Can these 10 FTSE 100 shares stand the test of time?

I’m a long-term investor, so I’m looking to buy stocks that I can hold for years or even decades. Even among the ranks FTSE 100 stocks, though, some businesses come and go.

Here are 10 FTSE 100 businesses that I think have the potential to thrive in the coming decade – and why I’d be happy to buy shares in some but not all of them now.

Long-term vision

In a changing world, some businesses move by the wayside. But others became stronger and stronger.

Dividend Aristocrat USA Procter & Gamble, 3M, Johnson & Johnson, and Coca Cola all have raised dividends every year for at least 60 years.

What do successful companies like this have in common?

They all have a big end market – billions of people get thirsty or need a plaster sometimes. Every company has at least one competitive advantage that differentiates them in the market, giving them pricing power. That may be a registered trademark like 3M Post-It notes or a distribution network such as that organized by Coke.

Durable FTSE 100 stocks

On this side of the pond, I think some of the leading blue-chip companies have similar characteristics.

Among the FTSE 100 stocks, which include rival Procter & Gamble in the consumer goods business, Unilever, stretch, and Haleon. It also includes medical companies, such as GSK and AstraZeneca.

With unique brands included Guinness and the ten-long streak itself from the annual dividend increase, I saw the similarity between Edo’s drinks Diageo and Coca-Cola. I hope it stays around for a long time.

People need somewhere to buy these consumer goods. FTSE 100 shares Tesco and Sainsbury’s may be with us for a long time.

Utilities often have a natural competitive advantage due to geographic monopolies or installed networks. National Grid, United Utilitiesand Severn Trent fit this mold.

Of these 10 companies, Unilever, Tesco, and Sainsbury’s were among the original FTSE 100 stocks when the index was created in 1984. The forerunner distillers were Diageo, Reckitt & Colman, Reckitt’s predecessor, and several companies that eventually merged to form GSK as well. in the first incarnation of the index.

Should I buy it?

But past performance is no guide to what happens next. Several other original FTSE 100 stocks from 1984 later disappeared without a trace, such as MFI Furniture.

But I think a proven business with a consistent audience and a strong competitive advantage has a good chance of standing the test of time.

They may not make a good investment for me.

Why?

The success of an investment depends in part on the price paid, no matter how big the business is.

For example, I think Diageo is a very good business. But with a price-to-earnings ratio (P/E) of 22, the company’s value is still not tempting enough to buy the stock. The same goes for AstraZeneca, with a P/E ratio in the sixties.

Finding a company that will stand the test of time is only one part of making a good investment. It is also important to only buy strong FTSE 100 stocks when they are offering good value.

That’s why I monitored all 10 companies to see what they offered at an attractive price while I also had money to invest.