3 Stocks That Can Make You Rich
05/25/08 Categories: Stock Investing and
Investments
Everyone wonders what will happen to
their portfolio during these uncertain times. Should I sell off and
sit on the sidelines with cash? Should I start buying stocks now
for when the economy picks back up? Or should I wait it out and
see?
The latter is probably only a good idea when you are focused on a longer term horizon. Waiting and holding will almost always payoff if you are looking 15 to 20 years into the future. Sitting on the sidelines with cash is a safe but cautious approach. Many investors are doing just this and are completely fine with no return.
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If you want returns, and substantial returns at that, you must seek out the best investments for the near to mid-term future. These stocks you want to hold for 2-5 years, and you can hold them for longer if they are still fundamentally strong after 5 years.
Here are 3 Stocks That Can Make You Rich:
1. General Electric (GE)- GE recently posted lower than expected earnings which Jeff Immelt mostly blamed on the current economic status and troubles with GE's financial business segments. This is more than likely a cyclical price decline, and the stock could realistically bring you 15% returns by the end of 2008. Also, CEO Jeff Immelt is under the gun for the next couple of quarters to perform or he could be ousted. Either way, if Immelt improves the company improves, and if he gets fired then the new CEO has a good chance of bringing more to GE's bottom line. Another great part of GE is the alternative energy pipeline, a part of the Eco-magination realm. GE has invested billions into alternative energy production including wind turbines, which will become increasingly significant for energy independence and sustainablility. It's a win-win.
2. Merrill Lynch (MER)- Although the financials will probably not come back to 2006-2007 values until well into 2009, that allows for a lot of buying up of financial stocks for you and institutional investors. Merrill Lynch is fundamentally sound. They will probably come up as a top performer in the next 2-3 years allowing the stock to double or more. Mother Merrill won't fail you, especially if you are looking further than just 2008.
3. PetroBras (PBR)- CNBC has been talking about PetroBras a lot lately and about the massive oil field discovery they had recently. PBR has been an emerging market favorite for years. William Landers' Blackrock Latin America Fund (MDLTX), which I discussed in The Five Best Mutual Funds, has taken a large share of the Brazilian oil company. It is now the 5th largest company in the world, and they could also be sitting on the world's largest oil field. The great thing about PBR as an investment is that it will continue to highly perform for the next 5+ years. The reason for this is while they are currently producing a large portion of world oil, it will probably take 5 or more years to fully utilize the recent discovery. This ensures future profits for PetroBras.
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The latter is probably only a good idea when you are focused on a longer term horizon. Waiting and holding will almost always payoff if you are looking 15 to 20 years into the future. Sitting on the sidelines with cash is a safe but cautious approach. Many investors are doing just this and are completely fine with no return.
100% Free Stock Trade. Trade stocks for free on Zecco.com. The Free Trading Community.
If you want returns, and substantial returns at that, you must seek out the best investments for the near to mid-term future. These stocks you want to hold for 2-5 years, and you can hold them for longer if they are still fundamentally strong after 5 years.
Here are 3 Stocks That Can Make You Rich:
1. General Electric (GE)- GE recently posted lower than expected earnings which Jeff Immelt mostly blamed on the current economic status and troubles with GE's financial business segments. This is more than likely a cyclical price decline, and the stock could realistically bring you 15% returns by the end of 2008. Also, CEO Jeff Immelt is under the gun for the next couple of quarters to perform or he could be ousted. Either way, if Immelt improves the company improves, and if he gets fired then the new CEO has a good chance of bringing more to GE's bottom line. Another great part of GE is the alternative energy pipeline, a part of the Eco-magination realm. GE has invested billions into alternative energy production including wind turbines, which will become increasingly significant for energy independence and sustainablility. It's a win-win.
2. Merrill Lynch (MER)- Although the financials will probably not come back to 2006-2007 values until well into 2009, that allows for a lot of buying up of financial stocks for you and institutional investors. Merrill Lynch is fundamentally sound. They will probably come up as a top performer in the next 2-3 years allowing the stock to double or more. Mother Merrill won't fail you, especially if you are looking further than just 2008.
3. PetroBras (PBR)- CNBC has been talking about PetroBras a lot lately and about the massive oil field discovery they had recently. PBR has been an emerging market favorite for years. William Landers' Blackrock Latin America Fund (MDLTX), which I discussed in The Five Best Mutual Funds, has taken a large share of the Brazilian oil company. It is now the 5th largest company in the world, and they could also be sitting on the world's largest oil field. The great thing about PBR as an investment is that it will continue to highly perform for the next 5+ years. The reason for this is while they are currently producing a large portion of world oil, it will probably take 5 or more years to fully utilize the recent discovery. This ensures future profits for PetroBras.
Why Invest in Stocks?Find Out On Zecco.com Free Blogs, Forums & Trade.
www.zecco.com
Browse Travel by Destination at Luxury Link
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