What are the seven stocks to buy and hold forever?
Dubbed the Magnificent Seven stocks, Apple, Microsoft, Google parent Alphabet, Amazon, Nvidia, Meta Platforms and Tesla lived up to their name in 2023 with big gains. But the first quarter of 2024 has shown a big divergence of returns.
| Stock | Market Capitalization | Sector |
|---|---|---|
| Colgate-Palmolive Co. (CL) | $73 billion | Consumer staples |
| Sysco Corp. (SYY) | $41 billion | Consumer staples |
| Coca-Cola Co. (KO) | $261 billion | Consumer staples |
| S&P Global Inc. (SPGI) | $134 billion | Financials |
Dubbed the Magnificent Seven stocks, Apple, Microsoft, Google parent Alphabet, Amazon, Nvidia, Meta Platforms and Tesla lived up to their name in 2023 with big gains. But the first quarter of 2024 has shown a big divergence of returns.
The Magnificent Seven stocks—which aside from Apple and Nvidia include Tesla, Microsoft, Alphabet, Amazon, and Meta Platforms—were mostly trading lower on Wednesday. Tesla was up 0.6%; Amazon was flat; Microsoft was down 0.2%; Alphabet was down 1%; while Meta was down 1.1%.
The phrase "Magnificent Seven" was coined last year to describe the seven most prominent tech companies, which include Alphabet, Amazon (NASDAQ: AMZN), Apple, Meta Platforms, Microsoft, Nvidia (NASDAQ: NVDA), and Tesla.
Amazon and Apple have the cash and customer appeal to stick around forever. One of the best investments you can make is to buy shares of a financially strong company that makes products millions of people use every day. Amazon (AMZN 0.47%) and Apple (AAPL -0.83%) are two such companies that come first to mind.
1. Berkshire Hathaway ($628,390) Berkshire Hathaway is the holding company of billionaire investor Warren Buffett. Berkshire Hathaway A shares (BRK.A) reached a high of $628,390 on March 20, 2024.1 The stock traded at $623,300 per share as of the intraday trading session on March 26, 2024.
Alongside Microsoft Corporation (NASDAQ:MSFT), NVIDIA Corporation (NASDAQ:NVDA), and Apple Inc. (NASDAQ:AAPL), Adobe Inc. (NASDAQ:ADBE) is one of the best money making stocks to invest in. In its Q3 2023 investor letter, Polen Capital, an asset management firm, highlighted a few stocks and Adobe Inc.
The group is made up of mega-cap stocks Apple (AAPL), Alphabet (GOOGL), Microsoft (MSFT), Amazon.com (AMZN), Meta Platforms (META), Tesla (TSLA) and Nvidia (NVDA). In 2023, the Magnificent 7 stocks logged an impressive average return of 111%, compared to a 24% return for the broader S&P 500.
| Symbol | Name | % Change |
|---|---|---|
| CTAS | Cintas Corporation | +8.14% |
| ROIV | Roivant Sciences Ltd. | +8.09% |
| ENPH | Enphase Energy, Inc. | +7.95% |
| MARA | Marathon Digital Holdings, Inc. | +8.66% |
What is the cheapest magnificent 7 stock?
Investors should take a closer look at Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) in particular. Trading at a forward price-to-earnings (P/E) ratio of just 21.8, this tech giant is the cheapest of all the Magnificent Seven stocks based on this popular metric.
Although old-guard favorites such as American Express (AXP) and Coca-Cola (KO) still form the core of the portfolio, Buffett & Co. have taken a shine to names such as Apple (AAPL) and Amazon.com (AMZN), and even to lesser-known firms such as Snowflake (SNOW) and Nu Holdings (NU).
Rakesh Radheyshyam Jhunjhunwala (5 July 1960 – 14 August 2022) was an Indian billionaire investor, stock trader, and Chartered Accountant. He began investing in 1985 with a capital of ₹5,000, with his first major profit in 1986.
| Stock | Expected Change in Stock Price* |
|---|---|
| Tesla Inc. (TSLA) | 61% |
| Mastercard Inc. (MA) | 14.2% |
| Salesforce Inc. (CRM) | 7.2% |
| Advanced Micro Devices Inc. (AMD) | 11.3% |
For now at least, analysts are anticipating S&P 500 earnings growth will continue to accelerate in the first half of 2024. Analysts project S&P 500 earnings will grow 3.9% year-over-year in the first quarter and another 9% in the second quarter.
As a whole, analysts are optimistic about the outlook for stock prices in 2024. The consensus analyst price target for the S&P 500 is 5,090, suggesting roughly 8.5% upside from current levels.
- Johnson & Johnson (NYSE:JNJ)
- Chevron Corporation (NYSE:CVX)
- JPMorgan Chase & Co. (NYSE:JPM)
- Mastercard Incorporated (NYSE:MA)
- Citigroup Inc. (NYSE:C)
- Cisco Systems, Inc. (NASDAQ:CSCO)
- Adobe Inc. (NASDAQ:ADBE)
- Visa Inc. (NYSE:V)
Monster Beverage Corp.
In 30 years, Monster has generated a total return, which includes dividends, of 191,852% – making it the best-performing S&P 500 stock of the past three decades.
| Company Stock | Market Cap (crore) | Profit Growth (CAGR) |
|---|---|---|
| Hindustan Unilever | ₹6,04,408 | 12.4% |
| Infosys | ₹6,79,000 | 8.9% |
| Reliance Industries | ₹18,40,000 | 10.2% |
| TCS | ₹13,97,000 | 9.5% |
| Company | Symbol | YTD % Stock Gain |
|---|---|---|
| Amazon.com | (AMZN) | 78.4% |
| Netflix | (NFLX) | 53.9% |
| MSCI | (MSCI) | 42.8% |
| MarketAxess Holdings | (MKTX) | 32.3% |
Has anyone ever gotten rich from stocks?
Certain billionaires made their fortunes in the stock market. The list includes John Paulson, Warren Buffett, James Simons, Ray Dalio, Carl Icahn, and Dan Loeb. Buffett is by far the richest person of these six famous investors, with a net worth of $116 billion.
| S.No. | Name | CMP Rs. |
|---|---|---|
| 1. | SG Mart | 485.90 |
| 2. | Jai Balaji Inds. | 893.50 |
| 3. | Insolation Ener | 1724.10 |
| 4. | Waaree Renewab. | 1341.00 |
| Stock | Portfolio weight |
|---|---|
| Alphabet Inc. (GOOG, GOOGL) | 2.2% |
| Novo Nordisk A/S (NVO) | 2.1% |
| Liberty Broadband Corp. (LBRDK) | 1.4% |
| CRH PLC (CRH) | 1.3% |
| Stock | Implied upside over Jan. 24 close | Forward yield |
|---|---|---|
| Emerson Electric Co. (EMR) | 27.1 | 2.2% |
| Cincinnati Financial Corp. (CINF) | 1.8% | 2.7% |
| Coca-Cola Co. (KO) | 1.9% | 3.1% |
| Colgate-Palmolive Co. (CL) | 12.4% | 2.4% |
| Symbol | Name | Price (Intraday) |
|---|---|---|
| AAPL | Apple Inc. | 171.93 |
| CLSK | CleanSpark, Inc. | 21.66 |
| RIVN | Rivian Automotive, Inc. | 11.02 |
| NVDA | NVIDIA Corporation | 906.72 |
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