Three Shares with Potential for Significant Asset Accumulation
Dive into some safe bets for long-term investment growth with our pick of three market leaders!
1. Walmart
This colossal retail giant, that is, Walmart (WMT 1.01%), reigns supreme as the world's largest brick-and-mortar retailer. With nearly 11,000 stores globally and over 5,000 in the U.S., it's hard to miss the Walmart name.
Walmart's growth journey has been a mixed bag, with certain periods of complacency accounting for missed opportunities, like failing to recognize the threat of Amazon and maintaining empty store shelves. However, a cultural revolution under CEO Doug McMillon has transformed Walmart into a lifestyle company, offering premium goods like private-label wine, plant-based ice cream, and in-store technology installation services.
These strategic shifts led to significant growth in the high-income market, complemented by continued shopping from lower-income segments. Rival Target has stagnated, leaving Walmart well-positioned for the foreseeable future.
2. Apple
Apple (AAPL 1.82%) needs no introduction. As the world's most valuable brand, it also boasts the world's highest market cap, thanks to the massive popularity of the iPhone. Although iPhone sales have plateaued since 2021, Apple's stock has continued to climb due to its reputation as a trailblazer and its focus on future growth engines, like artificial intelligence (AI).
AI is one of Apple's growth drivers, with the Apple Intelligence platform showing promise as a personalized AI tool. However, its widespread adoption is still underway, while Apple refines its solution. Once it starts, Apple's AI effort could drive iPhone growth toward high single-digit, making it a solid bet for long-term investors.
3. Alphabet
Lastly, consider Alphabet (GOOG 1.75% and GOOGL 1.68%), the parent company of Google. Although its growth days may have passed, Alphabet still dominates the search engine/web advertising industry and the leading mobile device operating system market. Google's search revenue grew by 12% in Q4 2023, driven by increasing internet connectivity and dependency on mobile devices.
Artificial intelligence (AI) is likely to contribute to Alphabet's long-term success thanks to its AI-powered chat platform, Gemini, and its progress in quantum computing. Alphabet's quantum chip, Willow, completed calculations in five minutes that would take conventional modern-day computers more than 10 septillion years to complete, showcasing the company's commitment to innovation and growth.
Long-term Growth
These three stocks offer a stable foundation for long-term growth, although they face unique challenges and opportunities. Walmart's focus on low prices, e-commerce, and omnichannel capabilities will support long-term growth. Apple's innovation and brand loyalty, combined with its ecosystem, lay a solid foundation for its long-term prospects. Lastly, Alphabet's domination in cloud computing and AI, along with its diverse portfolio and investments in quantum computing, highlight its potential for sustained growth.
- Investing in Walmart (WMT 1.01%) could be a pragmatic decision, given its position as the world's largest brick-and-mortar retailer with a significant presence in the high-income and lower-income markets.
- Apple's (AAPL 1.82%) focus on AI as a growth driver and its trailblazing reputation make it an interesting long-term investment, particularly given the potential for high single-digit growth in iPhone sales once its AI solution becomes widely adopted.
- Alphabet (GOOG 1.75% and GOOGL 1.68%) could be a stable choice for long-term finance, given its domination in the search engine/web advertising industry and mobile device operating system market, as well as its progress in AI and quantum computing.
- It's crucial for investors to keep an eye on the stocks of these market leaders, including Walmart, Apple, and Alphabet, as they navigate unique challenges and opportunities in the ever-evolving world of finance and technology, such as the overvaluation of certain stocks and the ever-changing landscape of stocks like clinics.
