Amazon Stock – 3 Stocks to Buy and Hold for Decades | Personal-finance
Are you looking for a stock that you can rely on for the next few decades? It’s hard to see that far into the future, but there are some key characteristics that you should prioritize for ultra-long-term holdings.
The perfect stock for this role would have a combination of growth potential and stability. Industry leaders with wide economic moats and exposure to long-term macro growth trends are attractive in this regard. These trends could include cloud computing, data analytics, cybersecurity, the Internet of Things, and disruptive fintech. Products and services with high switching costs and long replacement cycles are even better, because it simply takes longer for incumbents in these areas to be dethroned. Those are the types of companies that are going to be around for a while, delivering growth for investors.
If you’re looking for a great stock to hold in your 401k or your Roth IRA, consider these three stocks to buy and hold.
This one is obvious, and popular enough that it almost feels like cheating to include on this list, but Amazon (NASDAQ: AMZN) is too good a fit for this role to ignore. Consumers are well aware of the company’s dominance in e-commerce. Amazon has nearly 50% of the U.S. e-commerce market, which dwarfs its next largest competitor’s market share. Online retail has grown rapidly for the past decade, and the pandemic drastically accelerated the trend. All the while, Amazon has established a fearsome competitive advantage, with unmatched logistics, the network effect, an enviable brand, and sheer scale. E-commerce isn’t going away, and it would take years to supplant Amazon, even as a wider array of competitors enter the space.