3 Unstoppable Investments Everyone Needs in Their Portfolio | Smart Change: Personal Finance
Do you just want to set it and forget it, so to speak? While this mindset is at the core of the buy-and-hold strategy, it can also be argued that it is oversimplified. Obviously, buying and holding is a long-term affair, but that doesn’t mean you should never check out these stocks.
However, some of the publicly traded companies there are so reliable regardless of economic background that they can be considered “unstoppable” for long-term investors. Here’s a closer look at three of them you might want to add to your portfolio while being cheaper than they were just a few months ago.
Pharmaceutical giant merck (NYSE: MRK) He never seemed to be working wholeheartedly on a COVID-19 vaccine and seemed happy to let competitors like Pfizer And Moderna Eat a cloak. And Merck’s meager effort on the coronavirus vaccine front was largely abandoned early last year when the company halted trials of its V590 and V591 vaccine candidates. the reason? lackluster efficacy. Given all of this, it’s no surprise that Merck is one of the few drug stocks that has underperformed over the better part of the past two years.
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Looking back, it may have been more useful than the responsibility Merck didn’t get into the deep waters of a COVID vaccine.
Although the pandemic has proven profitable for some drug names, this increase in revenue would not have been fully sustained. A significant amount of other research and development has been put on hold to focus on creating COVID vaccines. Now many of these companies’ pipelines are a year or more behind.
But not Merck. It has 77 unique Phase II trials underway and 29 Phase III programs. This is in addition to three drug approval applications currently being reviewed by regulators. Its pipeline also consists of several new uses for the miracle cancer-fighting drug Keytruda, which after first approval in 2018 expanded to a $17 billion annually franchise. However, there is still more growth in the cards.
By the way, the market is just beginning to discover all this. After nearly two years of tepid performance, Merck shares are now up more than 20% since the end of 2021. However, there is more gas left in the tank for this pharmaceutical device that has remained focused on its own bigger picture.
2. Procter & Gamble
Procter & Gamble Company (NYSE: PG) It is the name behind many of the brands beloved by consumers, such as Pampers diapers, Tide laundry detergent, and Bounty paper towels. Sure, loyalty to these brands is strong, but it’s not the only reason – or even the best reason – to own a piece of P&G.
Nor is it related to their ability to pass on higher costs to consumers. Although shoppers grumbled about the high prices they see while walking the aisles of stores, they still pay those prices. Procter’s fourth-quarter organic sales are up 10% year over year, which is fairly close to a 16% increase in costs for the goods it sold over the three-month period.
Instead, the biggest reason Procter & Gamble is unstoppable (and the reason you want to own this FMCG stock) is its sheer size and subsequent marketing budget. With revenues of $76 billion annually, this company is twice the size of any of its direct competitors and can promote its brands more aggressively than any of its competitors. Depending on the year, there is a good chance that P&G will be the largest single advertiser in the world in terms of total dollars spent on the effort. Don’t discount the importance of this kind of promotional firepower.
Finally, add Microsoft (NASDAQ: MSFT) To our list of unstoppable stocks that would be welcome additions to just about anyone’s portfolio.
Once you take a quick look at the stock chart, it will be easy to question the bullish argument. Like many of its tech peers, Microsoft’s shares are down more than 20% from their November highs and still appear to be heading lower. Also, given its age and sheer size, some investors are sure to claim the company as being computer-centric that has been watered down into irrelevance by the latest cutting-edge technologies such as cell phones.
If that’s what you’re thinking, take a closer look at the Microsoft that CEO Satya Nadella has shaped since taking office just over eight years ago. Cloud computing is a big part of its business for corporate data centers as well as consumers who want browser-based access to applications like Microsoft Word and Excel. Not only do these offerings mean the company is as relevant today as it was 25 years ago when the PC boom was just taking root, but they also mean that the software giant has a significant amount of recurring revenue. Meanwhile, Microsoft is forever working to expand its video game and digital advertising arm, further cementing its push beyond the Windows operating system.
It is not a slow-growing group of business ventures. Analysts call revenue growth of more than 18% this year and more than 14% next year, mostly because the company has evolved with the ever-changing field of technology.
Look for more of the same down the road, too. Until the world is ready to forego the use of smartphones, game consoles, the cloud, and the Internet, Microsoft has plenty of opportunities to connect with it.
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James Bromley has no position in any of the listed stocks. Motley Fool has and recommends positions at Microsoft. The Motley Fool recommends Moderna Inc. that the Motley Fool has a disclosure policy.