Sometimes a stock is cheap for all the right reasons. Sure, Wall Street is often too focused on the short term, and that pessimism can create attractive buying opportunities for patient investors. But in cases where a stock's plummeted from its highs, the slump could be tied to negative and potentially enduring changes in the company's earnings outlook.
Imagine this: You walk out to the mailbox expecting the usual deluge of bills and junk mail -- only to be greeted with a lovely surprise: an actual check for $10,000! So, let's take this daydream a little further, shall we? What would be the best way to invest these 10,000 smackers? Let's have a look at a hypothetical three-stock portfolio that I think could really pay off.
Don't tell that to the users of Robinhood Markets (NASDAQ: HOOD), a stock trading platform popular with retail investors. Using Robinhood's users as inspiration, I would consider buying and holding these three popular stocks for the long haul. Microsoft (NASDAQ: MSFT) has evolved and grown for decades, a rare feat for many companies in an industry where competition and technological advancements constantly threaten.