5 Stocks You Don’t Have to Worry About

Feb 24, 2009, 3:42 am EST | By Jamie Dlugosch, InvestorPlace Writer

Stock #5: Potash (POT)

The final stock to own in a long-term portfolio is fertilizer company Potash (POT).

Shares of POT were victimized by large bouts of forced selling during the last half of the year. Hedge funds had piled into the stock when the global growth story was at a peak.

Redemptions and leverage calls required managers to raise cash, and they did so by selling stocks like POT. Shares have doubled since bottoming but still trade for a single-digit multiple to earnings.

Demand for food will be one of the few certainties in the future. You don’t have to worry about consumers suddenly fasting like Gandhi. It won’t happen.

Instead, population across the globe will require agriculture to explode. Fertilizer increases yields. It is an easy formula for stock growth that will keep POT an investor favorite for many years.

If you ignore the noise in the market, you will find many companies worthy of consideration for a long-term portfolio. These are five you can buy now and forget about. And in this environment, that is a very good thing.

And don’t forget to check out: