One of the simplest ways to secure your financial future is to take a position, and one of the simplest ways to take a position is over the future. With the difficulties that came during 2020, =it’s going to be tempting to chop loose in 2021. But the economy remains recovering, and it’s more important than ever to specialize in long-term investing and stick with your game plan.

While many of us consider investing in forming a short-term score within the stock exchange, it’s long-term investing where regular investors can build wealth. By thinking and investing future, you’ll meet your financial goals and increase your financial security.

Investors today have some ways to require a position their money and may choose the extent of risk that they’re willing to take to satisfy their needs. you’ll select very safe options like a certificate of deposit (CD) or dial-up the danger – and therefore the potential return! – with investments like stocks and stock mutual funds or ETFs.


You are often told you cannot time the market. Individual investors are frequently trying to find the most straightforward stocks to carry for the future. And none aside from billionaire investor Warren Buffett, in his 1988 chairman’s letter to shareholders of Berkshire Hathaway Inc., wrote that “when we own portions of outstanding businesses with outstanding managements”—as Berkshire Hathaway does and individual investors can treat purchasing stocks on the open market—”our favorite holding period is forever.

Buffett’s answer to its question was released within the Berkshire Hathaway 2019 letter to shareholders: “We constantly seek to shop for new businesses that meet three criteria. First, they need to earn good returns on the internet. (Tangible capital required in their operation.) Second, they need to travel by able and honest managers. Finally, they need to be available at a wise price.


Berkshire Hathaway (BRK.A, BRK.B)

Finally, we’re going to Buffett’s own company. At $350,320 on Jan. 17, 2021, Berkshire Hathaway’s Class A stock (BRK.A) price was so expensive, most Americans would need to work several years to shop for even one share. The category B shares trade at a way lower price: $233.49 thereon date.

Buying Berkshire stock is like depending on Buffett, who built on his investments in textile mills within the 1960s to become the world’s sixth-richest person, with a net worth of $88.1 billion, as of Jan. 17, 2021

 It also means buying a bit of an outsized stable of well-known and obscure companies, including insurance firm GEICO, fast-food chain International Dairy Queen, battery maker Duracell, packaged food giant Kraft Heinz, paint maker Benjamin Moore, and Acme Brick Company.

Only 55 years have passed since 1965, which may be a lot shorter than forever. But if you had invested $1,000 with Buffett that year, it might are worth $27 million in early 2020.

The Balance doesn’t provide tax, investment, or financial services and advice. The knowledge is being presented inconsiderately of the investment objectives, risk tolerance, or financial circumstances of any specific investor and won’t be suitable for all investors. Past performance isn’t indicative of future results. Investing involves risk including the possible loss of principal.

Johnson & Johnson

All anyone can mention in 2020 is COVID-19 and therefore the impending vaccine. At the forefront of vaccine development is Johnson & Johnson, which is already in late-stage clinical trials. The corporate that produces a one-shot COVID-19 vaccine will see a massive demand for it, suggesting a stock price that’s able to soar. Beyond this, Johnson & Johnson has been a blue-chip play for many years. It stands to be a jewel in any investor’s portfolio because of its stability, dividend and comparatively large moat.

This New Jersey-based health care and pharmaceutical giant is understood in financial parlance as a “dividend aristocrat.” Since a minimum of 1973, Johnson & Johnson has increased the worth of its annual cash dividends every single year. In 2020, it paid dividends totaling $3.98 a share, up from $3.75 a share in 2019.

Over an extended period, dividends reinvested in J&J stock will enable you to accumulate a more significant number of shares, which may be worth a considerable amount if those shares appreciate. And within the 10 years ended on Jan. 17, 2021, the stock’s split-adjusted return (not including reinvested cash dividends) was 156.27%

The Coca-Cola Company

Buffett has owned the eponymous beverage maker since 1988, and it’s been one of his most successful holdings. Coca-Cola continues to grow worldwide, following a singular strategy of selling mainly syrup and concentrating on bottlers and restaurants, which then formulate the finished products you see in grocery stores and restaurants.

While the U.S. market is somewhat saturated, the leading brand and high-profit margins make Coca-Cola a cash cow—a source of dependable earnings, year in and year out. Additionally, the corporate generates the lion’s share of sales overseas, and it sports strong product growth rates in emerging markets like India. While Coca-Cola India experienced a 2% fall in its consolidated net income, its total income was up 18.16% during 2019-20. Finally, revenue from operations rose 18.63% during 2019-20 as compared to a year ago.

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