The Most Boring Stock
By: Greg Maxwell
We may have uncovered the world's most boring stock…
A stock that despite downturns and market panics, just seems to keep on winning. Churning out returns and dividends year after year… decade after decade.
You see, it can be easy to get caught up in the whirlwind of lithium booms, cryptocurrencies, NFTs, and new companies IPOing every month — but buying into all that hype could actually be costing you.
In fact, a 2014 Fidelity study highlighted the one factor their top-performing portfolios all had…
Are you ready? All the top accounts at Fidelity were run by investors who had… forgotten they even owned the account.
They weren't adding risky tech companies left and right. They weren't dipping in and out of the market trying to time tops and bottoms. Nor were they buying and selling at a moment's notice, based every earnings transcript.
These investors bought stocks, and they simply forgot they even owned the account.
Talk about emotion-free investing.
So imagine… if YOU wanted to achieve these gains yourself. You may wonder what companies you'd buy?
Of course, shares like Google, Apple, Amazon, Tesla, Netflix can all be exciting… especially when things are going well and your account is showing green all across the board. However, what happens when the market (inevitably) cycles down – as markets always do, at some point?
Just look at Netflix as an example.
After hitting a high of almost $700 a share in 2021… Netflix now sits at $179.
Or Tesla, once sitting at $1,299… is now around $681 a share.
Or Facebook, which hit $374 in 2021… has now pulled back to $160.
It can be enough to test the nerves of even the most seasoned investor.
Meanwhile… one boring stock has continued to quietly deliver above market returns for decades.
So while all of the talking heads in the news focus on tech market crashes, inflation and supply chains… perhaps the best option is to stop listening and just be boring?
Which brings me to this stock we uncovered on the ASX. A "boring" stock that has all the hallmarks of a company that's first in class when it comes to investing, showcasing solid leadership and solid growth in their business.
I'll be honest: if you were a member of Motley Fool Share Advisor, you'd not only know the name of this stock, you'd also have had the chance to get in even earlier.
You see, the Share Advisor team is so confident in this company they've issued a buy alert to members …an incredible FOUR times!
Four time recommendations, while rare, can be incredibly profitable.
Those investors who took action the first time we recommended this stock back in March 2013 would have seen their stake more than double, with an annualised return of 8% a year. Or a total of 110%!
Or the second time, back in December 2015? Since then it's returned 8% a year – or a total of 68%.
Or even the third time? Back in August 2019 we recommended it, and have seen it grow 7% a year since…
While not all of our picks have performed as well, this rare signal has produced a total gain on our ALL our recommendations of this company for a total return of 188%…
Few companies on the ASX have such a history of outperformance where their balance sheet is a fortress, and where they've delivered above market returns for decades.
In fact, if you invested in January 2002 – that would have increased over 10 times, and by 2022 would have grown 13% a year since or a total of 1,054%. And if you go back even further – a $1,000 investment in this company in January 1981 would be worth $221,802 in January 2022. (That's a compound annual return of 14.5%)
Imagine getting growth over the long term with a stock like that.
And it gets even better – because not only have they been outperformed the benchmark…
But in the last 20 years they've never failed to pay a dividend. Not only that, but they've kept dividends either stable or increased the payout. Putting it in a class of its own when it comes to ASX-listed dividend paying companies.
And right now could be the time to be buying. That's because a prominent insider just increased his stake in the company by an incredible 30% – with a purchase of $268,000 in additional stock.
Which reminded me of an old saying on Wall Street: there are many reasons why insiders at a company sell their shares, but there is just one reason why they buy…
Because they believe that the shares will go up.
When you see insiders go on all-out stock shopping sprees, I'm tempted to think that hardworking individual investors like you and I might be wise to do the same…
Look, I understand this all may sound too good to be true…which is exactly why I want to show you the hard numbers behind this incredible stock and invite you to hear more about this company directly from our analysts – that way, you can decide for yourself if you want to buy shares of this company for your portfolio.
You can get all the information and extensive research in our new report, simply called "Our Set and Forget Stocks". In this report you'll not only get all the details on the company I've mentioned above, but you'll also get the full write ups on three other picks we think you could buy now and "put in the bottom drawer".
There's just one catch:
The details of this exclusive stock research is only shared with members of Motley Fool Australia's flagship investing service, Motley Fool Share Advisor.
Share Advisor is the investing service created to provide easy-to-follow, monthly stock recommendations to individual investors. And here's the best part: Right now, we are running a special so new members can get access to Share Advisor for less than $3 a week!
That's right. For less than you probably spend on a cup of coffee, you can learn not only the name of this "Set and Forget" stock, but you'll also get access to every other recommendation ever made inside Share Advisor.
Enter your email address below to find out more:
Returns as of 1 July 2022. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Netflix, and Tesla. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, Apple, and Netflix. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. For more information about The Motley Fool see our Financial Services Guide. All returns cited are hypothetical and based on the percentage change between the stock price at the time of recommendation and the current or sell price (if the position has been closed) at the time of publication. Brokerage, taxes and any other associated costs are not taken into account. Please remember that investments can go up and down. Past performance is not necessarily indicative of future returns. Performance figures are not intended to be a forecast and The Motley Fool does not guarantee the performance of, or returns on any investment. Any money back guarantee is strictly limited to the subscription price paid for the product.