Joseph Carlson: 3 Stocks I’m Buying Today

For long-term investors, there are three simple steps that can lead to effective results. First, investors should buy good companies. That means investing in shares of businesses that are easy to understand, and offer a valuable product or service that can adapt to changes in the economy over time.

The second step is to simply not overpay. That can be tougher than it sounds. In a roaring bull market, valuations get stretched.

And, in a bear market, the fear of a further decline makes it tempting to sit on the sidelines.

The final step is to do nothing. That avoids getting in and out of the market at the worst possible time. And it allows for great companies to compound their wealth.

One company that may fit all three steps right now is Mastercard (MA). The credit card provider is part of an oligopoly.

It has a simple business model where it essentially earns a small fee on each transaction over its network.

Earnings, revenues, and free cash flow are growing at the company. That’s a healthy sign that the company can continue to grow.

And that it can buy back shares, and even pay a dividend. That’s the kind of predictability in a business that makes for a good long-term investment.

To see the other two companies worth buying for the long-term now, click here.