Dear FutureMoneyTrends.com Member,
Today’s markets don’t have the best of discounts, and finding a good deal, especially on a blue chip, is not easy. However, there is one stock that I have been happy to buy all year. It trades for less than 10x forward earnings and has nearly a 9% free-cash-flow yield.
The company is going through a major transition, which is why its shares are trading so cheaply. I consider this a Forever Stock, because it meets a strict criteria:
- They have a long history of a steady return and dividends.
- They will absolutely do business with my grandkids. They sell a product and service that will be around in 30, 50, or even 100 years.
- They dominate their industry.
This company has more than a century of history of providing business solutions. And contrary to what many investors think today, who are selling it or think their business is washed up, this company has been in a constant transition.
Forever Stock Suggestion: International Business Machines (NYSE: IBM)
It’s a company that is in constant transition, providing solutions to the world’s problems, with 12 research laboratories across 6 continents. IBM holds the most patents on record and has generated more patents than any other company for 22 consecutive years!
Here is what I mean by constant transition…
Notable inventions: ATM, floppy disk, hard drive, magnetic stripe card, UPC bar codes, copper wiring in semiconductors, and Watson artificial intelligence. IBM’s inventions and services are generating a higher-quality revenue stream. But what investors fail to appreciate is that IBM, for the past 5 years, has been off-loading old business products in order to shift to new business solutions and demands.
Before anyone buys IBM, please take 5 minutes to Google their history of products and services. You will see that IBM was never just 1 business, or as most think of it, a computer business. IBM has provided everything from meat grinders and rifles to semiconductors.
IBM is a cash-rich business who dominates the industries they are involved in. They are involved in things like high-performance computing, banking, social media, software, semiconductors, data center communications, digital security, aerospace, automotive, chemicals, healthcare, media, insurance, and government systems.
For less than $200 a share, IBM is a great deal, and I believe owning it will help our members get wealthier over time. This blue chip has an unfair advantage, and for this reason, we want to own IBM.