When I am evaluating long term stock opportunities, I focus on the company's financial health, including its revenue growth, profit margins, and return on equity, as well as its competitive advantage, industry trends, and management team's track record, to determine if it has the potential to sustain long-term growth and outperform the market.
Examples of US stocks that turned out to be great long-term bets include:
- * $Microsoft(MSFT)$ *: Tech giant with solid financials, expanding cloud and AI capabilities.
- * $NVIDIA Corp(NVDA)$ *: Leader in graphics processing units and artificial intelligence computing.
On the other hand, some not-so-great long-term bets might include companies with:
- *Poor Financial Health*: High debt, declining revenue, or inconsistent profitability.
- *Weak Industry Trends*: Companies in declining industries or with limited growth prospects.
- *Poor Management*: Ineffective leadership or questionable capital allocation decisions.
What Makes a Stock Worth Holding Long-Term?
@MillionaireTiger：Some investors aim to hold a stock for years — or even decades — but not every company deserves that level of commitment. 👉 What kind of stock is truly worth a long-term, heavy position? One commonly used method is the PEG + PE approach, which helps assess both valuation and growth potential. PE (Price-to-Earnings) shows how expensive the stock is right now. PEG = PE ÷ Profit Growth Rate (%) helps judge if the price is fair based on how fast the company is growing. 📊 PEG < 1 suggests the stock may be undervalued. 📊 PEG > 1 could mean it’s priced too high for its growth rate. Example: PE 20 with 40% profit growth → PEG = 0.5 (potentially undervalued) PE 50 with 30% growth → PEG = 1.67 (potentially overvalued) This method encourages looking for companies with strong, steady growth at reasonable prices. 🔍 Discussion Time What key factors help decide whether a stock is worth holding long-term? Any examples of stocks that turned out to be great (or not-so-great) long-term bets? 👇Share your thoughts and let’s learn from each other’s perspectives.
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