If I Could Only Buy and Hold a Single Stock, This Would Be It (Hint: Not Nvidia)

Patience is what separates short-term traders from long-term wealth builders. According to J.P. Morgan Asset Management, a $10,000 investment in the benchmark S&P 500 index from July 1, 2005, to June 30, 2025, earned an annualized return of 10%. However, when only the 10 best trading days in this period were missed due to selling, the annual return fell to 5.6%.While this may hold for the overall market, all stocks are not created equal. Only a few are resilient enough to reward long-term investors. According to Hendrik Bessembinder’s study “Do stocks outperform Treasury Bills?,” just over 4% of stocks managed to push the stock market’s returns over that of Treasury bills from 1996 to 2017. Hence, it is essential to recognize these high-quality stocks to benefit from the buy-and-hold strategy in the long run.If I could only buy and hold one such stock, it would be Broadcom (NASDAQ: AVGO). Although Nvidia emerged as the poster child of the ongoing artificial intelligence (AI) revolution, Broadcom is also playing a crucial role in the global AI infrastructure buildout. Shares of this semiconductor and networking giant gained over 2,780% in the past decade and over 51% so far in 2025. Yet, the shares could continue to go even higher in the next few years. Here’s why.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool