Published on 7 Jan 2024 on Motley Fool via Yahoo Finance

3 Stocks That Could Create Lasting Generational Wealth

Many people think of long-term investing as buying and holding a stock for several years instead of succumbing to the psychological temptation of short-term trades. However, holding a stock for decades instead of years could create even bigger generational gains that you could potentially pass on to your children and grandchildren.

For example, the S&P 500 generated a total return of 102% over the past five years. But over the past 10 years it delivered a total return of 209%. If we stretch out that chart to two decades, its total return jumps to 528%.

Buying and holding a stock for decades can be a hit and miss strategy, since many companies simply aren't built to last that long. Nevertheless, I believe these three stocks (which I personally own) check all the right boxes as "buy and forget" investments: Amazon (NASDAQ: AMZN), MercadoLibre (NASDAQ: MELI), and LVMH (OTC: LVMUY).