Investing for Tomorrow

13 May 2017 12:42
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Recently, a friend at work asked my opinion about buying Facebook (FB) in a Roth IRA for his adult children. My response was it sounds like a decent investment and possibly a motivator for his young adult children to save. He responded that he plans on keeping the accounts a secret and surprise them with it 20-30 years later when the FB investment would be worth a small fortune. Wait…what?

This made me wince and change my response entirely. You want a set-it and forget-it investment in one stock for 20-30 years! While Facebook is currently a great technology company you have no idea if it will be relevant that far into the future. 20 years ago Microsoft was the king of technology and today they are trying to rediscover their mojo to remain relevant. Facebook could be in the same or worse position that far down the line. He appreciated the comment and understood the gravity of his 20-30 year time frame and that maybe Facebook was not the right long term investment.

This little exchange with a co-worker got me thinking, what industries today will still be relevant in 20-30 years that I should be basing my long term portfolio on? After thinking it over here is my list:

  1. Toiletries - Folks will still be going to the bathroom and showering and still coveting their personal grooming products. Toilet paper is still king of the bathroom.
  2. Garbage & Recycling - People have been making trash for thousands of years and will continue on.
  3. Medicine - Over-the-counter, first aid, or prescription medication. Can’t stop folks from getting hurt or sick.
  4. Water - Unless we somehow evolve into a new species we will need clean drinking water.
  5. Shipping of Goods - Even as we evolve in our shopping trends someone (or some robot) still needs to move goods from point A to point B.
  6. Communication - Unless we develop ESP there will still be a need to communicate with others.
  7. Food - Food has been a necessity since the dawn of time.
  8. Shelter - You have to sleep safely somewhere.

Did I miss any? Let me know

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