although he’s bearish on most of the sector CLSA banking analyst Mike Mayohad an “outperform” rating on this stock at the time of writing. ”They’re less exposed to Europe and they have an efficiency program that can generate an earnings boost,” he says. Analyst Dick Bove is also bullish. ”Wells Fargo is one of the best banks in the United States and buying this stock at current prices makes an enormous amount of sense," he says.

Cisco Systems (CSCO)

Trader: Joe Terranova, Chief Market Strategist, Virtus Investment Partners About a year ago, Cisco Systems lost its bellwether status, however our pros think the tide may be turning for this tech titan. In November, the company forecast revenue and earnings above Wall Street expectations, with cuts and consolidation starting to pay off. Also speculation suggests and Terranova thinks he’s determined to turn the company around before he steps down, if only to protect his legacy.
Photo: Getty Images

Trader: Joe Terranova, Chief Market Strategist, Virtus Investment Partners

About a year ago, Cisco Systems lost its bellwether status, however our pros think the tide may be turning for this tech titan. In November, the company forecast revenue and earnings above Wall Street expectations, with cuts and consolidation starting to pay off. Also speculation suggests CEO John Chambers may soon retireand Terranova thinks he’s determined to turn the company around before he steps down, if only to protect his legacy.

Fast Money's 'Slow Money' Trades

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