Most of my posts revolve around short term trades and option plays, but now I am going to give you my long term holdings. Long term holdings are stocks I have held or plan to hold for one year or more to capture profits from long term growth trends, dividend yield, or both. Having a long term holdings portfolio in addition to a trading portfolio and options portfolio is as key to diversification as spreading your investment in different sectors of the market. The following is a list of my favorites.
Note: A majority of my long term holdings are now becoming option plays as well through selling covered calls against the stock which is the safest way to profit from options.
Provident Energy Trust: (PVX) This is a steady income machine with an almost 10% dividend yield and has a dividend distribution monthly! Great holding for tax deferred account.
Berkshire Hathaway (BRK.B) Now that the stock has split bringing the price down to an affordable level and is option-able this is a no-brain er for a long term holding as a no fee mutual fund with the best fund manager free can buy, Warren Buffett. A quick computation shows me that The operating business is worth at least $30 a share and it's Investment portfolio at least $60 a share leaving me a value of roughly $90 a share and it is only trading at around $80 right now.
Veolia Environment (VE) This is the largest water treatment company in the world meaning it's great cash flow should continue as long as the world needs water, which is forever! It's close to it's 52 week low so we should see some appreciation in the stock while we collect that 5.5% yield.
Petro China (PTR) You know my portfolio wouldn't be complete without exposure to China. PTR has huge EPS, a good steady dividend, and a strengthening Yuan that will all help this one continue it's climb higher.
China Mobile (CHL) I round out the group with my favorite of the group and another China play. This will be the big long term mover as only about 50% of the Chinese population currently have cellular service compared with close to 90% in the U.S. so look for tens of millions of new subscribers in the next year or two. As this move happens we can collect the 3.5% dividend and sell well out of the money covered call to create income. All of this companies assets and revenue are yuan based and will appreciate in value to with the yuan.
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