Those
investing
with
their
retirement
nest
egg
in
mind
could
be
looking
at
what
to
buy
and
hold
for
the
long
run,
whether
they’re
stocks
or
funds.
Those
more
conservative
may
be
looking
at
funds
to
buy
in
the
interests
of
diversification.
“I’m
a
fan
of
using
diversified
managed
products
—
like
index
funds
—
as
retirement
saving
vehicles
rather
than
holding
individual
stocks,”
said
Susan
Dziubinski,
investment
specialist
at
Morningstar.
She
pointed
out
that
diversified
funds
are
also
low-cost
ways
to
get
broad
exposure
to
the
market.
“They
require
less
ongoing
monitoring
than
a
basket
of
individual
stocks
would,
too.
They’re
great
tools
for
accumulating
wealth,”
she
added.
But
investors
with
a
greater
risk
appetite
or
a
longer
runway
to
retirement
can
consider
stocks.
Specifically,
Dziubinski
told
CNBC
Pro
,
she
would
pick
the
stocks
of
companies
with
“significant
advantages
and
reliable
cash
flows
when
their
stocks
are
undervalued.”
“While
these
aren’t
necessarily
stocks
to
own
forever
(because
there’s
no
such
thing;
stocks
require
monitoring!),
these
are
companies
that,
given
their
competitive
advantages,
should
be
around
and
fighting
off
competitors
for
the
long
term,”
she
wrote
in
an
email
response.
CNBC
Pro
asked
the
experts
what
stocks
they
would
buy
that
are
suited
to
long-term
investing
for
retirement
purposes.
Dziubinski
named
three
stocks
which
she
says
look
undervalued
but
will
make
“great
long-term
investments”
at
current
prices.
Vijay
Marolia,
chief
investment
officer
of
Regal
Point
Capital,
also
shared
his
picks.
Starbucks
Dziubinski
says
Starbucks
‘
brand
and
pricing
power
have
earned
it
a
wide
economic
moat
rating,
which
according
to
the
firm
refers
to
a
company’s
durable
competitive
advantage.
“[It]
means
we
think
the
company
will
remain
competitive
and
out-earn
its
cost
of
capital
for
20
years
or
more,”
she
said.
In
the
short
term,
however,
Morningstar’s
analysts
believe
that
its
prospects
are
“cloudy.”
“But
Morningstar
doesn’t
think
we’ve
hit
‘peak
Starbucks’:
We
believe
that
the
firm’s
long-term
prospects
remain
eminently
possible,”
she
said.
Starbucks
is
currently
trading
at
17%
below
Morningstar’s
fair
value
estimate
of
$96.
Kenvue
Consumer
health
company
Kenvue
,
formerly
Johnson
&
Johnson’s
consumer
unit,
was
spun
off
and
publicly
listed
in
May
2023.
“Although
Kenvue
does
business
in
what
Morningstar
considers
to
be
a
fragmented
industry
with
intense
competition
and
ever-changing
consumer
preferences,
many
of
Kenvue’s
brands
are
the
global
leaders
in
their
respective
segments,”
said
Dziubinski.
Brands
under
its
portfolio
include
Tylenol,
Listerine,
Aveeno
and
Neutrogena.
Morningstar
analysts
forecast
that
Kenvue’s
five-year
compound
annual
growth
rate
of
sales
will
hit
3.1%
by
2028.
Its
stock
is
currently
trading
at
28%
below
Morningstar’s
fair
value
estimate
of
$25.50.
Nike
Nike
,
the
largest
athletic
footwear
and
apparel
brand
in
the
world,
faces
“significant
competition”
but
Morningstar
believes
it
can
maintain
market
share
with
its
branding,
reach,
products
and
digital
strategy.
“Morningstar
analysts
believe
it
will
continue
to
maintain
premium
pricing
and
generate
economic
profits
for
at
least
the
next
20
years,”
Dziubinski
said.
Morningstar
forecasts
that
the
company’s
compound
average
sales
growth
will
be
at
5%
over
the
next
10
years.
“Despite
some
recent
challenges,
we
still
think
there’s
plenty
of
revenue
growth
opportunity
for
Nike
in
emerging
markets,
too,”
she
added.
Wheaton
Precious
Metals
Regal
Point
Capital’s
Marolia
named
Wheaton
Precious
Metals
as
a
stock
with
long-term
potential.
He
says
it’s
set
to
gain
as
he
believes
the
world
is
only
still
in
the
early
stage
of
a
long-term
bull
market
in
precious
metals.
He
noted
that
Wheaton
has
a
unique
business
model:
it’s
not
a
miner
but
it’s
a
lender
to
the
mining
companies.
“Although
we’ve
already
seen
precious
metals
rally,
I
think
we’re
still
early
in
the
long
term
bull
market,”
said
Marolia,
adding
that
inflation
is
here
to
stay
for
the
foreseeable
future,
partly
because
of
the
U.S.
fiscal
situation
of
too
much
debt
with
higher
interest
rates.
Blackstone
Group
Another
stock
he
named
is
alternative
asset
manager
Blackstone
Group
,
which
he
described
as
“smart
and
solidly
consistent”
in
the
world
of
private
equity.
These
attributes
make
for
“the
best
kind
of
intangible
asset”
in
investing
for
the
long
term,
he
added.
“Their
ability
to
borrow
with
fantastic
terms
and
close
on
time
allows
them
to
have
continuous
deal
flow.
Their
ability
to
improve
operations
and
sell
off
non-performing
/
non-core
assets
helps
them
maintain
attractive
[internal
rate
of
return],”
Marolia
said.
