In these article we have covered Today’s 1990 Coca-Cola like Stocks.
In 1990 Coca-Cola stock was trading in between 4 and 5 dollars and before pandemic it was trading around 60 dollars. Have you ever seen the dividends? According to me Coca-Cola has given so much dividends than most of the other stocks in the world. Again, there may be one or two I might have missed but, everyone knows what Coca-Cola is. And you know what, its just a soda water product. And of course, as time passed company introduced lot of other flavors too. But if you observe carefully the fundamental among all these products is same that it is carbonated-flavored water. Imagine it’s 2040 instead of 2022.
Now think that you invested money that you got 20 years before in some selected stocks, and the stocks you bought 20 years earlier, you never sold them. You followed buy and hold approach and ignored the noise. And it turns out to be your winning bet. You successfully multiplied your money.
Now, let’s get back to 2020 and think which stocks you will buy now that will be a big winner in 2040. Which stocks you are going to own that will shine during the journey of 20 years that is from 2020 to 2040?
This is a great exercise for investors to perform because it gets you thinking about which stocks you should invest in now. Don’t worry, even, if you had a hard time coming up with specific stocks. Here are three great ones to buy and hold for decades. I will be discussing three stocks today that have potential to be like 1990 Coca-Cola. But, remember instead of blindly investing in the stocks that we are going to discus today I would advice you people to do your own research and find out whether these stocks do really have potential to become 19990’s Coca-Cola. Because, I don’t want to push or force you to do something. I will discuss the things but it is totally your decision to decide whether to follow it or not.
First stock that I will be discussing is pharma stock and it’s been in market since many decades and that stock is Abbott Laboratories.
Abbott Laboratories isn’t the kind of stock you can buy and hold for only decades — you can hold this one for centuries. The company was founded way back in 1888. Today, Abbott ranks as one of the biggest healthcare companies in the world and holds a market-leading position in all of its core businesses. Imagine company found a century before and that company is leader in its business even after 132 years and most important thing is that company also survived world war 2 and pandemic of 1920. This clearly indicates how strong this company is.
And top of that, you can probably count on enjoying juicy dividend payments if you buy and hold Abbott over the long run. The company has paid a dividend every year since 1924. It’s increased its dividend pay-out for 48 consecutive years, making it a member of the elite group of stocks known as Dividend Aristocrats. And remember all big investors love dividend stocks a lot.
Next stock that I will be discussing is inclined towards innovation and robotics.
Speaking of innovation, you’re not going to find many companies with a more impressive track record than Intuitive Surgical. It is a company who is master at developing robots who can do surgery with super precision and accuracy. A few decades ago, robotic surgery only existed in science fiction. Thanks to Intuitive, it’s now commonplace. You will say commonplace? Yes, look at the data more than 7.2 million procedures have been performed using Intuitive Surgical’s da Vinci robotic surgical system to date. There are now nearly 5,900 da Vinci systems installed across the world. Those numbers are really impressive. Like its just a starting of new revolution and world accepted it really fast. Whenever world accepts some company’s product right at the beginning of revolution you know that company is has got something good.
Sure, the COVID-19 pandemic is currently impacting Intuitive’s revenue and earnings, with delays for non-urgent surgical procedures. However, this is only a temporary issue for the company. Intuitive’s long-term prospects remain very bright. You can think its all robotic. World wants innovation that will save time and efforts and Intuitive helping the world by developing what they want.
Over the next few decades, there will be many more elderly people in the U.S. and in other countries, due to demographic trends. Take example of Italy, Finland, Greece, Germany. Right now, they have highest percentage of adult and old people.
This should drive demand for the kinds of procedures that are already ideally suited for robotic assistance. But Intuitive’s continual innovation will almost certainly expand the types of procedures where its robotic technology can be used, as well. So, from my point of view, look for the company that keep turning science fiction into reality for a long time to come.
Now next stock I will be discussing is already familiar with everyone and that is PayPal.
Let’s go back to imagining you’re in 2040. You’re probably going to use cash a lot less often then you do now. The shift from cash to digital payments is one of the major unstoppable trends that should only accelerate over the next couple of decades. Several companies will benefit from this trend, but arguably none more so than PayPal Holdings. And to drive the company in perfect way you have got Peter Thiel. You might not have heard but this guy also bought honey chrome extension. This indicates he has got eye on what is actually going in market. So, we can trust him.
PayPal has been known for years for offering a convenient way to pay for online purchases. This remains an important and growing part of the company’s business. And this pandemic already fired up the PayPal revenue as more and more people are opting for online shopping. I mean before pandemic also people were using PayPal but this pandemic almost forced people to go online and shop and whenever it comes to payment you won’t find much secure, trustable and efficient payment gateway than PayPal. And when you talk about its reach PayPal works in almost every country except north Korea and its not PayPal’s fault. You know North Korea does not allow outside business to run. I mean it kind of closed country. And PayPal is the most favourite choice people when user wants to transfer money from one country to another where most of the wallet are not reachable.
However, PayPal’s Venmo peer-to-peer payment app is its fastest growth driver now. Look for Venmo to become an increasingly key business for the company in the coming years. It isn’t profitable just yet, but PayPal CEO Dan Schulman said in the company’s Q3 conference call that Venmo should generate profits by 2022. And its fine almost every product takes time. Even one product of Google which is known as Google map was not monetized by Google. So, investors waited and then at the right time Google monetized it and now they are ripping the profits. So, once that PayPal product starts generating revenue then its definitely going to boost the stock value of paypal directly benefitting the investors like us.
The company is also expanding into the brick-and-mortar retail market. That means they are on the way of Walmart. And this is again a good indication for investors as it is jumping on something that is not online. They are trying to deep root their business in offline world also. It now supports contact-free payments via the PayPal and Venmo apps where users can simply scan a QR code. And main thing about paypal is it is not only technological revolution but it is related to finance field. And finance is never going to go down even in uncertain conditions. Over the next decade or so, PayPal should be a much bigger player in both online and offline financial transactions. And it should also be a big winner for investors who buy and hold this hot fintech stock.
So, these are some of my thoughts on this stock. And best thing about this stock is there are long term means buy and hold kind of stock which you can invest in and can sit back and relax. They are kind of future proof as one is related to pharma then technology and finance. And these fields are those who are not outcome of any stock market bubble. These industries have proven themselves of the period of time that they can withstand in uncertain conditions and still give profits. Even Abott was giving dividends in world war 2. Can you imagine its world war happening and you are enjoying dividends. So, I would once again recommend that you do your research and give second thought on what I discussed today and go ahead with your decision.