Stock market

2 brilliant FTSE 100 stocks that I would buy for a SIPP and hold for a decade

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Warren Buffett famously said:If you’re not thinking about owning a stock for 10 years, don’t think about owning it for 10 minutes.“A Self-Invested Personal Pension (SIPP) is perfect for this mindset.

This is because it allows me to save tax, invest and accumulate money for retirement. And that could be a decade or more away.

There are two criteria here. FTSE 100 Stocks I will buy today for SIPP

Please note that tax treatment depends on the individual circumstances of each client and may change in the future. The content of this article is provided for informational purposes only. It is not intended to be, nor is it intended to be, any form of tax advice. Readers are responsible for conducting their own due diligence and seeking professional advice before making any investment decisions.

The biggest fish

To start, I’ll go with the UK’s largest company by market capitalisation: Astra Zeneca (LSE: AZN). The pharma giant is just ahead of fellow Footsie heavyweights. Shell in classification.

The stock has more than doubled in five years and nearly tripled in a decade. A combination of smart leadership, smart acquisitions and incremental top-down growth has driven this performance.

In 2014, the drugmaker set a target of reaching more than $45bn in revenue by 2023. Having achieved this, it now aims to reach $80bn in revenue by 2030, a 75% increase.

It expects to introduce 20 new drugs by then, as well as boost sales from its large existing portfolio of oncology, biopharmaceuticals, and rare diseases. And it is targeting a core operating profit margin of 30%, up from 28% in 2020.

While I wouldn’t bet against it all, the company could face a late-stage clinical trial failure. That’s just the nature of the beast here, as are potential litigation and regulatory issues.

After all, AstraZeneca aims to transform oncology by replacing traditional treatments such as chemotherapy and radiotherapy with more targeted treatments.

This is a vision I have invested myself in, having added Astra shares to my portfolio a few months ago.

In my view, a growing global population and increasing cases of cancer should naturally cause the company to become more valuable over time.

The journey won’t always be smooth, but this is one FTSE 100 stock I’d want in my SIPP for the long haul.

A world-class data firm

Next, we have experienced (LSE: EXPN). It is one of the largest credit reporting agencies in the world. It provides data and analytics tools to help lenders around the world make informed decisions.

Like AstraZeneca, this stock is performing very strongly. That’s up 26% on the previous year, handily beating the wider FTSE 100 in the process.

There are a few reasons I like Experian. For starters, it boasts strong returns on capital and equity. In its last financial year ended in March, it achieved a very healthy 17% net profit margin.

Second, the company has credit information on more than 1.4bn consumers and 191m businesses worldwide. It is almost impossible to duplicate, making it a powerful and sustainable competitive advantage.

Third, these high-quality datasets can be used for new AI-powered analytical tools.

One issue I will highlight here is the valuation, with the stock trading at around 29 times forward earnings. This is well above the FTSE 100 average, which could mean that disappointing results could send the price lower.

However, I don’t think this valuation is outrageous for a world-class data firm. I can see the stock outperforming the UK market over the next decade and plan to add it to my SIPP.


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