As a long-term fundamental investor, I am interested in finding stocks that I can simply buy and never have to worry about selling. Such companies are difficult to find, however, because there are so many companies that cannot keep up with the times. We have seen so many market leaders from General Motors (NYSE:GM), Sears (NASDAQ:SHLD), and Kodak collapse under its own weight because it became slothful and so ingrained in internal culture that it failed to innovate.
However, not every company is like that. There are a handful of companies out there that provide products to the market that people need and want and that do so efficiently so as to benefit shareholders. These are companies that you need to buy on weakness and, given their track records of value creation, you can count on them bouncing back.
1. Exxon Mobil (NYSE:XOM)
Exxon Mobil is my top pick for this list. While it is trading near its all-time high at its current valuation, it is one to put on your radar and to buy if we get a market pullback. Exxon Mobil has been creating shareholder value for decades. It has a long track record of making value-generating investment decisions while rewarding long-term shareholders. If you look at its year-over-year returns, they are generally unimpressive, but if you start to look at the company’s returns over a 30 or 40 year period you’ll see what I am talking about. The company supplies an essential product to the market and it does so in a way that benefits shareholders over the long run. This is a stock that can be bought on a strong market pullback while everybody else is panicking and selling everything. Exxon Mobil will survive through even the worst imaginable recessions, and it will thrive during the boom times. It is therefore a must for any portfolio.