Warren Buffett once said that his favorite hold time is a good store forever. But it's easier said than done to keep a stock for decades when market downturns pull on investors' nerves. Today, our authors have two layers that you can certainly hold for decades: Amazon.com (WKN: 906866) and Goldman Sachs (WKN: 920332).
Amazon is still great
Leo Sun (Amazon): Amazon's stock has risen above 2,400% over the past decade. During this time, it put pressure on local dealers and extended its cloud offer. While these gains are unlikely to return in the coming decades, they remain a solid long-term investment.
Amazon is the world's largest e-commerce company in terms of revenue. And it takes more and more customers with their Prime program. Free delivery, discounts, video streaming and other benefits are the cover.
The company also expands its electronic ecosystem to brick-and-mortar retail by operating Whole Foods, Amazon Books, Amazon Go and 4-Star Stores. It also finds its way into the apartments with its appliances like Kindle, Echo and Fire TV. And it is always to get new brands to market to test new offers to expand their competitive advantage.
Amazon can afford to run many strategies that promise low margins or even lower losses, as it does most Switch to Amazon Web Services (AWS), the world's largest cloud platform. Its customers include Netflix, Adobe, Comcast and NASA.
Amazon's sales growth slows. This is partly due to the efforts in stationary retail. But profit growth is faster. The stock market expects profit for the next five years to increase on average by 44% per year. This results in a P / E ratio of 44. Although the Amazon stock does not seem "cheap", investors should pay the premium for the largest e-commerce market and the largest cloud platform in the foreseeable future. Because these two factors are the reason why you can keep the warehouse for decades.
Dan Caplinger (Goldman Sachs): There are not many things you can rely on for decades, but the financial market will continue to exist for a long time in the 21
And now Goldman thrives. Despite its historical dependence on investment banking, the financial giant has taken the first steps in the private banking business. This was evident in the launch of Marcus' online banking platform and the partnership with Apple on the new credit card offer. Goldman is not afraid to expand its boundaries to open up new markets. Initial indicators show that the efforts are worthwhile.
Goldman's strategic vision may include new business areas in the future, but the company has not forgotten what made it big. And it is difficult to maintain that leadership in the stock market. With its financial market companies and other banking services, Goldman Sachs has a good position to take seriously in the coming decades.
Forget the fuel cell car – this market becomes much larger
Hydrogen – this element is considered the key to taking over the energy transition to the next level. Millions of research programs are now developing. And that's just the beginning! Before our eyes a large industry develops. And there are two players who, according to our analysis, can already benefit a lot from this.
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John Mackey, CEO of Whole Foods Market, a subsidiary of the Amazon, is a board member of The Motley Fool. Dan Caplinger holds shares in Apple. Leo Sun has stock of Amazon and Apple. Motley Fool holds and recommends shares of Adobe Systems, Amazon, Apple and Netflix. Motley Fool has the following options: Short January 2020 $ 155 Calls Apple and Long January 2020 $ 150 calls on Apple. The Motley Fool recommends Comcast.
This article was written in English by Leo Sun and Dan Caplinger and published on on 29.03.2019 at fool.com .
Motley Fool Germany 2019