Off Subject: I also read an article regarding the Nifty Fifty, which looked at there status in the 60's and where they are today. It will be interesting to see how times will change, but I doubt they will.
Of the top twenty or so performing stocks of the Nifty Fifty over the past thirty years, about half of them are drug companies, with Pfizer #1 of all fifty with an average 20% annual return. Merck, Brisol-Squibb, etc. were right up there, too.
Now obviously, SAP, DELL, MST, INTC weren't around back then and have become powers only recently as the world has changed similarly to what it did with the industrial revolution...we almost have a technology revolution going on in the 80's and 90's. Thus, Tech stocks may rival the Pharmas for superiority.
But given the baby boomers aging, etc., Drug companies are going to do quite well into the future. Earning growth and continued good sector margins will be the norm.
I, too, Lucius look for stocks that I can own for years, and like LindyBill believe that selecting a favorite 6 or 7 will yield the best results over time. Thus, I usually have 6 long, long termers that will be there down the road, and then I have a couple of very successful stocks that might fade as their niche or the sector trend within which they operate fades (like DEC/Polaroid); thus they must be watched more closely.
Right now Pfizer (25%), Lucent (12.5%), HD (12.5%), Dell (12.5%), and Airtouch (12.5%) are my long, long termers, with GAP (12.5%) and SAP (12.5%) the niche/trend plays that could turn into a long termers.
Thus, I'm 25% into Drugs, 25% into retail, and 50% in Technology/Communications. I'll add more along those percentages as time goes on, but want to boost the Pharma side of things. |
