It’s a situation we all find ourselves in at some point in our investing careers. We are bound hand and foot by pirates, rowed out to the shore of an uncharted desert isle, and left stranded there, maybe forever. Then, as the boat rows away, one helpful pirate with a powerful satellite-uplink calls to us, “Hey, since you won’t have another chance for a while, do you want us to make any adjustments to your portfolio?”
So, what companies seem secure enough to prosper in the known current year, the unknown next year, the unknowable year-after-next, and even a few of the inconceivable years-after-that? What stocks will you be comfortable holding, knowing you can’t possibly sell your shares (or buy more of them) for what might be an age, an era, or perhaps even an eon?
Well, maybe the above situation isn’t quite as common as I implied, but the question of what stocks to buy in the event that the stock market was about to close, or we were going to be away from it, for the next five years is still an important one. Why? Well, according to Warren Buffer, the greatest investor of our era, or perhaps even eon, you should never by stock unless you intend, barring extraordinary circumstance, to hold it for at least five years. If you wouldn’t buy it before departing, perhaps for a decade, to a desert island, don’t buy it at all. Thinking on a longer timeline, it seems, focuses the mind towards asking the right questions about a company’s prospects.
Today’s list is of the five stocks that I believe most convincingly pass the desert island test