Like it or not, stocks are now so expensive that it’s virtually certain that equity returns on the S&P 500 will not be very attractive for the next decade. But if you hold great businesses and if you’re prepared to hold them for the long term, then there’s nothing to worry about, says Porter.
Selling shares too soon can be worse than buying poor-performing shares. No matter what happens in markets or the economy, great businesses tend to do well over the long run. It’s almost always a mistake to sell them.
In today’s Daily Journal, Porter explains his evolution as an investor – and why value investing is a dead end, and what’s replaced it for him.
On the news that Warren Buffett bought shares of Domino’s Pizza, Porter reveals a list of other Big Secret portfolio companies the legendary investor should invest in.
This company went from making addictive products that can kill you, to making addictive products that don’t kill you, and it’s generating huge margins doing so. It has all the ingredients of a high-conviction opportunity, when investors can make money with almost 100% certainty.
In a world of constant change, one thing remains steady: Americans love for chocolate. Today we focus on the ultimate “forever stock.” Backed up by more than a century of brand power, this business will remain as relevant for our children and grandchildren as it was for our parents and grandparents.