3 unstoppable investments everyone needs in their wallet
When most investors are looking for new stocks to buy, they consider factors like their tolerance for risk, preferred holding periods, and the ultimate timeframe to achieve their goals. Since every investor is different, so are the combinations of their holdings. Different stocks tick different boxes.
However, there are a small handful of solid names that could be right at home in any investor’s portfolio. Here’s a look at three of the best of these versatile leads.
It’s not a business that needs a lot of introduction. Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) is of course the parent of the world’s most widely used search engine, Google.
What may not be fully appreciated by investors, however, is how dominant Alphabet is in the search engine arena. The GlobalStats statistics counter shows that Google is the web search medium for almost 86% of the world’s computers.
It is not only on the search engine front that Alphabet dominates its respective market. It’s also the heavyweight of mobile operating systems, with Android installed on nearly 73% of actively used smartphones and tablets globally.
As was the case with search engines, this is an advance that Alphabet has enjoyed for some time as well, positioning it perfectly not only to serve as a search engine on mobile devices (95% of them , still according to GlobalStats), but as the easiest platform for downloading apps and other revenue-generating digital content. In total, Google alone accounts for nearly 60% of Alphabet’s total revenue.
This is not an easy task. While most industries evolve over time in ways that open the door to new and better competition, the research industry as we know it is likely to stay there. Ditto for mobility. Now that we’ve gotten used to being constantly connected, we’re not inclined to regress. Since we are already used to “google” everything we want to know and are already familiar with the Android operating system, Google’s dominance is well protected for the indefinite future.
Walmart (NYSE: WMT) won’t be winning any growth awards anytime soon. In fact, at the same time the e-commerce giant Amazon strives to control its growth, traditional retailer Target nibbles at his heels. Many other businesses would eventually collapse under such pressure.
What’s vastly underestimated here, however, is the strength of Walmart’s grip on the retail market that just isn’t going to move online.
At last count, there are 10,524 Walmart stores around the world, with 4,740 conventional stores in the United States alone; nor does that count the more than 600 Sam’s Club stores across the country. The company estimates that 90% of U.S. residents live within 10 miles of a Walmart, making it the most accessible physical retailer for about 300 million people.
Walmart is not, however, resting on the laurels of its geographic reach. It is also evolving into a lifestyle business that consumers feel more personally connected to. Locally-brewed beers, health clinics, subscription delivery service for online orders, selected third-party vendors on Walmart.com, high-fashion private label clothing and technology installation services are now included. of the retailer’s directory. None are game-changing per se, but all together make Walmart a very easy name to use to keep shopping.
These initiatives won’t always translate into solid sales and earnings growth, mind you. But they will more often than not, extending its streak of annual income growth that dates back to the 1980s.
Finally, add Pay Pal (NASDAQ: PYPL) to your list of unstoppable stocks that any investor could use to generate reliable long-term growth in their portfolio.
Of course, other payment processing players tiptoed into PayPal’s field. Square brilliantly penetrated the small merchant market that most payment intermediaries ignored. Based in the Netherlands Adyen is carving out a respectable business outside of North America, although it’s now making waves in the United States as well.
Ultimately, however, the first big name in online payments remains the best way for investors to tap into the growing disinterest in cash. PayPal still controls between 50% and over 90% of the digital payments market, depending on how you count shares and who counts.
One thing is certain. although. In other words, however you calculate it, PayPal is not dethroned. Indeed, in 2020 – a year in which competitors had a great opportunity to attract new users – PayPal’s total payment volume increased by 31%, and the company added nearly 73 million accounts. actively used to bring the total to 377 million. Forecasts suggest this full year’s growth will be almost as impressive.
Much like Walmart, however, PayPal is no longer limited to its core payment business. The company is now reportedly considering ancillary activities such as stock trading after recently adding online savings accounts and cryptocurrency payment to its app. The sky is the limit with these and other companies leveraging the established brand and its nearly 400 million active users.
This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.