Let’s take a break from AI stocks, especially since we’re starting to see a sector rotation underway. We might be better off looking for investment ideas built for the long haul. The difference is that you buy AI stocks because they are moving fast. You buy long-term stocks because they last. Many investors conflate the two and get into trouble.
AI stocks will crash. It’s just a matter of time, though no one knows exactly when, or how much higher they’ll climb before gravity catches up. That makes them poor long-term holdings.
On the other hand, there are stocks that transcend time, what I call Lindy stocks. They’re often boring and slow growing, but they stand the test of time. No example beats McDonald’s. It’s a place where parents bring their kids, and one day those kids bring their own. It’s intergenerational and never goes out of style. Compare that to a fashion label tagged to an older generation and shunned by the next. This is what makes McDonald’s the kind of stock that lasts, because it stays relevant no matter who’s ordering.
