Every single portfolio should have a core set of investments that they buy and never sell. It provides stability and long term grow. I have picked 3 to have some diversity, but you will likely get better returns if you pick just one.
These are 3 stocks that I have total conviction will be massive in the future. They have a massive customer base. They have multiple streams of income and they are resilient through any economic downturn.
Growth, Value, Diversification
Each one of the stocks below represents a different element of my portfolio. Lets get into the 3 stocks that I would begin my journey to financial freedom with:
- BABA – Alibaba
China will eventually become the world’s largest economy. Simply because their population is 4 times that of the United States and that is a lot of consumers. No company is better positioned to take advantage of the Chinese economy. Alibaba serves the entire economy.
Alibaba has customers in America and Europe, because they connect Chinese manufacturers to American sellers. And they have a dominant payment system. There are so many different ways this business can monetize. There are so many customers that this business has yet to reach and they are already dominating China. Alibaba is a growth story.
2. FB – Facebook
Facebook is a value story. It has yet to break through the $1 Trillion market cap unlike Amazon, Google, Microsoft, Apple. And yet Facebook has more users globally than all these businesses. Their core business is still in growth mode. They are still growing their user base with Instagram and What’s App.
They are trying to diversify with Gaming and Virtual reality as well as Products like Portal. There is still a lot of room to experiment and find way to monetize their platform.
Users are more engaged on Facebook than any other website. It is hard for people to leave and go find people hanging out other places online. eCommerce is just getting started for them. Instagram and shopping on Facebook is going to be massive and we are just at the beginning. All of this is combined is going to create massive revenue.
3. BRK.A – Berkshire Hathaway
The Oracle of Omaha is a compound interest machine. They have billions of dollars just sitting is the bank waiting to be spent on the next great business. Berkshire is unlike any other company in the world. It is an insurance company, railroad company, fast food company, energy company and of course an investment portfolio.
The businesses produce income that feed the investments and the invests produce dividends that feed the businesses. And they have so much extra cash that they could a number of other businesses.
Warren Buffett has created a business that is really too big to fail and will continue to grow indefinitely.
How should you invest in these companies?
These 3 stocks are ones that I am going to buy and hold for life. They are still growing. Their net income is continuing to increase and yet they are not as expensive as some of the other technology stocks.
Set up a schedule to buy regularly into these stocks. Right now is a great time to buy these stocks. It is 2021 and the world economy is slowly reopening. Stocks has already reached all time highs.
But I believe that the world gets back to traveling and full capacity the stock market will continue to climb and these businesses will be a direct beneficiary. These businesses are also recession proof. Even though the economy dips people still need their services.
Buy now and hold for the next 20 years and your bank account will thank you.