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Zacks Value Trader Highlights: Bank of America, The Sherwin-Williams, NVIDIA, Berkshire Hathaway and VOO
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For Immediate Release
Chicago, IL – August 21, 2023 – Zacks Value Trader is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here: https://www.zacks.com/stock/news/2138235/investing-lessons-from-rich-retirees)
Investing Lessons from Rich Retirees
Welcome to Episode #340 of the Value Investor Podcast.
(0:30) - Building A Strong Retirement Portfolio: How Much Do You Need?
(12:45) - Where Should You Invest For Long Term Investments?
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
Recently, the Wall Street Journal ran an article called "Here's What a $5 Million Retirement Looks like in America." In the article, it highlighted 5 couples and singletons who had substantial investment portfolios, over $1 million, and several had over $4 million portfolios. That's impressive. They are rich.
How'd they do it?
None of those in the article were best selling novelists, movie stars, or professional athletes. That makes it seem even more obtainable for you and I. If they can do it, why not us?
Lessons from Rich Retirees
Those featured in the article seemingly had similar paths they followed to achieve this incredible wealth. This included,
1. They started investing early
2. They maxed out their 401ks
3. They invested in equities, both individual stocks and index funds. You don't have to get fancy.
Keep it Simple
The stocks listed in the article were big caps that you and I could also own. When Tracey has talked with her friend Ed, another rich retiree with a million-dollar stock portfolio, he too owned basic, large cap stocks, many of which paid dividends.
None were IPOs or a small cap stock that was largely unknown to most investors. These rich investors had kept it simple.
Warren Buffett has owned Bank of America in the Berkshire Hathaway portfolio for years. It's up 108.3% over the last 10 years, but that's underperforming the S&P 500 which is up 170% during that same time.
Bank of America pays an attractive dividend again, however, now yielding 3%, which gives long-term investors even more firepower for compounding.
Should value investors be considering a bank like Bank of America again?
Sherwin-Williams rarely gets much attention on the business shows like CNBC or Fox Business. But Tracey's friend Ed has owned it for decades. Over the last 10 years, shares of Sherwin-Williams are up 437.8% with the dividends reinvested. That's an annualized return of 18.3%.
$10,000 invested in Sherwin-Williams in 2013 would be worth $53,780 in 2023.
NVIDIA was mentioned in the article as a holding by one of the rich retirees. If you had bought NVIDIA just 10 years ago, it would have gone up an astounding 11,786%.
But in 2022, shares sold off so it now has a 2-year return of "just" 117%. But NVIDIA is a leader in AI and revenue is expected to rise 59% this fiscal year to $43 billion from $26 billion last year. That's impressive.
Is NVIDIA a good buy-and-hold stock for long-term investors?
Berkshire Hathaway shares have been hitting new all-time highs in 2023. For investors looking for a way to track Buffett's moves, including buy-and-hold, why not just buy shares of Berkshire's B shares?
Shares of Berkshire Hathaway are up 218.9% over the last 10 years which beat the S&P 500 which was up just 170% during that same time. Over 20 years, Berkshire is up 600.9% versus the S&P 500 gaining 338.5%.
Many of the rich retirees said they owned "indexes." They didn't say which index but the most common one is the S&P 500. The Vanguard 500 Index is one of the most common choices for those who want to own the S&P 500 in an ETF because it has a low expense ratio of just 0.04%.
Tracey owns shares of VOO in her own personal portfolio. It's up 14.1% year-to-date but hasn't yet hit another new all-time high this year. Buffett is a big fan of owning the indexes, like the VOO.
Should the VOO be the first step in growing your own million-dollar portfolio?
What Else Do You Need to Know About Retiring with Millions?
Tune into this week's podcast to find out.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros.
Follow us on Twitter: https://twitter.com/zacksresearch
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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Zacks Value Trader Highlights: Bank of America, The Sherwin-Williams, NVIDIA, Berkshire Hathaway and VOO
For Immediate Release
Chicago, IL – August 21, 2023 – Zacks Value Trader is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here: https://www.zacks.com/stock/news/2138235/investing-lessons-from-rich-retirees)
Investing Lessons from Rich Retirees
Welcome to Episode #340 of the Value Investor Podcast.
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
Recently, the Wall Street Journal ran an article called "Here's What a $5 Million Retirement Looks like in America." In the article, it highlighted 5 couples and singletons who had substantial investment portfolios, over $1 million, and several had over $4 million portfolios. That's impressive. They are rich.
How'd they do it?
None of those in the article were best selling novelists, movie stars, or professional athletes. That makes it seem even more obtainable for you and I. If they can do it, why not us?
Lessons from Rich Retirees
Those featured in the article seemingly had similar paths they followed to achieve this incredible wealth. This included,
1. They started investing early
2. They maxed out their 401ks
3. They invested in equities, both individual stocks and index funds. You don't have to get fancy.
Keep it Simple
The stocks listed in the article were big caps that you and I could also own. When Tracey has talked with her friend Ed, another rich retiree with a million-dollar stock portfolio, he too owned basic, large cap stocks, many of which paid dividends.
None were IPOs or a small cap stock that was largely unknown to most investors. These rich investors had kept it simple.
1. Bank of America (BAC - Free Report)
Warren Buffett has owned Bank of America in the Berkshire Hathaway portfolio for years. It's up 108.3% over the last 10 years, but that's underperforming the S&P 500 which is up 170% during that same time.
Bank of America pays an attractive dividend again, however, now yielding 3%, which gives long-term investors even more firepower for compounding.
Should value investors be considering a bank like Bank of America again?
2. The Sherwin-Williams Company (SHW - Free Report)
Sherwin-Williams rarely gets much attention on the business shows like CNBC or Fox Business. But Tracey's friend Ed has owned it for decades. Over the last 10 years, shares of Sherwin-Williams are up 437.8% with the dividends reinvested. That's an annualized return of 18.3%.
$10,000 invested in Sherwin-Williams in 2013 would be worth $53,780 in 2023.
Does Sherwin-Williams still have further upside?
3. NVIDIA Corp. (NVDA - Free Report)
NVIDIA was mentioned in the article as a holding by one of the rich retirees. If you had bought NVIDIA just 10 years ago, it would have gone up an astounding 11,786%.
But in 2022, shares sold off so it now has a 2-year return of "just" 117%. But NVIDIA is a leader in AI and revenue is expected to rise 59% this fiscal year to $43 billion from $26 billion last year. That's impressive.
Is NVIDIA a good buy-and-hold stock for long-term investors?
4. Berkshire Hathaway (BRK.B - Free Report)
Berkshire Hathaway shares have been hitting new all-time highs in 2023. For investors looking for a way to track Buffett's moves, including buy-and-hold, why not just buy shares of Berkshire's B shares?
Shares of Berkshire Hathaway are up 218.9% over the last 10 years which beat the S&P 500 which was up just 170% during that same time. Over 20 years, Berkshire is up 600.9% versus the S&P 500 gaining 338.5%.
Should Berkshire Hathaway be on your short list?
5. Vanguard 500 Index Fund (VOO - Free Report)
Many of the rich retirees said they owned "indexes." They didn't say which index but the most common one is the S&P 500. The Vanguard 500 Index is one of the most common choices for those who want to own the S&P 500 in an ETF because it has a low expense ratio of just 0.04%.
Tracey owns shares of VOO in her own personal portfolio. It's up 14.1% year-to-date but hasn't yet hit another new all-time high this year. Buffett is a big fan of owning the indexes, like the VOO.
Should the VOO be the first step in growing your own million-dollar portfolio?
What Else Do You Need to Know About Retiring with Millions?
Tune into this week's podcast to find out.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
See Stocks Free >>
Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor of the Insider Trader and Value Investor services. You can follow her on twitter at @TraceyRyniec and she also hosts the Zacks Market Edge Podcast on iTunes.
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros.
Follow us on Twitter: https://twitter.com/zacksresearch
Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch/
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com/performance
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.