Every time I buy inventory, I plan to hold it for 3-5 years and analyze it if it is worth holding it for even longer. With that length of time frame, business outcomes should be carried over as a key factor in stock performance rather than short-term market sentiment. However, there are some stocks in my portfolio that I am not planning to sell unless there is something dramatic change in my investment paper.
The three stocks on this “Hold Forever” list look like a rather strong purchase today. They are also deeply involved in the AI ​​(AI) arms race and are suitable to exploit the massive technological changes we are experiencing.
Amazon (NASDAQ: AMZN) It is an important part of the lives of most US consumers. Almost everyone has bought something in the market before, and many people (including me) shop quite a bit through e-commerce platforms.
But I’m more excited about it Cloud Computing BusinessAmazon Web Services (AWS). It provides computing power that clients can use to host websites, process data, and train AI models. Cloud computing allows clients to easily increase or decrease the amount of processing power they use, and run their business in a more asset-friendly way, as they do not have to buy or maintain the hardware itself. AWS provided 50% of Amazon’s operating profit in the fourth quarter, despite accounting for just 15% of its revenue.
Grand View Research predicts that the cloud computing market will grow from 21% to $2.39 trillion per year between now and 2030. Amazon is fully positioned to capitalize on this massive growth trend. With Amazon having a solid grasp of the consumer goods and cloud computing market, it’s the perfect inventory to buy and hold.
Investment paper alphabet (NASDAQ: GOOG) (NASDAQ: Google) It shares many similarities with Amazon papers. Amazon controls US e-commerce, while Alphabet Rules searches on Google search engines. This legacy business generates huge amounts of money from advertising.
Alphabet also has a cloud computing segment, with Google Cloud revenues increasing 30% year-on-year and AWS’ 19% growth in the fourth quarter. AWS remains large, generating $28.8 billion in revenue and $12 billion compared to Google Cloud. Still, the same tailwind applies to both.
Alphabet also invests heavily in AI, and its Gemini Generative AI model has become a top performer in this field. Some investors were worried that Alphabet’s tough grip in the search market would be weakened as AI is integrated into competitors’ products, but Google has made similar changes. , so far, they have maintained a wide lead in this space.
