Stocks to Retire RICH in 20 years | Coffee Can Investing

hello full Compounders welcome back today we're diving into an intriguing investment strategy that's perfect for those who prefer a set it and forget it approach imagine if you were frozen cryogenically for 20 years which stock would you buy today knowing that you can't change your portfolio until you're taught out in the year 2024 it's a well taught right but it's a powerful exercise to sharpen your investment decisions in today's video we're going to implement the concept of coffee can portfolio a term coined back in the 1980s referring to the oldtime practice of of storing valuable items into coffee cans and hiding them away for the long term just like those coffee cans this investment strategy involves picking stocks you believe strongly in enough to hold onto them for decades without the temptation of selling I made an entire video about coffee can investing and here's the link check it out so in today's exercise we've narrowed down our choices to three contenders ber hatway Nvidia and vo which is the Vanguard S&P 500 ETF each of these have has unique strengths and today we'll break them down to decide which might be the best single stock to own for the next 20 years so let's get started this video is for educational purposes only and should not be considered Financial advice I am not your financial adviser and you're responsible for your own financial decisions first up let's take a look at Warren Buffett's birkshire haway this conglomerate isn't just a collection of businesses it's a carefully curated Empire birkshire fully owns a variety of companies including BFS Railway Geico and duracel which are leaders in their respective Industries and contribute to a steady and robust cash flow birkshire also boast a substantial Investment Portfolio including heavy weights like Apple Bank of America and Coca-Cola managed under the watchful eye of War Buffett these Investments are selected for their enduring competitive advantages and Stiller management teams so let's talk about performance over the past 10 years birkshire hatway has delivered an annualized return close to 133% that's 13% annually while over the 20year per period the last 20 years annualized returns hovers a little bit above 10% these figures showcase not just consistent growth but also a resilience through various Market Cycles this blend of fully owned businesses and strategic Market Investments gives birkshire haway a Unique Edge its hybrid model balancing predictable earnings from its subsidiaries with growth potential from its Equity Investments aligns perfectly with long-term investment strategies Warren Buffett May no longer be at the helm 20 years from now his principles are deeply ingrained in the company's culture succession plans are solid with capable leaders ready to take the wheel with a philosophy centered around long-term value creation birkshire hatway stands out as a Vasan of stability its conservative approach and robust Financial Health make it a safe Harvard during economic storms ideal for those looking to invest and forget it for decades if stability season leadership and a proven track record or what you seek birkshire haway could be your best pick for the next 20 years it's like owning a slice of American corporate history poised to continue its Legacy of growth and value by the way some of you have asked what tools I use for screening stocks I use stock Rober and Seeking Alpha check out the links in the description below next let's delve into Nvidia a Powerhouse in the technology sector known for its Advanced Graphics processing units gpus Nvidia has carved out a significant niche in the high performance Computing gaming and especially in AI applications nvidia's AI chips are at the heart of the revolution its gpus are not only favored for gaming but are increasingly crucial in the AI research and data centers driving advancements in everything from autonomous vehicles to complex data analytics looking at performance Nvidia has delivered spectacular returns with an annualized rate of return of around 70.9% over the past 10 years and 36.1% over the last 20 years these figures highlight the explosive growth driven by high demand for its innovative Technologies Nvidia leadership in AI is not just about current technology the company is also at the Forefront of AI development continually pushing the boundaries of what's possible its gpus are essential for training complex AI models a market that is growing and expected to continue growing exponentially as more Industries adopt AI Solutions however while Nvidia offers significant growth potential it also comes with risk the tech sector's rapid pace of innovation means Nvidia must continuously evolve to stay ahead currently Nvidia is the top dog in AI chips however competition is intense with autot tech Giants striving to capture a share of this lucrative AI market for those of you with a highrisk tolerance looking for substantial growth over the long hoold Nvidia presents a compelling option its role in powering the future of AI could lead to outsized gains making it a potential rewarding investment for our 20-year Time Capsule or coffee C before we continue let me take a moment to share with you some information about Mumu docomo to buy ETF stocks or stock and index options let me suggest you take a look at mum. I recently started using their platform and I have been pleasantly surprised by the excellent value that they provide they offer commission free trading which means no commissions on US Stocks ETFs and stock options they also have free real time level two data no account minimums and no trade minimums they have web-based and mobile trading platforms and they also provide free paper trading if you decide to use Mumu and use the exclusive Link in the description of this video to open an account and fund a new account you will be helping this channel because Mumu will send us a referral fee by the way check out their welcome rewards between April 1st and May 28 2024 they are giving a 1.5% cash reward match for transfers into the account or for a deposit of $100 they'll give you seven fractional shares of The Magnificent 7even worth around $35 turning your attention to vo the Vanguard S&P 500 ETF this option offers a broad Market exposure by mirroring the performance of the top 500 companies in the US it's a diversified approach of to investing reducing Risk by spreading it across various Industries an ETF or exchang traded fund is like a basket that contains many investments in Bo's case it's a basket that contains the 500 largest publicly traded companies in the United States ETFs like Boo trade on the stock exchange like single stocks Bo is a staple in many investment portfolios due to its representation of the broader Market over past 10 years Boo has seen an annualized return of approximately 12.5% and over the past 20 years around 10% these returns reflect the steady growth of the American economy through its top companies an ETF like Boo benefits from a low expense ratio 0.03% or three basis points making it an economical choice for long-term investors it's particularly appealing for those who prefer a passive investment strategy allowing them to benefit from the market growth without the need to manage indiv ual stocks while Bo offers a safer investment route with its broad diversification remember that it tracks the market meaning it will replicate both the ups and downs for long-term investors this generally means participating in the overall growth trend of the US economy which has historically trended upward for those looking for a balanced less volatile investment that grows with the US economy Bo could be your ideal choice for the next 20 years it's a foundation to rely on providing steady if not spectacular returns having a explored the unique strengths and potentials of vershire haway Nvidia and vo is decision time if I had to pick just one stock for the next 20 years given a scenario where diversification and minimal risk or key my choice would be vo it's a broad Market investment mirroring the growth of the largest US companies and offering a balanced steady growth trajectory but if the rules allowed for a more nuanced approach i' consider a core satellite portfolio strategy by the way I made a video about core strategy approach here's the link so here's how I'd set it up I would put 70% in vo for stable broad Market coverage 20% in birkshire hatway for its resilience and diversified business model and 10% in Nvidia for that high growth potential driven by advancements in Ai and Technology this approach offers a solid foundation with poo while capturing the value and stability from birkshire hatway and the growth and Innovation driven by Nvidia it's about balancing the safety of wide Market exposure with the targeted growth opportunities in key sectors aligning with the vision of Diversified and robust Returns the right strategy for you really depends on your personal financial goals risk tolerance and investment Horizon whatever you choose think long-term invest wisely and stay committed to your decision and remember always be compounding see you in the next video take care

Channel: Always Be Compounding Club

Views: 539

Keywords: how to invest, investing, stock market, stock market for beginners, how to invest money, how to build wealth, how to invest in the stock market, passive income, financial freedom, investing in stocks, investing for beginners guide, personal finance, income generation, investment plan, investing savings, stock portfolio, one stock for 20years, time capsule investing, coffee can investing, core satellite investing, berkshire hathaway, Nvidia, VOO, vanguard

Id: POwT0uSHRUE

Length: 8min 51sec (531 seconds)

Published: Thu May 02 2024