Got $5,000? Buy and Hold These 3 Value Stocks for Years
When most people think of so-called "value stocks," they're referring to large, mature businesses that trade at relative discounts to their intrinsic value. These are also typically steady stocks that often (but not always) have substantial capital returns programs (think dividends and share repurchases) to effectively supplement share price appreciation for investors.
But I've always held a somewhat subjective view of exactly what it means to be a value stock. We're all value investors when you really think about it; every investor strives to buy stocks for less than they're truly worth. In my experience, that aim doesn't always directly equate to finding stocks that trade at "cheap" valuations as measured by traditional metrics like price-to-earnings (P/E), price-to-sales (P/S), or price-to-book (P/B) ratios.
More than anything, I believe value stocks must trade at a significant discount to their long-term potential worth. With that in mind, if you're an investor with, let's say, $5,000 to put to work, here are three "value stocks" I think are worth buying and holding for at least the next several years.
Source Fool.com
