Likewise, Forever Stocks don't deal in financial wizardry like "collateralized debt obligations" and other hard-to-understand financial products. Their businesses are simple enough for a 5th grader to understand. Forever Stocks simply produce valuable, quality products that you probably use every day. And that's what leads these stocks to trounce the S&P 500 year after year.
Of course, as you can imagine, given the historic nature of these companies and length of the time they've been in business, there aren't many that truly qualify for Forever Stock status.
In fact, they're so rare that my colleague Jimmy Butts recently identified only seven of his absolute favorite Forever Stocks in total for
his latest report.
Unfortunately, out of fairness to Jimmy's subscribers, I can't reveal the names of these stocks today. But I can give you a couple of examples of Forever Stocks not named in his report to show you exactly what I'm talking about.
Forever Stock #1
One company that might be considered a Forever Stock is
CSX (NYSE: CSX). It's been a leader in freight rail transportation for more than 180 years.
Its roots go back to 1827, when the Baltimore and Ohio Railroad Co. (B&O) chartered the first common carrier train in the United States. During the Civil War, the railroad moved Union troops and supplies and was the target of attacks. Bridges were burned and rebuilt, tracks were torn up and replaced, telegraph lines pulled down and restored. By the end of the 19th century, the B&O had built almost 5,800 miles of track and connected Chicago and St. Louis to Baltimore, Philadelphia, New York and Washington, D.C.