Poll: In for the Long Haul
“If you could only own one investment for the rest of your life, what would it be?”
- 32% FAANG. Tech stocks will live for ever
- 28% Land. Ain’t making it anymore!
- 20%: Index fund. I won’t lose money
- 10% Precious metals. Can always wear it
- 10% Famous franchises. They go on and on
The community’s word is final, and the sector most prone to disruption and change won our contest with 32% of the vote. The public can go cold on tech brands when troughs in the boom and bust cycle hit, punishing those without fortress-like balance sheets and strong fundamentals.
Facebook has a brilliant set of financials, free of debt, and padded firm with a thick cash cushion. Amazon’s ain’t too shabby either, and Apple? Take a bow. Netflix might run it close if the economy drops off, and consumers get nervy, but its recent quarterly report suggested a very loyal subscriber-base that could bail it out.
Land bagged the silver medal with 28%. Property has always proven itself to be a secure and lucrative avenue for investors, and that’s set to continue so long as climate change doesn’t put most of it underwater by 2070. Investors fearing that (and Jeff Bezos and Mark Zuckerberg dying before them) make up 20% of our respondents choosing index funds!
These are ready-made baskets of every stock on an exchange in equal weighting. That is, you track the S&P 500, or the FTSE 100, or the Royal Stock Exchange of Bhutan!
An index fund gets you over the line, but it doesn’t turn you into a billionaire. It’s more so a bet against active stock picking and the other four options in our poll.
Finally, it’s a tie for plum last. The second-most defensive investments in the mix here are famous franchises. Household names like Nike, Disney, Coca-Cola, and Diageo do indeed go on, and on, and on. They sell products that have been in demand since the beginning of recorded history and invariably have an everlasting future ahead. That’s why investors looking for a secure dividend drip will opt for these long-term compounders.
As for precious metals, if we destroy the one planet we have, commodity prices for the fruits of the earth will skyrocket. However, diamond rings are not productive assets like businesses. They create zilch on their own. Nada. Nothing!
Few expected FAANG to run away with this poll! The future is a long time. What do you make of it all?
