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Warren Buffett isn’t recognized for investing in FTSE 100 shares. Over time, he’s tended to carry no a couple of. But his investing philosophy is as related for UK shares as it’s for US blue-chips.
One Buffett quote I really like is: “Should you aren’t fascinated by proudly owning a inventory for ten years, don’t even take into consideration proudly owning it for ten minutes.”
Listed here are two FTSE 100 shares I’d fortunately maintain holding for a decade, even when the inventory market shut down.
Rising defence budgets
First up is BAE Programs (LSE: BA.). The diversified international defence big sells merchandise throughout the domains of land, sea, subsurface, air, house, and cyber.
The BAE share worth has practically doubled since Russia’s dreadful invasion of Ukraine in early 2022. That’s as a result of international defence budgets have rocketed larger in response.
Within the first 10 months of 2024, BAE’s order consumption was round £25bn. And it expects full-year gross sales progress of 12%-14%, up from a earlier 10%-12%.
One threat right here is uncertainty about Donald Trump’s effectivity drive led by Elon Musk. Some worry this would possibly imply decrease US defence spending in sure areas, probably impacting the expansion of BAE’s order e book.
Zooming out although, the following 10 years sadly don’t look promising for world peace. The US and China are locked in a geopolitical battle and received’t wish to present weak point in every others’ eyes by decreasing general army spending.
In the meantime, defence budgets are additionally on the rise in Europe, Asia and the Center East, because the world turns into extra fragmented and defence-minded.
BAE inventory has fallen 13% over the previous month, in all probability as a result of Trump wildcard. Consequently, the ahead earnings a number of of 15 is beginning to look enticing. I would improve my place with spare money in early 2025.
The second inventory I’d fortunately maintain for the following decade is healthcare big AstraZeneca (LSE: AZN).
The pharmaceutical business is one which isn’t going to vanish in a decade’s time. Folks will nonetheless fall unwell and require the life-saving medicines that AstraZeneca sells globally at a major revenue.
The corporate has at the very least 12 blockbuster medicine that every generate greater than $1bn in annual income. A lot of these are in oncology, a class the place the agency is an modern international chief.
Earlier this 12 months AstraZeneca acquired Fusion Prescription drugs, a developer of radioconjugates. It is a extra focused therapy that may provide higher affected person outcomes than chemotherapy.
One threat right here is that the corporate’s strategically essential late-stage trials would possibly disappoint. Final week, Novo Nordisk‘s share worth crashed 20% in a day after its next-generation weight-loss drug fell brief in stage 3 trials. The identical might occur to any pharma big, together with AstraZeneca.
Nevertheless, I discover the agency’s large pipeline reassuring. It now has 199 initiatives, which provides it a number of potential progress alternatives over the long term.
Supported by this strong pipeline, the corporate expects to generate round $80bn in annual income by 2030, up from $45.8bn in 2023.
With the inventory buying and selling at a really cheap 14 instances forecast earnings for 2025, and providing a 2.4% dividend yield, I believe AstraZeneca is ready up for market-beating positive factors over the following decade.