3 Soaring Stocks to Hold for the Next 20 Years
It can be tough to buy a stock when its share price is soaring. As the stock gets more expensive, you must cough up more money to own a slice of the business. But there's normally a good reason why the stock's price is rising steadily, and it's usually tied to its business fundamentals.
Legendary investor Warren Buffett says that "if a business does well, the stock eventually follows." This simple statement contains some subtlety in that it's really saying that you should look at the business behind the stock because it's the success of the business that will drive its share price higher.
Once you understand this subtlety, it becomes clear how you ought to invest if you want to succeed in building your wealth. You want to focus on the solid growth stocks that represent businesses possessing catalysts or riding sustainable trends over years or even decades and can grow their revenue, profits, and cash flows over time. As business profits increase, investors will bid up the price of its shares, resulting in attractive capital gains. As the gains from these stocks multiply, you will eventually end up with a comfortable pot of money that you can draw on for your retirement.
Source Fool.com
