2 Stocks That You Could Buy And Hold For More Than 5-Years

Stocks have given pretty decent returns over the last 1, 3 and 5-years. We believe that close to double-digit returns is possible in the coming years in most of these stocks. Here are 2 stocks that you could buy and hold for the next 5-years for decent returns.

The parameters when you look to buy stocks in the long-term

If you are looking at investing in stocks for more than 5-years, there should be a few considerations. The topmost of this is steady growth rates, year on year, which will push investors to buy. Apart from this reasonable valuations, dividend yields that are decent would be other parameters. We believe that there are a few stocks that fall in the category to enable investors to buy these stocks for the long-term.

Buy the stock of HDFC Bank for the long-term

A decade back there was an investor advisor who had suggested to me to buy the stock of HDFC Bank. My thought was that the stock was over valued. In the last 1 decade I lost the opportunity and HDFC Bank during that period managed to show 20 to 25 per cent growth every year.

The growth for the bank in net profits for the last quarter ending Dec 31, 2021 was pretty decent at 18%. For long term stock pickers, the only way one can generate returns is growth every quarter. It is extremely doubtful that there would be a de-growth at any stage in HDFC Bank. The stock has fallen from levels of Rs 1725 to levels of RS 1525. At these levels the stock becomes attractive as we believe the growth story would continue at HDFC Bank.

The shares of HDFC Bank were last seen trading at Rs 1527 on the NSE.

Reliance Industries: A good stock to buy

This is another stock where we believe the parameters of growth are likely to be fulfilled for the next 5-years. With oil to chemicals business, retail and Jio Platforms all firing, we believe growth is intact for the next 5-years and beyond. In fact, if the Saudi Aramco deal go through for a stake sale, the company would be extremely cash rich. In any case the liquid holdings of the company are even more than its existing debt, so net and net it is debt free.

At the moment, it is hard to find any reason, why growth at the company would not happen. There have also been some small acquisitions that the company has been making. There is no denying that the stock price over the last couple of years has surged. However, investors are willing to pay a higher p/e for stocks that are showing growth.

At the moment we do not see much headwinds for the stock of Reliance Industries and hence recommend a buy.

Disclaimer

Investing in stocks is risky and investors should exercise caution before investing. The author and Greynium Information Technologies Pvt Ltd should not be held responsible for any losses based on the above article. The author and his family do now own shares either in Reliance Industries nor in HDFC Bank at the time of writing this article.