How a Veteran Investor Beat the Market for 30 Years — 3 Stocks He Favors Now

For more than three decades, a disciplined veteran investor managed to outpace the broader market without recording a single losing year. The secret behind that rare streak wasn’t short-term speculation but a steady adherence to a few core investment principles: buy high-quality businesses with durable competitive advantages, prioritize strong free cash flow and reinvest dividends, and maintain patience through market cycles.

Today, that approach is reflected in three blue-chip holdings he favors. First, Apple Inc. (AAPL) exemplifies a wide economic moat: a sticky ecosystem, recurring services revenue and substantial cash generation that supports buybacks and innovation. For long-term investors, Apple combines growth with balance-sheet strength, making it a ballast in portfolios sensitive to both secular tech adoption and consumer demand.

Second, Microsoft Corp. (MSFT) stands out for its dominant positions in cloud computing, enterprise software and subscription services. The company’s shift toward high-margin, recurring revenue via Azure and Office 365 creates predictable cash flows and multiple avenues for continued profit expansion. Microsoft’s mix of growth and cash conversion appeals to investors who want exposure to technology without overpaying for cyclical bets.

Third, Johnson & Johnson (JNJ) represents a defensive complement to the first two names. As a diversified healthcare giant with established consumer brands, pharmaceuticals and medical devices, J&J offers resilience in downturns and a long history of dividend increases. For investors seeking downside protection and income, healthcare leaders like J&J can reduce portfolio volatility while continuing to deliver compounded returns.

While these three companies are not a recommendation for all investors, they illustrate the kinds of businesses that supported a remarkable 30-year, no-losing-year record: large-moat franchises, reliable cash generation and management teams that allocate capital prudently. Replicating the record requires discipline, proper position sizing and a long horizon. Always consider your own financial goals and risk tolerance, and consult a qualified advisor before making investment decisions.