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Buy-And-Hold Stocks That Will Make You a Fortune Now and Forever

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Buy-And-Hold Stocks That Will Make You a Fortune Now and Forever 5 Buy-and-Hold Stocks That Will Make You a Fortune Now and Forever By Timothy Lutts, Cabot Wealth Network Why I Sent You This Free Report 5 Buy-and Hold Stocks That Will Make You a Fortune Now and Forever Dear Reader, If there is one reason that Warren Buffett, Benjamin Graham, Peter Lynch, John Templeton and John C. Bogle have become the richest and most successful investors in the world, this is it: They all identified great companies that stood directly in the path of growth, bought them, and then held them for the long term. It’s not fancy, but it works, and it eliminates a lot of risk. No longer do you have to worry about the ups and downs you see in the market daily. Because you’re in it for the long term, you no longer have to concern yourself with daily fluctuations, volatile market swings or flash crashes. My dad discovered that, too, 46 years ago, when he started Cabot Market Letter, now Cabot Growth Investor. As he told me long ago, “If you want to make money as an investor, then you want to invest in good stocks that are growing now and will continue to grow in the future.” That’s what we specialize in here at Cabot through our advisories. Sending you this report is our way of fulfilling my dad’s promise 46 years ago which is to bring our readers “the most profitable stocks on the planet” and to prove to you that buy-and-hold is one of the smartest, safest and most profitable ways to invest for your future. These five stocks have made many of our Cabot readers rich—all by simply buying and holding on to the stocks you’re about to read about here. If you can add them to your holdings now, you can begin to enjoy similar returns. Yours in pursuit of wisdom and wealth, Timothy Lutts, Chief Investment Strategist Cabot Wealth Network P.S. REMEMBER: On March 10, we are going to personally invite a handful of investors to receive unlimited access to nine of our market-beating advisories. As a result, you’ll never miss out on a long-term hold, money-doubling trade or high-yield opportunity again. You’ll begin to profit from Cabot Stock of the Week recommendations like Netflix (up 12,037%), Cabot Growth Investor recommendations like Amazon (up 1,200%), Cabot Emerging Markets Investor recommendations like ARM Holdings (up 662%), Cabot Top Ten Trader recommendations like Regeneron Pharmaceuticals (up 1,979%), and Wall Street’s Best Investments recommendations like Questcor (up 1,683%). -2- All while supplementing your holdings with the best, safest and highest-yielding income stocks and ETFs on the planet, delivered to you from Cabot Dividend Investor and Wall Street’s Best Dividend Stocks. What’s more, you’ll also be able to grab great shorter-term gains, as our Cabot Top Ten Trader members do … while taking advantage of tremendous turnaround opportunities like our Cabot Undervalued Stocks Advisor and Cabot Benjamin Graham Value Investor members do. All without your having to subscribe to nine separate advisories. So please be sure to look for it on March 10. Like your free subscription to Wall Street’s Best Daily, this invitation is also FREE, and comes without any obligation to purchase a thing. In the meantime, I urge you to not only read about our 5 Buy-and-Hold Stocks but also invest in them! By adding them to your portfolio and holding over the long term, you could secure your retirement for life. -3- 5 Buy-and-Hold Stocks That Will Make You a Fortune Now and Forever By Timothy Lutts, Chief Investment Strategist, Cabot Wealth Network When my father published the first Cabot investment advisory way back in 1970, his goal was to help readers become better investors by introducing them to high-potential growth stocks, and teaching them how to cut losses short while letting profits run. That original investment advisory, currently in its 47th year, is now titled Cabot Growth Investor, and ably managed by Mike Cintolo, Cabot’s Vice President of Investing. But there’s a whole world of investing strategies beyond growth investing, and Cabot over the years has expanded its offerings to readers by offering guidance on a wide variety of other investment strategies as well. And now, with our new Prime membership, we’re making it possible for readers get nine of these valuable advisories at one bargain price! This report highlights five growth companies, chosen from five distinct advisories, that I sincerely believe will be great buy-and-hold stocks (even for the rest of your life!)—if you have the patience. I suggest you read them all. Get a sense of the system(s) used by each advisor. See what makes sense to you. And then put your money to work, slowly and steadily. Remember, investing is not a sprint; it’s a marathon. 1. NetEase (NTES) from Cabot Emerging Markets Investor The investing world does not end at the U.S. border. In fact, you can find faster-growing countries and companies if you look overseas, particularly in emerging markets like China, Mexico, India, Turkey and Indonesia. Of course, with greater opportunity comes greater risk (there’s no free lunch), but if you can exercise proper risk control, you’ll find soaring profits in some of these stocks. International investing ace Paul Goodwin is your guide to these stocks and countries in Cabot Emerging Markets Investor. Paul’s readers bought NetEase (NTES) back in June and Paul continues to update them on the stock every week. Here’s some of what Paul has written about the stock. NetEase (NTES) NetEase (NTES) is one of our long-time favorites in the emerging markets space—a stock we’ve owned a handful of times in the past (mostly profitable trades), and one we continue coming back to as the stock resumes its longer-term advance. NetEase originally made a name for itself as one of China’s leading internet portals (providing news, chat, email, educational content and the like)—the “Yahoo of China” was its nickname among most investors, and the mid-2000s were excellent years for the company, with sales and earnings spiking and the stock getting institutional support for the first time. Today, the company continues to do a very good business in the general internet space, which includes email services (NetEase is China’s largest email provider with a whopping 860 million -4- registered addresses), online advertising (on its various free portals) and its e-commerce business (including entertainment and finance services). But the real growth driver at NetEase (accounting for 76% of total revenues) is the game business. The firm first began building this segment in a big way in the mid-2000s, and today it’s one of the leading PC and mobile game firms in China and the world as a whole. There’s a little bit of a “fashion” trend to the game industry; if a firm’s development efforts launch a few duds, the whole lineup can sag. But NetEase has proven to be among the best when it comes to its lineup of games—it offers many self-developed and major licensed PC games (including the World of Warcraft franchise from Activision Blizzard), and in recent years, it’s made a huge push into mobile games (they now account for 63% of game revenue), many of them the multiplayer ventures that have proven addictive (and lucrative!). Today NetEase offers more than 90 mobile games, and expects a steady stream of new releases this year, including potential hits New Ghost and Fantasy Westward Journey: Warriors. Plus, it’s worth noting that there’s something of a network effect in the game industry. The more successful a company is, the more buzz it garners for its games, the more money it has for R&D to develop new games, the more data/feedback it has to predict what gamers will pay for, and the more willing other developers are to partner with them. In the second quarter of this year, NetEase’s revenues grew 83% while earnings jumped 80%, and analysts expect more great growth ahead. As for the stock, NTES has made great progress over time, but that progress has been interspersed by more corrections and dead periods than you can count (thus our history of buying and selling the stock). The good news, though, is that when it gets going, the stock tends to trend for many weeks if not months. So, to take advantage of NetEase’s growth, you can be a buyer and seller from time to time, trying in particular to buy after major corrections—or you can choose to hold some of the stock “forever,” and look back perhaps 10 years later and see how far you’ve come. 2. Tesla Motors (TSLA) from Cabot Stock of the Week To understand Cabot Stock of the Week’s recommendation of Tesla, you first need to understand the advisory’s system. In short, there isn’t one—there are seven! That’s because every week, I choose the most attractive stock from seven other Cabot advisories, paying attention to the overall investing environment, short-term opportunities and portfolio diversification. Tesla Motors was originally recommend by Cabot Top Ten Trader, because the chart was attractive, and Cabot Stock of the Week repeated that recommendation in December 2011, before the firm had even produced its first Model S electric-powered luxury sedan. Here’s an update.
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