Please ensure Javascript is enabled for purposes of website accessibility

My Stock Pick for the Next 50 Years

In my final column for Cabot Wealth Network, I reveal my stock pick for the next 50 years - one that could reach $1,000 in the next five years.

In my previous Wall Street’s Best Daily, I offered several ideas to help you to become a better investor. Stop looking for free research and advice on the internet. Ninety-nine percent of the free advice on the internet is worthless. You will get frustrated and you will get what you pay for – nothing.

Do yourself a big, big favor. Spend a few bucks to get stock recommendations and advice that will help you achieve your financial goals. Since I started at Cabot Wealth 15 years ago, my wife and I have increased our portfolio eight-fold. I know you’re thinking that it’s a lot easier for Roy and his wife to increase their portfolio by a huge amount, because they spend a lot of time following the stock market. But many of Cabot Benjamin Graham Value Investor subscribers have increased their portfolios by similar amounts. I have been able to pass along my easy-to-follow advice to subscribers who have stayed with me for many, many years. My tenure with Cabot has been satisfying for me, and very rewarding for my subscribers.


Tim Lutts, president of Cabot Wealth, has assembled the best investment analysts in the business. Your purchase of any of the Cabot letters will help you achieve better-than-expected portfolio gains. Cabot analysts cover all types of stocks from low-risk value and dividend stocks to hot growth stocks and options. You’ll find the price of each of the investment newsletters surprisingly low, too! Click here to find out more.

Now, for Today’s Stock Pick ...

Fifty years ago, my grandfather passed away at the age of 90. He was a businessman who knew little about the stock market, but he decided to take the plunge early in life with the hope that investing early and often would eventually lead to meaningful dividend income later in life. Indeed, his holdings added up to a tidy sum, because grandpa Ward learned how to buy good quality stocks. And it was evident that he rarely sold any of his stocks.

At the age of 90, he continued to hold stocks that he had purchased more than 50 years before. I can remember some of his long-term holdings, which included Standard Oil of New Jersey, Standard Oil of Ohio, and Standard Oil of California. He also liked utility stocks and invested in Boston Edison, New England Electric, and Southern California Edison. All of these stocks were purchased before World War I. Good old grandpa held onto his stocks through two world wars, the depression, and several recessions and amassed huge gains despite the many obstacles.

I like to tell this story, because you too can start small and amass a fortune. You just need to get started now and keep investing throughout your lifetime. This brings me to my stock pick for the next 50 years: a stock that you can hold without regard to the ups and downs of the stock market or the drama created in Washington and other parts of the world. Buy it for your own portfolio or start your children or grandchildren on the path to better lives.

Facebook: The Best Buy-and-Hold Stock

Facebook (FB) provides an opportunity for you to make a lot of money during the next several decades. The company doesn’t pay a dividend now, but I’ll bet Facebook will start paying dividends within the next five years. In addition, I predict FB stock will reach $1,000 within 10 years – maybe within five years!

Facebook is the world’s largest social media company. Facebook enables people to connect, share, discover, and communicate with each other on mobile devices, personal computers, and other electronic gadgets worldwide. Facebook is led by Mark Zuckerberg, the 33-year-old founder, chairman, and CEO. Mr. Zuckerberg is one of the leading innovators of our time.

Facebook recently introduced Marketplace, a place for Facebook users to buy and sell items. Marketplace has launched in four countries and will expand rapidly during the next few months. Marketplace apps are now available on iPhone and Android devices, and a desktop version will be introduced soon.

Management is also focused on adding video to all of Facebook’s products. Video is accelerating the company’s advertising revenue. Facebook users are spending a lot more time watching videos on Facebook and its photo-sharing app Instagram. The availability of video postings on the company’s Facebook and Instagram platforms is attracting new users by the millions. The number of Facebook users is now two billion.

Facebook will likely produce 30% annual sales and earnings growth during the next five years, and 20% to 25% growth thereafter. The company’s current P/E (price to earnings ratio) is a hefty 32.2, but the forward P/E, based on next 12-month EPS, is a much more reasonable 25.8.

Facebook is a great company with a proven track record and exceptional management. The company’s balance sheet is pristine with no debt and $35 billion in cash for future product development and expansion. The recent dip in FB’s stock price presents an excellent buying opportunity. Don’t miss it!

Until next time, be kind and friendly to everyone you meet.


J. Royden Ward has spent his entire career seeking strong investment returns for his clients while keeping risk low. In 1969, he developed a computerized model of stock selection based on formulas created by investment legend—and Warren Buffett mentor—Benjamin Graham, and since 2003, he’s been spreading his wisdom far and wide as chief analyst of Cabot Benjamin Graham Value Investor.