3 Stocks to keep for the next 20 years

Let’s face it. While many investors say they are working for the long term, they often buy a stock with plans to sell it in a matter of months or even weeks. This is better described as speculating on prices than as investing.

On the other hand, who can blame them? If this is the way most stocks of this volatile market are traded these days, then this is how market participants have to navigate the environment.

The thing is, there are still plenty of individual stocks that you can hold for the long term. Here’s a closer look at three of these names you could comfortably ditch for a few decades of wealth building.

the alphabet

The combustion car engine may become a thing of the past by 2041. And who knows? Perhaps the tobacco industry will be completely wiped out within the next twenty years, or perhaps the paper industry will finally die out. Long-term investors should consider all the challenges that may face their property in the future based on the hints being given to them now.

If there’s one thing the world is incredibly unlikely to stop doing over the next two decades, though, it’s use the internet. In fact, it’s a good thing that people will be using the web more and more as time goes on.

Enters the alphabet ( The Google -2.50% ) ( The Google -2.51% ), the father of the search engine giant Google. Not only does Google handle roughly 92% of internet search queries, according to traffic tracking on GlobalStats, but live internet stats also show that the number of searches on Google grew by 22% in 2020, bringing the annual total to For queries to nearly 3 trillion. . Find this number of searches (each with a chance to win) to keep growing as more people can access your connected devices.

Piles of gold coins on top of dollar bills.

Image source: Getty Images.

Not only is Alphabet’s search engine a force to be reckoned with. Google’s software powers the technology that now helps handle most of these searches. This is the Android operating system, built from the ground up with mobile devices in mind.

GlobalStats says Android is on 40% of all connected devices on the planet, and 71% of the world’s internet-connected mobile phones. The company is relatively shy about sharing details, but it acknowledged that the bulk of the $6.0 billion increase in search-based revenue last year resulted from continued growth in its mobile user base.

In short, the Alphabet app will not only be around for a while, but it will be dominate The web search landscape for a while, even as the search market continues to shift away from desktop computers towards portable and compact devices.

Walmart

While much of the latter discourse refers to that of bricks and mortar Retail Dying, this is not actually the case. Department stores and other supermarket chains located in shopping centers may be fighting a losing battle, but general merchandise stores like it Walmart ( WMT -1.40% ) – Easily accessible stores in neighborhoods and communities – doing well.

Last year’s top line of $559 billion was a 6.7% increase over the prior year’s sales, which were up 1.9% compared to 2019. In fact, Walmart’s revenue has grown in every single fiscal year over the past half decade, and every year since the 1980s. With the exception of 2016… Much of the weakness in that year can be attributed to unexpected fluctuations in the value of the US dollar.

The point is, this company is another company built to last. This is because it is at least from the service provider as much as it is a retailer. Its service, of course, provides consumers with access to goods that they tend to buy again and again.

Admittedly, online competitors love Amazon ( AMZN -1.53% ) They were allowed to sneak up on Walmart unaware. Amazon even surpassed Walmart in terms of total revenue earlier this year, according to the numbers it broke. The New York Times. This gap continued to widen in the meantime as well, resulting in poor performance of conventional equipment.

Don’t worry too much about Walmart’s market share. While the e-commerce meeting is late, it has committed $14 billion to invest in things like automation and supply chain improvements that will help it maintain the double-digit growth that its online sales arm has achieved every quarter since late 2017.

A shopper looking at paint samples with a home improvement store employee.

Image source: Getty Images.

Louie

Finally, add Louie ( Little -1.60% ) To your stock list to keep for the next 20 years. It’s another familiar name. But here’s the idea – it’s the kind of company that consumers have made a regular part of their routine, and they’re not likely to replace in a hurry.

While playing the role of the second violin for competition Home Depot ( HD -1.53% ) In terms of size, don’t let its smaller range fool you. Home improvement retailer can hold its own when it comes to inventing new ways to compete. Case in point: Last year the company launched tool rental services aimed at contractors. It’s an opportunity that Home Depot had entered years ago, successfully tapping into a growing segment of the contractor-oriented market.

It’s estimated that nearly half of Home Depot’s revenue is driven by build, repair and maintenance professionals, versus only about a quarter of Lowe’s top line the last time the company disclosed that data. Closing this gap is a multibillion-dollar opportunity for Lowe’s.

The much bigger reason Lowe’s is a kind of solid 20-year tenure, however, is the most obvious. While entertainment, clothing, and even transportation preferences may change over time, the need for nice, well-maintained housing never ends. If anything, it simply keeps growing. Freddy Mac Data shows the US is 3.8 million homes short of the number it really needs, while the National Association of Realtors pegs the number closer to 5.2 million.

Either the problem will require a fix for several years, and the American population is still ballooning in the meantime. The Census Bureau projects that the current US population of about 333 million will exceed 373 million by 2040. There are a lot of home construction (and home improvement, and home maintenance) needs to be done in the meantime. Lowes is ready to help.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of the Motley Fool Premium Consulting Service. We are diverse! Asking about an investment thesis — even if it’s our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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