Latest news with #longTermInvesting
Yahoo
2 days ago
- Business
- Yahoo
5 Simple ETFs to Buy With $1,000 and Hold for a Lifetime
Key Points The Vanguard 500 ETF is a solid core holding nearly any investor should own. The Vanguard Growth ETF and Invesco QQQ Trust are two great growth ETFs. The Schwab U.S. Dividend Equity ETF is great for those seeking a solid yield. 10 stocks we like better than Vanguard S&P 500 ETF › When it comes to building long-term wealth, often times simplicity works best. You don't need to chase the hottest stock or time the market. What you do need are a few core positions you can buy, hold, and consistently dollar-cost average into. Exchange-traded funds (ETFs) are one of the best investments to do just that. Here are five ETFs that I think are perfect for long-term investors. You don't need to own all of them, but if you've got $1,000 to put to work, any of these would be a smart place to start. Just remember that $1,000 is just a starting point, and it's best to consistently invest into ETFs each month over time. Vanguard S&P 500 ETF If I could only pick one ETF to hold for the next 30 years, the Vanguard S&P 500 ETF (NYSEMKT: VOO) would be it. It tracks the 500 largest companies in the U.S., essentially giving you a slice of the entire U.S. economy. You get instant exposure to the market's biggest companies, which also just so happen to be some of the market's biggest winners. The ETF's expense ratio also incredibly low. It's just 0.03%, which means nearly every dollar you put into the fund is working for you. Over the past 10 years, it's produced an average annual return of around 13.6%, as of the end of June. That kind of consistency makes it one of the most reliable long-term investments out there. Vanguard Growth ETF If you want to lean more into tech and high-growth names, the Vanguard Growth ETF (NYSEMKT: VUG) is the investment for you. It still gives you broad exposure to large-cap stocks, but it focuses on companies with strong earnings and sales growth. That means you're getting more exposure to companies like Nvidia and Amazon. The ETF, which follows the CRSP US Large Cap Growth Index, currently holds around 165 stocks. The ETF's focus on growth has paid off with market-beating returns. Over the past 10 years, the Vanguard Growth ETF has returned an average of 16.2% annually, as of the end of June, easily outpacing the broader market. With an expense ratio of just 0.04%, it's also cost-effective. You're not getting the same diversification as the S&P 500, which means you could see more volatility at times. However, if you believe tech and innovation will continue to lead the market -- and I do -- this is a solid way to get more exposure without having to pick winners yourself. Invesco QQQ Trust Another simple, growth-oriented ETF to own is the Invesco QQQ Trust (NASDAQ: QQQ). The ETF tracks the Nasdaq-100, which includes the 100 largest non-financial stocks listed on the Nasdaq exchange. Not surprisingly, that means it is heavily concentrated in tech and consumer names. This ETF has consistently been one of the best performers out there. Over the past 10 years, it's returned 18.7% annually, as of the end of June. Even more impressive is that it's outperformed the S&P 500 more than 87% of the time on a rolling-12-month basis over the past decade. That type of performance is hard to ignore. Its top holdings read like a who's who of Silicon Valley: Apple, Microsoft, Nvidia, Amazon, and Alphabet, to name a few. That said, the weightings of its top holdings are a bit more spread out than some other tech-heavy ETFs, including the Vanguard Growth ETF. It does carry a slightly higher expense ratio at 0.2%, but for the performance you're getting, it's more than fair. If you're comfortable with a little more volatility in exchange for long-term upside, the Invesco QQQ Trust should be on your short list of ETFs to buy right now. Schwab U.S. Dividend Equity ETF While technology is a hot sector, not every investor is looking to go all-in on tech stocks. For investors with more interest in income and value stocks, the Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) is a great option. It tracks the Dow Jones U.S. Dividend 100 Index, which is focused on companies with strong dividend histories and solid fundamentals. It also has a low expense ratio of just 0.06%. The ETF currently has a yield of nearly 4%, giving investors a solid source of income. This fund isn't just investing in high-yield stocks, though; it is looking for ones that have strong track records of consistently increasing their dividends over time. While the ETF has not been putting up the same type of performance as growth-stock oriented ETFs, it has still been a solid performer. It has generated an average annual return, including dividends, of 11.2%, as of the end of June. That's better than most value-focused ETFs over the same stretch. If you're building a portfolio for retirement or just want a ballast in a growth-heavy portfolio, the Schwab U.S. Dividend Equity ETF fits the bill. Vanguard International High Dividend Yield ETF The simple fact is that most investors are underexposed to international stocks. The Vanguard International High Dividend Yield ETF (NASDAQ: VYMI) can help fix that predicament. This ETF focuses on non-U.S. companies with above-average dividend yields. Over 40% of its portfolio is in European names, with the rest split between Asia-Pacific and emerging markets. It's been the second-best-performing ETF in Vanguard's lineup so far this year, up 20.7% as of July 16, trailing only one that solely focuses on Europe. It's also been Vanguard's top-performing international-focused ETF over the past five years, with an average annual return of around 14.5%, as of the end of June. That's impressive given how long international markets have lagged the U.S. If you're looking to round out your portfolio with some international exposure, the Vanguard International High Dividend Yield ETF is worth owning. Its expense ratio of 0.17% is higher than most Vanguard ETFs, but that is typical of international-focused ETFs. Should you buy stock in Vanguard S&P 500 ETF right now? Before you buy stock in Vanguard S&P 500 ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Vanguard S&P 500 ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,056,790!* Now, it's worth noting Stock Advisor's total average return is 1,048% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Geoffrey Seiler has positions in Alphabet, Invesco QQQ Trust, and Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Nvidia, Vanguard Index Funds-Vanguard Growth ETF, and Vanguard S&P 500 ETF. The Motley Fool has a disclosure policy. 5 Simple ETFs to Buy With $1,000 and Hold for a Lifetime was originally published by The Motley Fool Sign in to access your portfolio
Globe and Mail
09-07-2025
- Business
- Globe and Mail
Motley Fool CEO: Selling Winners Too Soon Is Investors' "Most Significant Mistake"
Key Points Motley Fool CEO Tom Gardner recently said the worst mistake investors make is selling too soon. Long-term investing is a core principle of The Motley Fool's philosophy. Selling too soon could end up costing more than any losing stock investment. These 10 stocks could mint the next wave of millionaires › In a recent interview, The Motley Fool's CEO and co-founder, Tom Gardner, was asked what is the most significant mistake investors make. And it might be surprising to learn that the mistake he mentioned isn't one that involves losing money, at least in the immediate sense. "The most significant mistake that an investor makes is selling a winner too soon," Gardner said. "We don't think that because when we look at our portfolio and see a stock that's down 37%, we think 'that's the worst mistake I've made.' I put $4,000 in it, and I lost $1,000." Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » Gardner went on to say that there's a far greater risk of loss when it comes to selling a winning investment too early: "The biggest loser, though, is the winner you sold too soon -- that is, the ability to take money, $10,000, and put it into Starbucks (NASDAQ: SBUX) and end up with $500,000." Letting your winners run, and focusing on long-term investing in general, are cornerstones of The Motley Fool's investment philosophy. Gardner pointed out that some of the market's biggest winners had times when they looked like they had plateaued, specifically mentioning a five-year period during which tech heavyweight Nvidia (NASDAQ: NVDA) went nowhere -- before rocketing higher. He's absolutely right. From 2010 through 2014, Nvidia produced just a 12% gain for investors in five years after nearly quintupling during the 2000s. Since that time, however, Nvidia has been up by 33,000%. That's not a typo. Imagine if you had sold in 2014 because you thought the growth story was over. Learning the hard way I learned this lesson firsthand, earlier in my investing career. I've written the full story several times, but the general idea is that I made a modest investment of 100 shares in Tesla (NASDAQ: TSLA) at $23, shortly after its IPO in 2011, and sold in late 2013 to help pay for my wedding. At the time, the then-new Model S had just been named "Car of the Year" by Motor Trend, and the stock had nearly tripled from the price I paid. However, I could have certainly paid for my wedding in other ways, such as with the AT&T (NYSE: T) stock I had decided to hang on to instead. And if I had held my Tesla stock, it would have been a grand slam home run. Tesla has split twice since I sold, once 5-for-1 and again at 3-for-1, so my original 100 shares would now be 1,500 shares. The current price is about $292 per share, so my $2,300 investment would be worth about $438,000 today if I had held on. A valuable investing principle Of course, this was a tough lesson to learn, but it's one that has served me well in the 12 years since. To be sure, I still sell stocks occasionally, but for the right reasons. For example, I recently sold a stock because its growth unexpectedly slowed down. On the other hand, when I sold Tesla, the company had been doing exactly what I hoped it would, or even better. The only reason I sold is that the price went up and I decided to take a profit. For this reason, I'm sitting on large gains in the Bank of America (NYSE: BAC) stock I bought just after the financial crisis, the Block (NYSE: XYZ) shares I scooped up shortly after its IPO for about $10, and the shares of real estate investment trust Ryman Hospitality Properties (NYSE: RHP) that have been nearly a ten-bagger since I bought at the depths of the COVID-19 pandemic. There are other examples as well, but the point is that I've learned to let my winners keep winning. Hopefully this helps you learn it as well without repeating my Tesla mistake. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor's total average return is 1,048%* — a market-crushing outperformance compared to 179% for the S&P 500. They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor. *Stock Advisor returns as of July 7, 2025
Yahoo
09-07-2025
- Business
- Yahoo
GDEX Berhad (KLSE:GDEX) shareholders have endured a 58% loss from investing in the stock five years ago
Generally speaking long term investing is the way to go. But that doesn't mean long term investors can avoid big losses. For example, after five long years the GDEX Berhad (KLSE:GDEX) share price is a whole 59% lower. That is extremely sub-optimal, to say the least. Even worse, it's down 9.4% in about a month, which isn't fun at all. Now let's have a look at the company's fundamentals, and see if the long term shareholder return has matched the performance of the underlying business. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Given that GDEX Berhad only made minimal earnings in the last twelve months, we'll focus on revenue to gauge its business development. Generally speaking, we'd consider a stock like this alongside loss-making companies, simply because the quantum of the profit is so low. It would be hard to believe in a more profitable future without growing revenues. In the last half decade, GDEX Berhad saw its revenue increase by 1.1% per year. That's not a very high growth rate considering it doesn't make profits. It's likely this weak growth has contributed to an annualised return of 10% for the last five years. We'd want to see proof that future revenue growth is likely to be significantly stronger before getting too interested in GDEX Berhad. When a stock falls hard like this, some investors like to add the company to a watchlist (in case the business recovers, longer term). The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers). We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. It might be well worthwhile taking a look at our free report on GDEX Berhad's earnings, revenue and cash flow. We regret to report that GDEX Berhad shareholders are down 11% for the year (even including dividends). Unfortunately, that's worse than the broader market decline of 6.0%. However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. However, the loss over the last year isn't as bad as the 10% per annum loss investors have suffered over the last half decade. We'd need to see some sustained improvements in the key metrics before we could muster much enthusiasm. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with GDEX Berhad , and understanding them should be part of your investment process. If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: many of them are unnoticed AND have attractive valuation). Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Malaysian exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
05-07-2025
- Business
- Yahoo
Investors in Baxter International (NYSE:BAX) have unfortunately lost 60% over the last five years
Statistically speaking, long term investing is a profitable endeavour. But that doesn't mean long term investors can avoid big losses. For example the Baxter International Inc. (NYSE:BAX) share price dropped 64% over five years. That's an unpleasant experience for long term holders. Since shareholders are down over the longer term, lets look at the underlying fundamentals over the that time and see if they've been consistent with returns. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. Over five years Baxter International's earnings per share dropped significantly, falling to a loss, with the share price also lower. This was, in part, due to extraordinary items impacting earnings. At present it's hard to make valid comparisons between EPS and the share price. But we would generally expect a lower price, given the situation. The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image). We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. Dive deeper into the earnings by checking this interactive graph of Baxter International's earnings, revenue and cash flow. As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. We note that for Baxter International the TSR over the last 5 years was -60%, which is better than the share price return mentioned above. This is largely a result of its dividend payments! Baxter International shareholders are down 9.1% for the year (even including dividends), but the market itself is up 15%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. However, the loss over the last year isn't as bad as the 10% per annum loss investors have suffered over the last half decade. We'd need to see some sustained improvements in the key metrics before we could muster much enthusiasm. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Take risks, for example - Baxter International has 2 warning signs we think you should be aware of. Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges. — Investing narratives with Fair Values Suncorp's Next Chapter: Insurance-Only and Ready to Grow By Robbo – Community Contributor Fair Value Estimated: A$22.83 · 0.1% Overvalued Thyssenkrupp Nucera Will Achieve Double-Digit Profits by 2030 Boosted by Hydrogen Growth By Chris1 – Community Contributor Fair Value Estimated: €14.40 · 0.3% Overvalued Tesla's Nvidia Moment – The AI & Robotics Inflection Point By BlackGoat – Community Contributor Fair Value Estimated: $359.72 · 0.1% Overvalued View more featured narratives — Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
02-07-2025
- Business
- Yahoo
Despite delivering investors losses of 55% over the past 5 years, Zalando (ETR:ZAL) has been growing its earnings
Statistically speaking, long term investing is a profitable endeavour. But that doesn't mean long term investors can avoid big losses. Zooming in on an example, the Zalando SE (ETR:ZAL) share price dropped 55% in the last half decade. That's an unpleasant experience for long term holders. Shareholders have had an even rougher run lately, with the share price down 13% in the last 90 days. While the stock has risen 8.1% in the past week but long term shareholders are still in the red, let's see what the fundamentals can tell us. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. While the share price declined over five years, Zalando actually managed to increase EPS by an average of 53% per year. So it doesn't seem like EPS is a great guide to understanding how the market is valuing the stock. Or possibly, the market was previously very optimistic, so the stock has disappointed, despite improving EPS. Because of the sharp contrast between the EPS growth rate and the share price growth, we're inclined to look to other metrics to understand the changing market sentiment around the stock. In contrast to the share price, revenue has actually increased by 6.8% a year in the five year period. So it seems one might have to take closer look at the fundamentals to understand why the share price languishes. After all, there may be an opportunity. The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image). It's probably worth noting that the CEO is paid less than the median at similar sized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. So we recommend checking out this free report showing consensus forecasts It's nice to see that Zalando shareholders have received a total shareholder return of 28% over the last year. Notably the five-year annualised TSR loss of 9% per year compares very unfavourably with the recent share price performance. This makes us a little wary, but the business might have turned around its fortunes. Before deciding if you like the current share price, check how Zalando scores on these 3 valuation metrics. If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: many of them are unnoticed AND have attractive valuation). Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on German exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
