I don’t believe in buying shares to hold for a short period. Even the best stocks can experience periods of prolonged price weakness, according to broader economic conditions and market sentiment. Investing guru famously said that you should “ .
” This way, an investor has a chance to eliminate the impact of market volatility on their eventual returns. Circumstances can change, and a stock that looks attractive one day may become a ‘dog’ within a few years. Sudden regulatory changes may put a utilities stock’s profitability in danger, for instance.
Evolving consumer tastes could damage a luxury goods stock’s sales. However, the best strategy is to buy shares that — at the time of purchase — look like they’re set to reign for the next decade or more. With this in mind, here is one of my favourites from the FTSE 100.
Fallen angel Drinks giant ‘s ( ) has struggled of late as weak consumer spending — and especially in its Latin America and Caribbean region — has smacked sales volumes. A bigger challenge over the long term could be rising levels of ‘teetotalism’ in the West. In the UK, for instance, some 27% of adults now consume zero alcohol.
That’s up from 13% two years ago, according to ad agency Red Brick Road. But despite this trend, I still bought Diageo shares in 2020. And then again in 2023.
And I plan to hold them for the rest of my life. Geographical reach One reason is because of the spectacular profits it could make from fast-growing emer.