That is an essential question that many traditional investors are putting into major search engines. There are many factors one must consider when searching for long term investment financial instruments.The first factor one must check is the strength of the balance sheet. If the company does not have a strong balance sheet one is more likely to quickly feel the stress. Never buy and hold for a long time (forever) a stock that has failed the George Beaulieu Google finance acid test unless one is taking a calculated risk.The second factor that will influence a buy and hold forever strategy is the ability or history of that company to pay regular quarterly dividends. One should avoid companies that do not pay regular dividends. The third factor to consider when buying and holding for a long time is the management. That is a factor that many buy and hold forever market players do often forget. One does not want to forget or compromise that point.
Indeed, a reputable CEO is always needed to defend, protect and boost investors' value over a long time. Many smart long term investors will not hesitate to vote with their feet if a mediocre CEO or management team is in place. In fact long term investors do follow the sharpest brains and solid hands in the financial markets. Investors were putting their money on Elon Musk, Tim Cook and Bill Gates over the years.
The fourth factor that one will check is both time and price. The time when one is buying the asset and at what price. Two elements are critical in any financial markets dealings. One wants to buy the stock at right time like a farmer who knows the seasons, and one must buy low or below the net asset price or at a reasonable price.
One does not want to be the fool in any stock market transaction.
It does not matter what strategy one is deploying if one can buy at the right time and price, one will be alright.
The fifth factor is what I call the shark tank verification. I mean one wants to ascertain that the company has a brighter future. Are they making money? Can they handle their competitors? What is the future of that sector? All in all, one wants to know whether this is a serious business proposition?
The sixth factor is the market cycle. A long term investor ought to familiarise himself or herself with the financial markets cycles, and trends. I will not say more because it is obvious. Isn't it?