.png)
Is Enterprise Products Partners the Smartest Investment You Can Make Today?
You'll sometimes see investors pose the question online: "If you had $1 million and could only invest in one stock to hold for the next 10 years, what would it be?" On the surface, it's a way to crowdsource stock ideas, but it also brings in two key factors: time horizon and downside protection. After all, if you're locking in that kind of money for a decade, the last thing you want is to end up with less than you started.The truth of the matter is that most stocks ultimately underperform. A J.P. Morgan study found that between 1980 and 2020 40% of stocks in the Russell 3000, which consists of the 3,000 largest companies that trade in the U.S., experienced what it called a "catastrophic stock price loss," which it defined as a 70% price decline from which a stock never fully recovered. In addition, 40% of stocks during this period had absolute negative returns, and two-thirds underperformed the index. Against that backdrop, that is why I also answer the question with the same stock: Enterprise Products Partners (NYSE: EPD). In fact, it is the stock I've owned the longest, holding it since 2008.Continue reading
You'll sometimes see investors pose the question online: "If you had $1 million and could only invest in one stock to hold for the next 10 years, what would it be?" On the surface, it's a way to crowdsource stock ideas, but it also brings in two key factors: time horizon and downside protection. After all, if you're locking in that kind of money for a decade, the last thing you want is to end up with less than you started.
The truth of the matter is that most stocks ultimately underperform. A J.P. Morgan study found that between 1980 and 2020 40% of stocks in the Russell 3000, which consists of the 3,000 largest companies that trade in the U.S., experienced what it called a "catastrophic stock price loss," which it defined as a 70% price decline from which a stock never fully recovered. In addition, 40% of stocks during this period had absolute negative returns, and two-thirds underperformed the index.
Against that backdrop, that is why I also answer the question with the same stock: Enterprise Products Partners (NYSE: EPD). In fact, it is the stock I've owned the longest, holding it since 2008.
