Though many investors have recently enjoyed mulling the "top picks for 2011" game, the beginning of a new calendar decade is a great opportunity to acknowledge the fact that a one-year mentality still isn't actually the long-term holding period suggested by the "buy and hold" philosophy.
To get you started on your "Top Picks for the 2010s," here's a look at some of the media's favorite ultra long-term ideas.
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Jim Jubak's famed long-term portfolio (with intended holding periods of 10 years or more) is a rolling 50 stocks, though the portfolio itself tends to be successful - market beating - over the long haul. Though he adds and subtracts five each year, one of the newcomers for 2011 looks really potent.
The fist one is Yingli Green Energy Holdings (NYSE:YGE) - one of China's many solar power plays. While the stock as well as the group have been and will continue to be volatile, Yingli Green Energy has been profitable on consistent revenue in its history. And, demand for solar is only going to grow going forward.
Jubak's other compelling name for the coming decade was already in his portfolio: Rayonier (NYSE:RYN). Though RYN is in the housing industry, it's at least stable, and from here there's little downside left to work with. Besides, Rayonier was a consistent earner when things were at their worst in 2008.
After a 10-Year Slumber
Wealth Daily's Editor Christian DeHaemer is big on most of the large cap tech names - the ones that thrived in the late 90s, but stalled over the last 10 years. Of all of them though, Cisco Systems (Nasdaq:CSCO) is a favorite.
The arguments for Cisco are pretty compelling, like $39 billion in cash versus a market cap of $115 billion, and impressively consistent earnings growth. And on a more philosophical note, with Y2K being the last time many companies have seriously upgraded their communication technology, the next 10 years could be quite strong.
The Stealth Smartphone Winner
Finally, Bespoke Investment Group's Paul Hickey has a great idea for getting around the confusion of trying to pick the winner of the smartphone and tablet race: own a company that produces the technology being used by many smartphone and tablet manufacturers.
That's ARM Holdings (Nasdaq:ARMH), a designer of semiconductors used in smartphones and other handheld computers. Indeed, Arm Holdings has been suggested as the next Intel (Nasdaq:INTC), as Microsoft (Nasdaq:MSFT) has opted to build Windows 8 to be capable of running on ARM processors. Given that ARM already owns 75% of the mobile processing market, further tablet and smartphone proliferation will be instant growth for the semiconductor maker. (For related reading, take a look at 10 Tips For The Successful Long-Term Investor.)
The Bottom Line
When it comes to investing for the long term, one year is not going to cut it. Do further research on the companies above and see if they may be the right stocks to carry you through to 2020.
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