Editor's Note: We're sharing Bill's column with you today because it tells you how to buy and use a must-have stock that belongs among every investor's core holdings. For more of Bill's "must-haves" – and effective strategies to use them – subscribe to Private Briefing. Money Morning Members get a 50% discount.
For a change of pace today I wanted to tell you a personal story.
Twenty years ago, when I was working as a business reporter in upstate New York and covering Eastman Kodak Co. (NYSE: KODK) for Gannett Newspapers, I decided it was time to start saving for a house.
So I concocted a plan.
I wasn't exactly getting rich as a journalist, but I was doing okay. Even so, I knew I'd need an actual plan that I could commit to if I really was going to amass the needed down payment.
My plan was simple. In the years that followed, every time my bosses gave me a raise, I started a new mutual fund.
By the time I got a job at The Baltimore Sun in 1998 – and Robin and I moved to Maryland – I had more than $25,000 set aside from this plan and some other money I'd saved. And we could start looking for our first house.
I also learned a valuable lesson: A little discipline can take you a long way.
I was thinking about this the other day when Radical Technology Profits Editor Michael Robinson and I were talking about the "one investment you should never sell."
It's a perfect investment for house down payments, college funds, retirement, a vacation house, a boat or the cruise of a lifetime – in short, the kind of big-ticket purchases that come along a couple times during a lifetime.
Let's take a look…
A "Desert Island" Holding
As we're going to show you, this is a fund that you should be looking to own for many years.
"Bill, this is a great foundational type of investment," Michael told me. "You can use it to build around. You can use it to be the recipient of regular contributions and to achieve some of those long-term 'life goals' you referred to. The shrewdest investors will look at this as an investment they'll want to own for a long, long time – if not forever."
Let's show you what this fund is. Then we'll show you how to use it.
ONEQ is dominated by big-cap tech, of course. Its Top 10 holdings are a Who's Who of tech leaders in mobile, the Web, cloud computing, biotech and e-commerce.
In fact, this ETF is a way to grab yourself stakes in Apple Inc. (Nasdaq: AAPL), Microsoft Corp. (Nasdaq: MSFT), and chip giant Intel Corp. (Nasdaq: INTC). It also includes biotech leader Gilead Sciences Inc. (Nasdaq: GILD), e-commerce king Amazon.com Inc. (Nasdaq: AMZN), and social networking icon Facebook Inc. (Nasdaq: FB).
Though ONEQ – by definition – is focused on technology, the fund also provides some nice diversification. The ETF holds about 1,940 stocks, 46% of which are tech related. Consumer cyclicals, financial services, and industrials make up another 25% of ONEQ's holdings.
In the non-tech part of the portfolio, we're talking about such firms as coffee giant Starbucks Corp. (Nasdaq: SBUX), Baltimore-based mutual fund player T. Rowe Price Group Inc. (Nasdaq: TROW), and Peterbilt truck maker PACCAR Inc. (Nasdaq: PCAR).
The ETF also holds some alluring midcap stocks, including triple-digit Private Briefing winner NXP Semiconductors NV (Nasdaq: NXPI) and contrarian recommendation Yandex NV (Nasdaq: YNDX), the Russian Internet player.
And if you employ this single fund like I did during my down payment-saving days, you can have the same results – but on a grander scale.
In fact, I like to say that you're putting your savings program on "autopilot."
And if you employ this strategy long enough, and with a great enough financial commitment, you can achieve your goals and even become wealthy – automatically.
Use This Simple Plan to Get In
About the Author
Before he moved into the investment-research business in 2005, William (Bill) Patalon III spent 22 years as an award-winning financial reporter, columnist, and editor. Today he is the Executive Editor and Senior Research Analyst for Money Morning. With his latest project, Private Briefing, Bill takes you "behind the scenes" of his established investment news website for a closer look at the action. Members get all the expert analysis and exclusive scoops he can't publish... and some of the most valuable picks that turn up in Bill's closed-door sessions with editors and experts.