What is the ideal of holding stocks forever ?

I was wondering what is the thought of holding a stock forever or long term if the stock does not pay dividends, hardly splits, and the price of the stock goes up and down. Take for example ebay, amazon, apple.

Say i buy stocks of ebay for $ 32 a share. If i hold the stock for 18 months and it does not pay dividends, did not tear, and the price remain the same.
So lets say in the end 18 months the stock is price at the same as i brought it for $ 32.
18 months of holding the stock and i gain no profit. lose no money.
Couldn’t i take my money and invest it in a CD for 18 month and collect 5% interest.
What is the thought of holding a stock long term if the stock does not pay dividends, hardly splits, and the price of the stock stay the same.

Thanks on advance.

Answer by Zoo Station
Well how do you know that its price will be $ 32 in 18 months? It may be the same, it may be higher, it may be lower. The reason behind buying a stock is because you reckon it is going to go higher and/or may maybe be paying a excellent bonus.

And just because a stock pays a bonus doesn’t mean it is a excellent stock to buy and vice versa. Also, you seem to imply that stock splits give investors profits. But stock splits double everyone’s shares and cut the price of the stock in half, so they don’t exchange anything.

Answer by Adam J
Well, that’s simply a risk you take. On average, over the long term, excellent companies should provide solid returns to investors, but they may trade flat for extended periods of time. For example I suspect that JNJ will continue to prosper over the long term, but its been hovering around 60 for years.

Answer by slavaret2
None. It’s a fallacy. You only hold a stock for as long as it’s making you $ $ . There is always something going up and something going down to profit from.

Give your answer to this question below!

Hey, for our economics class we are before a live audience this stock market simulation game (VSE) and there are about 40 days left in it. I currently have stock in Apple and Nike and have $ 2,000,000 of virtual money to play with (stock prices are the same as in real life) and our wealth is leisurely by whole equity. I was looking for advice for what to buy and sell according to stock projections for the next 40 days or so. Thanks

Answer by Lumiere
On Feb 8, 2010 we have recommended and tweeted the later US stocks as the Best Stocks To Buy Right Now

• Apple (AAPL, $ 194.12)
• Skyworks Solution (SKWS,$ 13.51)
• Intel(INTC,$ 19.35)
• Goldman Sachs Grp(GS,$ 151.1)
• Maxim Integrated Harvest Inc.(MXIM,$ 17.44)

Check where they are now…and they will still make money

For more details, visit http://myhotstockpicks.blogspot.com and http://www.stockonrise.com/free-stock-analysis.html

Answer by Jiternity
If you want to learn stock markets seriously then don’t question for which stocks to buy, rather

1. make a list of fundamentally excellent stocks,
2. study their past price moves,
3. filter out under valued stocks.
4. and check out there past quarterly results
5. small list stocks that have posted profits consistently.
6. buy them.

http://twitter.com/stock2day

Give your answer to this question below!
Students to make stock portfolio
When Midwestern State University finance majors start investing $ 450,000 of real money for the school’s new investment portfolio, it’s likely that they’ll diversify their stock buys across a wide range of industries, according to Adam Lei, MSU assistant professor of finance.
Read more on Wichita Falls Times Record News

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