4 Stocks To Buy And Hold For The Next 20 Years

Do you want to become rich by only buying stocks? It’s possible but most investors think they can become rich by looking for the next Apple, Facebook or Netflix. However, this rarely makes anybody rich. You need to understand the necessity to invest for the long-term (just like secular investor does).

The Motley Fool found 4 stock they think you can buy now and hold for the next 20 years. The key to success is to find stocks that benefit from long secular cycles. Buy and hold can be the perfect strategy for the following stocks.

CVS Health (CVS)

10,000 baby boomers turn 65 every day, and the over-65 population is expected to grow to 81 million people in 2040 from 40 million people in 2010. Since CVS Health operates one of the largest retail prescription networks in the country, and runs the second largest pharmacy-benefit manager in the United States.

CVS Health is perfectly positioned to benefit from volume growth tied to this upcoming (and massive) demographic shift. CVS Health’s sales and profit should climb because of boomers, and trades at a forward P/E ratio of only 16.6.

Amazon (AMZN)

Amazon is already 19 year on the stock market. It made a nearly 1,300% gain over the past decade. And still Amazon invests like a startup. The growth is truly exceptional. E-commerce only accounted for around 7.4% of total U.S. retail sales last quarter, which means Amazon’s retail business still enjoys an enormous runway for stateside growth.

At the same time, North America still represented more than 59% of Amazon’s total revenue in Q3, leaving plenty of room for Amazon to grow its international retail presence.

Chipotle Mexican Grill (CMG)

Chipotle Mexican Grill has a big problem at the moment: an outbreak of E. Coli that the Centers for Disease Control has linked to the company’s restaurants. The outbreak does a lot of damage to Chipotle. In the past various food chains where linked to an E. Coli outbreak and most survived.

Yet at least so far, cases involved with Chipotle are far less than in past outbreaks that other restaurant chains experienced. The risk of mismanaging the epidemic does exist, but given Chipotle’s past commitment to high-quality healthy food, the company is more likely than not to find a path back to prosperity after the episode blows over.

Mastercard (MA)

Mastercard is a phenomenal company. It operates in 150 countries and registers more than 30 billion transactions each year. Yet over half of all transactions in the U.S. are still cash or check. Mastercard has a steady cash flows and relatively low cost of growth. MasterCard’s network won’t need significant costs to expand.

Mastercard also operates in a sector with a strong competitive advantage. It’s active in an industry with high barriers to entry, and a low risk of disruption. Very few companies have one or two of those characteristics. MasterCard has all of them.