3 Stocks I'm Never Selling
Sure, investing can feel difficult at times. Market turmoil can give you ulcers. And for most people, spending money is more fun than growing it.
Nevertheless, regularly investing money in the stock market -- and leaving it there -- is the best way to accumulate wealth.
So, with that in mind, let's take a look at three of my "forever" holdings -- stocks I plan on owning for the very long term.
Image source: Getty Images.
Amazon
Topping my list of stocks I'm never selling is Amazon (NASDAQ: AMZN). There are multiple reasons why I want to own this e-commerce and cloud giant, but near the top of the list is that Amazon is once again firing on all cylinders.
After suffering through several frustrating quarters, Amazon investors were recently rewarded with an exceptional quarterly report that blew away expectations.
Highlights included:
- Revenue of $134 billion, up 11% year over year;
- Amazon Web Services (AWS) revenue of $22.1 billion, up 12% year over year;
- Earnings of $0.65 per share, almost double what Wall Street had expected.
What's more, that peach of a quarter helped put to rest fears that new Amazon Chief Executive Officer Andy Jassy can't deliver the goods. Jassy's plan to cut costs has paid off, with overall headcount down 4% from a year earlier.
Despite those cuts, Amazon continues to develop new and exciting areas for growth while eating away at its competitors' market share. Advertising revenue skyrocketed by 22% to $10.7 billion. For comparison, Meta Platform's Facebook saw ad revenue rose 12%, while Alphabet's Google saw only a 3% increase.
In addition, I think Amazon remains extremely well positioned to capitalize on the artificial intelligence (AI) revolution. So much so, in fact, that I believe the company could become the second-largest U.S. company by 2030. For all those reasons and more, I'm never selling my Amazon shares.
Adobe
We all know 2022 was a rough year for the stock market, particularly for tech stocks. In fact, at one point, Adobe (NASDAQ: ADBE) shares were down by 60% from the all-time high they touched in late 2021.
Yet, that collapse offers an example of why it's best to buy and hold. This year alone, shares are up 60%. Even so, I'm not planning on selling my shares anytime soon.
Adobe's business model, centered around its Creative Cloud software bundle, is set up to thrive for years. Graphic designers, content creators, photographers, teachers, students, and more all rely on Adobe's products to make eye-catching content.
What's more, Adobe is leading the way in showing how human creativity can be supercharged by AI. The company is integrating many AI-powered features into its popular software titles such as Adobe Photoshop, Firefly, and Premier Pro.
Financially, the results are clear. Adobe generated $18.4 billion in revenue over the last 12 months. Revenue for the fiscal quarter that ended on June 2 was up 10% year over year. Meanwhile, Wall Street expects Adobe to grow sales 12% in 2024.
With those sound financials backing up its best-in-class software, I plan on holding Adobe for a very long time.
Tesla
Rounding out my list is Tesla (NASDAQ: TSLA). I plan on holding shares of Tesla forever. That's because it -- even more than my other two picks -- is a bet on the distant future.
And that shouldn't come as a surprise, given how Tesla -- and its mercurial leader, Elon Musk -- view the company's mission. Tesla's mission statement is "to accelerate the world's transition to sustainable energy."
Obviously, building and selling enormous numbers of electric vehicles (EVs) is one key to fulfilling that mission, but Tesla's plans don't end there. In the future, Tesla plans on becoming a far more substantial player in the energy economy.
Image source: The Motley Fool
Consider this: Currently, Tesla's energy segment currently generates a modest 7% of the company's revenue. However, its energy generation and storage business is booming, with sales increasing 74% year over year.
Intuitively, this makes sense. Environmentally conscious consumers who buy new EVs will want to charge them in a sustainable fashion. That will drive up demand for Tesla's clean energy and storage solutions. And since some analysts believe Tesla already has the world's best battery technology, the company should have a significant head start in the race to supply the batteries that will power residential homes and EVs.
And that's an excellent reason to own Tesla -- now and forever.
10 stocks we like better than Amazon.com
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Amazon.com wasn't one of them! That's right -- they think these 10 stocks are even better buys.
*Stock Advisor returns as of August 28, 2023
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Jake Lerch has positions in Adobe, Alphabet, Amazon.com, and Tesla. The Motley Fool has positions in and recommends Adobe, Alphabet, Amazon.com, Meta Platforms, and Tesla. The Motley Fool recommends the following options: long January 2024 $420 calls on Adobe and short January 2024 $430 calls on Adobe. The Motley Fool has a disclosure policy.
