Growth stocks have most definitely had their time to shine over the past decade of this market expansion, but there has been a place for good, old-fashioned value stocks as well. Value picks are made for the long haul. With lower valuations, value stocks can help limit the downside potential.
Many value stocks outperform the broader market over the long term. To that end, finding good value stocks with long term growth potential can be very lucrative to the patient investor. Three names that I like are General Dynamics (NYSE: GD), United Rentals Inc. (NYSE: URI), and the coveted Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B).
General Dynamics has made its name by being a supplier of choice to one of the most consistent customers in the world -- the U.S. military. Over the long haul, this stock has beaten the S&P 500 by a handsome margin. Since 1977, an investment in General Dynamics has gained 2,263% compared to the S&P 500's 1,183% gain over the same time frame. The defense contractor's specialty is making machines, including tanks, submarines, and communications equipment. The company also builds Gulfstream jets.