6 ‘Deadly Sins’ Stocks for Long-Term Investors in an Unsettled Market [PREMIUM ANALYSIS]
Written by Nick Sciple at The Motley Fool Canada
In the past 10 years, Canadian investors have endured a cannabis bust, whatever’s going on with crypto, and a global pandemic. After coivd came the invasion in Eastern Europe. Then a housing price crash. Now a banking run in the States.
When change is coming fast and furious, I like to take a page from Jeff Bezos’s playbook and consider what won’t change over the next 10 years. Bezos has noted that people focused on the long term don’t tend to have much competition. It’s the same with stocks. While other investors try to follow the money from headline to headline, I like to think about something that won’t change anytime soon: the fact that people behave like … people. And these six stocks capitalize on that.
The Human Habits That Just Don’t Stop
For the sheer staying power, an investor could do a lot worse than looking at companies that are related to the 7 Deadly Sins: pride, greed, wrath, envy, lust, gluttony and sloth.
Here are 6 companies that have built killer business models and are worthy of your consideration:
Chipotle Mexican Grill (NYSE:CMG) has delivered more than 35X returns for investors since its IPO, in part by convincing customers that a 1,300-calorie burrito with 60 grams of fat is healthy. Whether you call it fast food or fast casual or something else, restaurants aren’t going anywhere.
Envy and Pride
Meta Platforms (NASDAQ:META) has built a nearly $500 billion business by facilitating envy and pride on its Facebook and Instagram platforms. From staring at reflecting pools to staring at mirrors to now staring at phones, people have always been (and will continue to be) vain.
Match Group (NASDAQ:MTCH) generates more than $3 billion in annual revenue by keeping thirsty dudes (and ladies) swiping the day away. With more men and women meeting online than ever before, sinners and saints alike are making their way to Tinder and Hinge.
You could have made 5X your money over the past decade by owning Intuit (NASDAQ:INTU), whose TurboTax platform profits from customers who don’t want to put in work doing their own taxes (another thing that isn’t going away anytime soon).
Luxury-goods maker LVMH has made its founder Bernard Arnault the richest man in the world by meeting humanity’s relentless need to stand out from the crowd.
Defense manufacturers like Lockheed Martin (NYSE:LMT) have been among the best-performing stocks in market history, as military spending continues to rise year after year.
The Foolish Bottom Line
In a constantly changing world, focusing on the long term and investing in companies with timeless business models can help. Companies that play off of the 7 Deadly Sins can be profitable opportunities that tap into human nature and provide stable returns for years to come.
The post 6 ‘Deadly Sins’ Stocks for Long-Term Investors in an Unsettled Market [PREMIUM ANALYSIS] appeared first on The Motley Fool Canada.
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Nick Sciple owns shares of Meta Platforms and Match Group. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. The Motley Fool recommends Intuit, Lockheed Martin, Match Group, and Meta Platforms. The Motley Fool has a disclosure policy.