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I usually buy stocks with the idea of holding them for a decade, or longer. Here are two FTSE 100 stocks that I plan to have in my portfolio for the next 25 years, at least.
Barratt Redrow
Home builders love it Barratt Redrow (LSE:BTRW) remains largely out of fashion with investors today. Substantial fears about rising prices and future interest rates weighed heavily on the sector in the final months of 2024 and still do.
However, I am holding on to my shares of Barratt and plan to continue to hold them for a long time. Following its merger with Redrow last year, it has become the UK’s largest builder by volume. It also has plans to charge more for production to take advantage of the market boom when it comes.
It aims to increase housing completions to 22,000 a year in the medium term, the company announced at its autumn AGM. That’s up from the planned 16,600-17,200 buildings it expects this fiscal year (ending June).
After housing prices returned to growth last year, industry experts are optimistic about the market’s recovery. Estate agent Hamptons, for example, expects house price growth of 3% this year, rising to 3.5% in 2026 and holding steady at 2.5% the following year.
Driven by rapid population growth, I expect housing prices to maintain their steady rise over the coming decades. And I believe that Barratt Redrow, who will also benefit from more post-merger revenues and cost synergies, is in the box seat to take advantage of this.
Coca-Cola HBC
Coca-Cola Hellenic Bottling Company (LSE:CCH) offers a sweet combination of growth potential and solid stability that I can’t resist.
As its name suggests, the FTSE 100 includes strong bottling and selling of some of the largest beverage brands in the world. On the side Cokeproduces other heavy weight words like Sprite, He knows again Monster Power.
This gives me as an investor excellent peace of mind. These labels remain in high demand in all areas of the economic cycle, reflecting their reputation for quality and fashion. Such qualities also allow Coca-Cola HBC to raise prices without suffering a drastic reduction in volumes, allowing the company to increase earnings over time.
Its strength was reflected in the latest trading statement for November, which showed organic revenue rose 13.9% in the third quarter and organic revenue on a case-by-case basis increased 9.5%. This is despite difficult economic conditions and inflationary pressures in many markets.
However, as I say, durability is not the only attractive feature of Coca-Cola HBC. It also has incredible potential for growth, due to its geographic scope and being among the fastest growing and developing economies in Eastern Europe and Africa.
On the other hand, the bottling giant faces significant market competition from the likes of PepsiCo and is highly dependent on its US-based relationships Coca-Cola Co. But given its strengths and strong track record of innovation, I believe it can continue to thrive for decades to come.
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