What stocks to invest in for 20 years?
In other words, the Rule of 20 suggests that markets may be fairly valued when the sum of the P/E ratio and the inflation rate equals 20. The stock market is deemed to be undervalued when the sum is below 20 and overvalued when the sum is above 20.
- Bajaj Finance Ltd. ...
- Titan Company Ltd. ...
- Varun Beverages Ltd. ...
- Cholamandalam Investment & Finance Company Ltd. ...
- Tube Investments of India Ltd. ...
- SRF Ltd. ...
- Solar Industries India Ltd. ...
- Persistent Systems Ltd.
Rank | Company | 20 Year Return |
---|---|---|
1 | Apple | 59,918% |
2 | Monster Beverage | 59,299% |
3 | NVIDIA | 28,712% |
4 | Intuitive Surgical | 18,221% |
Company | Industry |
---|---|
Infosys | IT Services |
HDFC Bank | Banking |
Reliance Industries | Conglomerate |
Bajaj Finance | Financial Services |
In other words, the Rule of 20 suggests that markets may be fairly valued when the sum of the P/E ratio and the inflation rate equals 20. The stock market is deemed to be undervalued when the sum is below 20 and overvalued when the sum is above 20.
Many retirement planners suggest using a more modest annual return of 6% when forecasting the long-term performance of a portfolio. At 6%, after 20 years the $200-a-month portfolio would be worth $93,070. After 40 years earning the same return, your model portfolio would be up to about $398,000.
- Shopify. Shopify has more than doubled investors' money in the past five years, and that is no guarantee it will do so again. ...
- Axsome Therapeutics. Over the past five years, Axsome Therapeutics has seen steady clinical progress on multiple fronts.
Stock | Forward price-to-earnings ratio (P/E) |
---|---|
Enphase Energy Inc. (ENPH) | 25.3 |
Microsoft Corp. (MSFT) | 30.0 |
Nvidia Corp. (NVDA) | 26.6 |
Tesla Inc. (TSLA) | 57.6 |
Warren Buffett's Berkshire Hathaway (BRK. A) commands the No. 1 position, with an impressive stock price of over half a million dollars.
S.No. | Name | CMP Rs. |
---|---|---|
1. | Guj. Themis Bio. | 369.30 |
2. | Refex Industries | 640.95 |
3. | Tanla Platforms | 855.95 |
4. | M K Exim India | 68.37 |
What stocks to buy and hold for 30 years?
- Apple (AAPL) ...
- Microsoft (MSFT) ...
- Alphabet (GOOGL) ...
- JPMorgan Chase & Co. ...
- Johnson & Johnson (JNJ) ...
- Berkshire Hathaway (BRK-B) ...
- Verizon (VZ) ...
- AT&T (T)
Company Stock | Market Cap (crore) | Profit Growth (CAGR) |
---|---|---|
HDFC Bank | ₹11,69,000 | 19.9% |
Hindustan Unilever | ₹6,04,408 | 12.4% |
Infosys | ₹6,79,000 | 8.9% |
Reliance Industries | ₹18,40,000 | 10.2% |
To make money in stocks, you must protect the money you already have. That brings us to the cardinal rule of selling. Always sell a stock it if falls 7%-8% below what you paid for it.
Key Takeaways
The 90/10 strategy calls for allocating 90% of your investment capital to low-cost S&P 500 index funds and the remaining 10% to short-term government bonds. Warren Buffett described the strategy in a 2013 letter to his company's shareholders.
What is the 3 5 7 rule in trading? A risk management principle known as the “3-5-7” rule in trading advises diversifying one's financial holdings to reduce risk. The 3% rule states that you should never risk more than 3% of your whole trading capital on a single deal.
The table below shows the present value (PV) of $3,000 in 20 years for interest rates from 2% to 30%. As you will see, the future value of $3,000 over 20 years can range from $4,457.84 to $570,148.91.
$3,000 X 12 months = $36,000 per year. $36,000 / 6% dividend yield = $600,000. On the other hand, if you're more risk-averse and prefer a portfolio yielding 2%, you'd need to invest $1.8 million to reach the $3,000 per month target: $3,000 X 12 months = $36,000 per year.
Too many people are paid a lot of money to tell investors that yields like that are impossible. But the truth is you can get a 9.5% yield today--and even more. But even at 9.5%, we're talking about a middle-class income of $4,000 per month on an investment of just a touch over $500K.
- 1) HDFC Bank. Market Cap: Rs.715984.46 Cr. PEG: 0.94. OPM: 57.16. ...
- 2) Indus Towers. Market Cap: Rs.56337.67 Cr. PEG: 0.40. ...
- 3) Divi's Lab. Market Cap: Rs.92648.47 Cr. PEG: 1.37. ...
- 4) Deepak Nitrite. Market Cap: Rs.25308.35 Cr. PEG: 0.27. ...
- 5) Ultratech Cement. Market Cap: Rs.150178.06 Cr. PEG: 0.91.
Company (ticker) | 5-Year Avg. Yearly EPS Forecast |
---|---|
Skechers U.S.A., Inc. (SKX) | 27.3% |
T-Mobile US, Inc. (TMUS) | 26.9% |
Meta Platforms, Inc. (META) | 26.0% |
Insulet Corporation (PODD) | 18.1% |
What stocks are going to skyrocket?
Growth Stock | Expected Change in Stock Price* |
---|---|
Tesla Inc. (TSLA) | 37.9% |
JPMorgan Chase & Co. (JPM) | 3.6% |
Mastercard Inc. (MA) | 15.9% |
Advanced Micro Devices Inc. (AMD) | 13.6% |
Now, let's consider how our calculations change if the time horizon is 10 years. If you are starting from scratch, you will need to invest about $4,757 at the end of every month for 10 years. Suppose you already have $100,000. Then you will only need $3,390 at the end of every month to become a millionaire in 10 years.
Dividend stocks are considered safer than high-growth stocks, because they pay cash dividends, helping to limit their volatility but not eliminating it. So dividend stocks will fluctuate with the market but may not fall as far when the market is depressed.
- Tesla. No company has a footing in as many massive market opportunities as Tesla (NASDAQ: TSLA). ...
- Nvidia. There's no question that Nvidia (NASDAQ: NVDA) has become the face of AI. ...
- Meta Platforms. ...
- Apple. ...
- Amazon.
Microsoft is the largest company in the world, with a market cap of $3.09 trillion. It's followed by Apple ($2.77 trillion), Nvidia ($2.06 trillion), Saudi Arabian Oil ($2.05 trillion), and Amazon ($1.85 trillion).