3 reasons why I’d buy stocks now and aim to hold them forever

first_img See all posts by Peter Stephens Enter Your Email Address Simply click below to discover how you can take advantage of this. Peter Stephens | Friday, 5th February, 2021 Our 6 ‘Best Buys Now’ Shares Are you on the lookout for UK growth stocks?If so, get this FREE no-strings report now.While it’s available: you’ll discover what we think is a top growth stock for the decade ahead.And the performance of this company really is stunning.In 2019, it returned £150million to shareholders through buybacks and dividends.We believe its financial position is about as solid as anything we’ve seen.Since 2016, annual revenues increased 31%In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259Operating cash flow is up 47%. (Even its operating margins are rising every year!)Quite simply, we believe it’s a fantastic Foolish growth pick.What’s more, it deserves your attention today.So please don’t wait another moment. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Get the full details on this £5 stock now – while your report is free. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. A strategy to buy stocks now and hold them over the long run has been relatively successful in the past. This does not mean it will necessarily be profitable in future. However, giving holdings with time to deliver on their potential could be a shrewd move.Furthermore, the potential for a long-term economic recovery could lift the performances of many businesses in the coming years. This could lead to rising stock market valuations from which short-term investors do not fully benefit.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Buying stocks today to benefit from a potential economic recoveryAn economic recovery from today’s challenges cannot be guaranteed. However, the past performance of the economy suggests that it is likely to take place in the coming years. After all, no recession or depression has ever been permanent in nature. A plan to buy stocks now could be a means of benefiting from a potential improvement in operating conditions for many businesses.Of course, some companies and sectors may respond more positively than others to an economic recovery. Therefore, it is important to reduce risk through diversifying across a wide range of companies. In doing so, it may be possible to harness a long-term recovery that also leads to improving investor sentiment and rising stock prices.Providing time to deliver on strategy changesThe coronavirus pandemic has caused many companies to experience disruption and change within their industries. For example, retailers may need to shift additional resources online. Similarly, hospitality companies may need to service consumers at home to an increasingly large extent.A plan to buy stocks and hold them for the long run provides businesses with the opportunity to put into effect their revised strategies. They may take time to develop and implement. They may take even longer to make a positive impact on financial performance. Clearly, there is no guarantee that strategy change will lead to a rising share price. But, allowing a company the time to grow could be a prudent move.A short-term focus may cause additional challengesA long-term focus when buying stocks may also be beneficial because of the potential for high volatility in the stock market. Even though there has been a market rally since the 2020 market crash, an uncertain economic outlook may mean there is scope for further ups and downs in future.This could negatively impact both long- and short-term investors. However, investors with a long-term focus may be able to capitalise on it through buying shares when they trade at lower prices. They may deliver on the aim of experiencing a recovery over the long term. Furthermore, they may be less concerned by the performance of their portfolios in the short run, in terms of experiencing paper losses, if they are focused on valuations over a long time horizon. 3 reasons why I’d buy stocks now and aim to hold them forever FREE REPORT: Why this £5 stock could be set to surge Image source: Getty Images last_img read more

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