We know it seems like Fast Money moves at the speed of light. So we thought you’d appreciate it if we slowed things down a bit.
Following you’ll find Fast Money’s Slow Money trades – favorite stocks the traders would buy and hold for the next five years!
Posted 1 Oct 2009
Stock: Johnson & Johnson (JNJ):
This stock shows very stable earnings growth helped in large part by JNJ’s decision to buy Pfizer’s consumer brands business a few years ago. As a result, not only do they have a nice pipeline of new drugs, the company has a diversified business model, Pharmaceutical, Medical Devices & Diagnostics, and Consumer Products. With fair valuations and a stable dividend, JNJ makes a great stock for the long term.
Stock: Joy Global (JOYG)
In the near-term the company should benefit from the stimulus package, which has only just started to kick in. Then, when global recovery really gets a foothold, demand for iron ore, copper and coal should surge, which benefits this company even more.
Stock: Groupo Aeroportuario del Pacifico (PAC)
This company owns four of the top ten busiest airports in Mexico and every time a passenger departs they collect a fee. Also, they have a superb balance sheet and I expect to see growth in Mexico in the years ahead. All these factors should be bullish for this stock.
Stock: Ford (F)
Not only is the government behind the company, at least implicitly, they have emerged as a leaner and meaner auto maker as a result of the downturn. Also sales are up in Latin American and Asia which says to me that they’re in it to win it, all over the globe.
Stock: Exxon (XOM)
When John D. Rockefeller began this company he set an unbeatable strategy in motion that's still practiced today. And that strategy is year on year to provide returns that beat the competition. On top of that, the globe needs energy and Exxon will provide it. And they're also into bio-fuels which I like.
Stock: Visa (V)
Once the housing and the employment situation improves, Visa should take off as well. As we all know, economic downturns tend to be cyclical and we should come out of this one as well. Even though consumers have pulled back on spending, once their house values return to being worth more than what they owe on it -- and their job security is more intact -- they will get back to using credit cards with valuable points programs instead of cash.
Stock: Home Depot (HD)
While the correction in the housing market is currently putting pressure on sales, the company is taking advantage of this time of lower expectations to get their own house in order. New systems, better inventory and staffing practices plus sales incentives for associates are creating a culture that will not only thrive but continue to take market share from smaller competitors over the long run. As the consumer recovers, Home Depot should be a long-term winner.
Stocks: BHP and Vale
Emerging market miners BHP and Vale are Slow Money ‘Buys.’ As the emerging world continues to industrialize and modernize, they will provide the key elements needed for that growth. Vale is a pure iron ore play, and as well as a nickel play. BHP is the largest consolidated global miner.
With a 3 – 5 year holding period, not many companies make more sense than big blue. While the stock has increased dramatically from the March lows (and what stock hasn’t) valuations are still reasonable. The business is solid with great diversification by business line, geography and technology platform. Management has done an excellent job cutting costs during the recession and has prepared the business for long term success by taking advantage of the weakness of their competition.
International Business should drive top line growth faster than many of their U.S. peers and lead to margin expansion and growth in cash flow that should allow their multiple to at least stay the same, if not expand.
The stock will pullback with any decline in the equity markets and that decline would be an excellent opportunity to enter the stock for long term investors.
Stock: Veolia (VE)
This France-based company is the largest water utility in the world. Considering France consumes more water per capita than any other country (except the US) Veolia has a great base of stable operations. Also they’re expanding well into Asia, especially India. With the global thirst for clean water likely to intensify in coming years, Veolia should be at the forefront of developments and advances.
Stock: Teva Pharmaceuticals (TEVA)
Teva is the world's largest generic drug maker with 50% more Rx’s than their # 2 competitor. No matter what structure heath care reform takes, cheaper, quality generic drugs will be a part of it and Teva stands to benefit. 62% of Teva’s business comes from U.S. healthcare spending which is growing faster than GDP. And Teva will also be expanding its penetration into Japan and Europe.