Identifying Characteristics of Stocks to Own Forever
By Anthony Rhodes
The wheel is perhaps the greatest industrial tool ever invented. Its elegant design was so well conceived that it has practically remained unchanged for thousands of years, and as a testament to its importance, has spanned from humble, wheelbarrow beginnings, to becoming an indispensable component for just about every device involved in land transport afterwards.
From an investing perspective, the wheel would also qualify as that rarest of all breeds of stocks: those in which to purchase and never sell. Because of its broad utility in so many different areas, a hypothetical investor would have purchased its IPO a millennia ago, and countless generations later, would still be providing growth to the portfolio of their offspring to this very day.
To understand exactly why this tool has become so incredibly successful, one need only to observe its fundamental characteristics. An elegant design accompanied by multi-use applications certainly contributes, but a closer examination reveals that other attributes play just as important roles in the wheels' success. And more surprising, that such properties are not unique to this particular product, but are standardized components of each and every one of these rarest of all equities.
An Absence of Alternatives
One attribute that 'forever stocks' tend to have in spades, is that there are simply no comparable alternatives to their usage. Having established their positioning as the sole resource required to perform necessary tasks, these products absolutely must be utilized if such activities are to be enacted, making their eventual purchasing a forgone conclusion. This very important characteristic causes these products to stand out from amongst the crowd, and certainly will do so from within your portfolio. Upon your discovery of a product whose usage is mandatory towards the implementation of certain essential tasks, add its name to your selection of stocks without a moments' hesitation, and strongly consider holding on to it for the remainder of your life.
Forever stocks also hold the clear distinction of being free of the ability to be improved upon. Due to their simplistic complexity, these products withstand the test of time by simply being timeless, meaning that father, son and grandson (or mother, daughter and granddaughter) will each have the exact same experience when utilizing it, regardless of era or geographic location. This aspect aligns perfectly with the unique quality of the product, and cements its legacy as a proven gender neutral multi-generational resource. Some minute alterations may be added in the name of comfort or personal expression, but the core functioning of the tool will remain universal. And despite its implementation, the product will continue to provide consistent performance for its end user, with little if any indications of its age or year of origin.
It's hard to imagine what our world would look like without the creation of the wheel. Though its inventor remains unknown, the magnitude of their discovery would certainly place him or her amongst mankind's greatest creators; a heritage to be shared with other luminous visionaries like Archimedes, Heron and Edison.
A popular saying states "The more brilliant the discovery, the more obvious it appears afterwards." and this can certainly be applied to all 'forever stocks'. For the true indication of genius is not in its ability to be eventually perceived by others, but instead lies in the foresight of those with a tendency to do so prior to everyone else recognizing it.
(Anthony Rhodes is the President and owner of wealth management firm The Planning Perspective www.theplanningperspective.com. Do not reproduce without permission.)