3 Growth Stocks to Buy and Hold Forever
Investing in solid, well-run businesses can help to build wealth so that you're better prepared for retirement. My philosophy is simple: When it comes to growth stocks, just buy and own a business that can increase its revenue, profit, and cash flow over the long term. The stock market will recognize the quality of the business and grant it a higher share price over time, allowing you to enjoy increasing capital gains.
The question you may ask is, what are the right types of stocks to buy and hold over years or even decades? I like companies that demonstrate steady growth in their top and bottom lines as it implies that the business has an edge that enables it to continue growing.
These businesses should, ideally, be churning out lots of free cash flow (what's left of cash flow after capital investments) so they don't need to rely on banks to finance growth. By generating large amounts of free cash flow, these companies can pay an increasing dividend, thus helping you secure a larger stream of passive income.
Source Fool.com
