Stocks Forever Index: Cheap buying opportunity

The saying "quality has its price" generally applies on the stock market, too. Highly reliable blue chips are usually valued somewhat higher than companies that have yet to prove they can operate profitably even in difficult economic times. However, in the current stock market environment, some blue chips are truly available at bargain prices.

While numerous riskier stocks continue to march steadily upward, numerous conservative stocks are being ignored. This is clearly evident in the current price performance of the Stocks Forever Index. It recently declined significantly, even though the DAX, Nasdaq, and other major stocks continued their record-breaking run. For long-term value investors, this is naturally a very good entry point into excellently positioned companies that have repeatedly demonstrated their financial reliability in the past.

The Stocks Forever Index brings together ten companies whose dominant market positions are unlikely to change much in the coming decades. The index focuses on the healthcare sector, with Johnson & Johnson, Thermo Fisher, Danaher, Novo Nordisk, and UnitedHealth. However, with spare parts retailer Autozone, industrial gas specialist Linde, food giant Nestlé, and technology giants Apple and Microsoft, good diversification is ensured—especially since the healthcare stocks are by no means exclusively comprised of pharmaceutical stocks. Thermo Fisher, for example, specializes in a broad range of laboratory equipment, diagnostic products, chemicals, reagents, as well as specialized software solutions and services for healthcare research.