Top 5 Companies to Buy And Hold For 5 Years
Updated: Oct 16, 2020
It's no surprise that I'm making this list, everyone knows I'm a long term investor. A 5 year time horizon is perfect for someone with about $10,000-$30,000, especially for young professionals who are getting into stocks for the first time. Rule #1 for investing, never lose money. And these 5 Companies will be the perfect picks to help your portfolio grow steadily and consistently, outperforming the market:
Tesla, Inc. (TSLA) - Tesla being the largest and most dominant electric car provider in the world, with so much room to grow in a young industry. There are no electric car companies in sight, and Elon Musk's other projects such as SpaceX and Neuralink, illustrate his deep desire to bring new exciting technology into the world. Tesla will continue to expand and innovate while their competitors struggle to keep up. By 2025, Tesla could hold a growing monopoly over electric cars and fully autonomous cars are not out of the question.
Apple Inc. (AAPL) - Apple's purpose has not changed since Steve Jobs regained control as CEO in the late 1990s. Their goal is to produce user-centered, intuitive, and indestructible technology to all users around the world. Critics slam Apple for always being behind the curve on innovating technology, notoriously releasing their first waterproof phone 7 years after the technology first hit the market. However, Apple's goal has never been to innovate, their goal has been to produce exciting technology that anyone can use. And the 5 year future of this company is bright, their stranglehold on the smartphone market is only getting stronger, and their new emphasis on privacy will indubitably grow sales.
Amazon.com Inc. (AMZN) - This should come as no surprise, the monopoly they hold in ecommerce is akin to that of Rockefeller's Oil. And their innovation to build faster shipping networks continues to grow their capabilities. We shall soon see 2-hour, 1-hour, and perhaps 30-minute delivery via drone. The technology for Prime Air is about 3 years in the making and is soon to be unveiled for usage in specific spots across the US and Europe. Their largest threat is federal regulations being set by the US Congress, but I wouldn't hold my breath.
Netflix Inc. (NFLX) - It's a shame to see so many movie theaters shut down, even before COVID they were in serious trouble. As the world becomes more accepting and reliant on on-demand content, Netflix has become the place to be. Studies have shown Netflix's interface is far more intuitive than its competitors (Hulu, Disney+, Prime Video, etc.) and now their users have become more obsessed with their original productions than their licensed TV and movies, making it cheaper to operate and they've become more vertically integrated. If trends continue long term, and I don't see any indications that they won't, then Netflix could be as big of a household name as Microsoft in the 80s, shaping and molding a new industry at its will.
McDonald's Corp. (MCD) - This might be more a surprise than the rest, and is considered to be fairly conservative stock play. This is because absolutely nobody can imagine a world in which McDonald's goes out of business. However investors will question, how much more room do they have to grow? The answer: not much. The growth of this Goliath has simmered, but as McDonald's introduces new technology in their stores, their overhead costs will drop alongside their need for part-time employees. The significant and scalable decrease in operating costs will produce significant gains over the long term as the company becomes vastly more cost-efficient.
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