My Favorite Forever Stocks

Yesterday, we delved into the old-fashioned idea of long-term investing.

Given that most investors hold stocks for just a few minutes, I find it worthwhile to take the opposite approach.

Today, I’m sharing my top forever investments—stocks I plan to keep for at least the next decade.

Let’s dive right in.

Oil & Gas

Back in 1980, oil and gas comprised a massive 30% of the S&P 500. Now, that figure has shrunk to roughly 3.5%.

In June 2025, I originally shared the chart below. Since then, energy has risen to about 3.5%—still a tiny fraction.

Source: Tavi Costa

In contrast, the Magnificent 7 tech giants make up 35% of the S&P 500. Only 7 companies represent over a third of a 500-stock index! And including the top 41 AI firms pushes that to 49%. That’s a serious concentration risk.

The 3% figure caught my eye. Upon a closer look, it became clear the world hasn’t invested nearly enough in oil production over recent years. Major oil discoveries have dropped about 60% since the early 2010s, when shale was booming.

There’s a common misconception that oil belongs to the past and green energy is the future. This couldn’t be further from the truth. Demand for oil remains on the rise, and alternative sources aren’t ready to replace it.

Much of the world’s easy-to-access oil is already extracted. Plus, initiatives like the green new scam and various ESG mandates have led many asset managers to abandon oil and gas completely—a process known as divesting.

But I see a chance here.

Oil Picks

Unsurprisingly, my top long-term oil stock remains Petrobras (PBR or PBR.A).

Petrobras, Brazil’s state-controlled oil company, is the cheapest major player globally. While political risk exists due to government ownership, the attractive dividend yield and low valuation outweigh these concerns. Besides, Brazil’s stock market is booming, and any mistreatment of PBR shareholders would likely halt that progress. Furthermore, the nation appears poised to elect a more conservative, pro-business president soon.

To be clear, I’m not suggesting aggressive buying at today’s levels. Since we first highlighted Petrobras last year, the stock has more than doubled, and we’ve been bullish on it for 18 months.

Yet, should conflicts in Iran and Ukraine conclude and prices fall, that would present a great buying opportunity. Petrobras can profitably produce oil at $35 per barrel and is relatively insulated from turmoil in the Middle East—indeed, it may even benefit from it. The company also runs 11 refineries.

My approach is straightforward: reinvest dividends and hold for decades.

If you want a more stable U.S. oil stock, ExxonMobil (XOM) is a solid choice, and I hold it as well.

For those subscribing to any of Jim Rickards’ services, watch their energy selections closely—Jim and Dan have been on a roll. Their sector expertise is exceptional.

Emerging Markets (EM)

Long-time readers might groan: Emerging markets again?

Yes. I love purchasing growing companies trading under 10 times earnings, yielding 5%, and backed by irreplaceable assets. Emerging markets remain the only place to reliably find this today. The S&P 500 yields a mere 1%, which signals it’s overpriced for me.

I’ve spoken enough about Brazil lately (see this if you want a refresher), so I’ll be brief. The iShares Brazil ETF (EWZ) is the easiest vehicle to gain exposure. I intend to keep my Brazilian holdings for years and possibly decades.

Note: if our Brazil picks achieve a 4x return over four years, it might make sense to take some profits. Still, I plan to hold a core stake in Brazilian stocks like PBR and VALE indefinitely.

Another EM investment I favor for the long haul is the Cambria Emerging Shareholder Yield ETF (EYLD). This fund focuses on companies delivering total shareholder yield—a combination of dividends, buybacks, and debt reduction.

EYLD holds 108 companies, predominantly in Asia, including Vietnam, South Korea, Taiwan, and about 16% in China. These firms are primarily industrial and often aren’t available in U.S. markets, providing strong diversification.

I’ve owned this ETF for over eight years. Even during rough patches for EM, it consistently delivered solid yields, which I reinvested. Its current yield is roughly 4.3%, with an expense ratio of 0.6% annually.

This year, I plan to add more EYLD shares within my 401(k).

Those make up my favorite forever stocks for now. If I add others to the list, you’ll be the first to hear about it.