When I buy a share, I intend to hold these three to five years and then analyze whether it is worth holding for longer. For a period of time of that length, operating results must take over the most important factor for share performance instead of short -term marketing sentiment. However, there are a few shares in my portfolio that I never intend to sell unless something changes drastically with their investment theses.
Three of the shares on this “Hold Forever” list look today as reasonably strong purchases. They are also heavily involved in the Artificial Intelligence (AI) weapon race and well positioned to take advantage of the massive technological shift that we undergo.
Amazon (Nasdaq: AMZN) is an important part of the lives of most American consumers. Almost everyone has bought something on their market, and many people (including myself) do a significant part of their shopping via his e-commerce platform.
However, I am more enthusiastic about his Cloud Computing Business, Amazon Web Services (AWS), which offers computing power that customers can use to host websites, to train data of process data or AI models. With Cloud Computing, customers can run their companies on a more asset light way, because they can easily scale up or shoot the amount of processing power they use and they don’t have to buy or maintain the hardware itself. AWS ensured 50% of Amazon’s operating result in the quail, despite the fact that only 15% of the turnover was done well.
Grand View Research predicts that the Cloud Computing Market will grow between now and 2030 with an annual rate from 21% to $ 2.39 trillion. Amazon is perfectly positioned to take advantage of this enormous growth trend. Because Amazon has a strong grip on the market for consumer goods and cloud computing markets, it is a great shares to buy and keep.
The investment thesis for Alphabet (Nasdaq: Goog) (Nasdaq: Googl) shares many similarities with the dissertation for Amazon. While Amazon dominates the American e-commerce, alphabet rules are looking for alphabet rules. This old company generates an enormous amount of money from advertisements.
Alphabet also has a cloud computing segment, and in Q4 the turnover of Google Cloud increased by 30% year after year versus AWS’s growth of 19%. AWS remains much larger and generates $ 28.8 billion in income compared to Google Cloud, which generated $ 12 billion. Yet the same tail winds apply to both.
Alphabet has also made significant investments in AI, and the Gemini -generative AI model has become a top performance in this space. Although some investors were worried that the tight grip of Alphabet on the search market would be weakened because AI was integrated into the products of its competitors, Google has made comparable changes and so far has largely maintained its broad lead in space.
