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Introduction
Despite what you may have heard, one of the secrets to successful investing is actually to put your money with companies that have solid track records.
That’s because it’s not all about finding the “next best thing.” The next start-up that is going to become a world-beating multi-national.
If you’re looking for long-term investments to grow your wealth for the future, then read on to see why you should have these big boys on your radar.
The Stocks That Rock!
The following five all have one thing in common – they are massive companies that will most likely never go to zero. In other words, it would take an almighty cataclysmic event to make any of them go bust.
There’s another trait they all share, which we shall reveal at the end.
Okay, let’s jump in!
Amazon (AMZN)
Described as one of the world’s “most valuable brands” Amazon needs no introduction really, but just for the record – it’s a multinational technology company devoted to e-commerce, cloud computing, and digital streaming.
It was founded by Jeff Bezos from his garage in Bellevue, Washington, on July 5, 1994 and began life selling book online before branching out to other products.
It is now regarded as one of the most influential economic and cultural forces in the world and the world’s largest online retailer.
Why investing in Amazon is a no-brainer:
- It has a strong track record of growth.
- Is also a leader in cloud computing, with its Amazon Web Services (AWS) platform.
- Has multiple successful subsidiaries.
- Amazon is investing heavily in new areas, such as artificial intelligence and self-driving cars.
- The company has a strong brand and a loyal customer base.
- Recent developments:
- Amazon reported strong earnings for the third quarter of 2023, with revenue up 15% and earnings per share up 19%.
- The company also announced a new $10 billion investment in its AWS business.
- Amazon is also expanding its physical retail presence, with plans to open more than 300 new stores in the United States in 2024.
Accenture (ACN)
Based in Dublin, Accenture is a global leader in consulting and IT services. The company has a strong track record of growth and profitability. This year it has posted revenues of $64.1 billion.
Accenture’s current clients include 91 of the Fortune Global 100. As of 2022, Accenture is considered the largest consulting firm in the world by number of employees.
Accenture began business in the early 1950s when General Electric commissioned a feasibility study for installing a computer at its Kentucky facility. It led to GE’s installation of a UNIVAC I computer and printer. This is said to be the first commercial use of a computer in the U.S.
Many good things going for it:
- Accenture is well-positioned to benefit from the increasing demand for digital transformation services.
- The company has a strong balance sheet and a healthy dividend yield.
- Accenture reported strong earnings for the fiscal fourth quarter of 2023, with revenue up 13% and earnings per share up 17%.
- The company also raised its full-year guidance for 2024.
- Accenture is investing heavily in new areas, such as artificial intelligence, cloud computing, and cybersecurity.
ASML Holding (ASML)
Dutch multinational ASML was founded in 1984 and is now the world’s leading manufacturer of semiconductor lithography machines used in the production of computer chips.
It is also the sole world supplier of extreme ultraviolet lithography (EUV) photolithography machines used in the manufacture of the most advanced chips.
So many positives to compute with!
- As of June 2023, ASML is the most highly valued European tech company, with a market capitalization of around US$280 billion.
- ASML has a strong track record of innovation and technological leadership.
- The company is well-positioned to benefit from the long-term growth of the semiconductor industry.
- Recent developments:
- ASML reported strong earnings for the third quarter of 2023, with revenue up 18% and earnings per share up 30%.
- The company also raised its full-year guidance for 2023.
- ASML is investing heavily in new technologies, such as extreme ultraviolet (EUV) lithography.
Check Point Software Technologies (CHKP)
Founded in 1993, Check Point is a global leader in cybersecurity solutions. The company’s products protect businesses and organisations from a wide range of cyber threats.
As of 2021, the company has approximately 6,000 employees worldwide and a presence in over 70 global locations.
Positive factors:
- Check Point has a strong track record of innovation and technological leadership.
- The company is well-positioned to benefit from the increasing demand for cybersecurity solutions.
- Recent developments:
- Check Point reported strong earnings for the third quarter of 2023, with revenue up 12% and earnings per share up 16%.
- The company also raised its full-year guidance for 2023.
- Check Point is expanding its product offerings to include new solutions for cloud security, endpoint protection, and managed security services.
Nike (NKE)
Founded in 1964, Nike is the world’s leading athletic footwear and apparel company blessed with a strong brand and a loyal customer base. Fittingly, it takes its name from Nike, the Greek goddess of victory, officially adopting the name in 1971.
In 2022, it posted revenue in excess of US$46 billion. In 2020, the brand alone was valued at $32 billion+. As of 2020, it employed 76,700 people worldwide.
Positive factors:
- The company has a strong balance sheet and a healthy dividend yield.
- Nike reported strong earnings for the fiscal first quarter of 2024, with revenue up 8% and earnings per share up 13%.
- The company also raised its full-year guidance for 2024.
- Nike is expanding its product offerings to include new categories, such as women’s apparel and sportswear.
- The company is also expanding its international footprint, with plans to open new stores in China and India.
- Nike is investing heavily in new technologies, such as digital transformation and e-commerce.
Conclusion
It doesn’t take a genius to work out that the five companies listed above are all well-positioned for long-term growth.
They have strong track records, healthy balance sheets, and are investing in new technologies and markets.
Recent developments have made these stocks even more attractive, with strong earnings reports and guidance from all five companies.
Plus, as promised in the intro, the other factor that makes them attractive for investors is – they straddle different niches, from footwear to computer chips and much else in between.
In other words, why invest in just ONE of them, when you can invest in all FIVE?
Because, if you don’t now already, DIVERSIFICATION is the heartbeat of ANY successful investment portfolio.
To learn more about stock investing and diversification, and the strategies you need to be a success at investing, subscribe to IM Insider now.
