6 Characteristics Of A Good Long Term Stock

Hi everyone, thank you for coming back to my blog. I hope you found my last blog interesting and useful, where I covered ‘How To Invest Like Warren Buffett’.In this blog, I’m going to show what characteristics you should be looking out for when it comes to a good long term stock, as these stocks can give you a larger and more consistent return the longer you hold on to them for.Warren Buffett and other value investing proponents are quick to point out that you should be willing to stay the course for an extended period of time in order to get the benefit of value stock picks. Sometimes, this can even take over 10 years.It’s important to be able to separate the long-term investment companies from the short-term ones. To find a stock that you might be kept for 10 or more years, it’s important to know the characteristics that these stocks possess. Fortunately, there are several qualities frequently shared by these long-term plays.Stocks for the long haul frequently share these characteristics:Simple businesses that produce products or services that have stood the test of time are usually good long term investments. A few examples of such products would include toothpaste, toilet paper, office supplies, banks, and insurance companies.· Many of these businesses may be seen as “boring,” but these products and services have been around for a while and will continue to be important.· High-tech firms frequently don’t meet this requirement, unless they are extremely well-established. Microsoft would be a very good example, but AOL, which is still around (yes, really), is hardly the company it was back in the late 90’s.Companies with minimal debt and good cash flow are likely to survive even when the economy is faltering. These companies are typically unshakable and pay consistent dividends. Dividend…