Amazon’s diversifying business and multiple revenue streams help guarantee its long -term success.
The company uses its e-commerce business to fund innovative, with a higher margin.
Visa enjoys organic growth from its global payment system due to the network effect.
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My investment strategy has always been to buy shares and plan to keep it for decades. In some cases, it is necessary to split the shares if the business essentially changes to the worse, but in the bigger part the real value comes in the long run.
Buying shares with the intention of holding them easier to accept the inevitable ups and falls and focus on the long -term value that (ideally) you will receive from them. Giving time and complex revenue makes a heavy lifting is one of the most secure ways to build a wealth in the stock market.
With $ 5,000 to invest (or whatever amount, I really) invested it in the following two companies and not look back. They work in different industries, but they are both ready to continue to be great long -distance businesses.
Image source: Getty Images.
Amazon(Nasdaq: AMZN) is one of the best growth reserves in the last 20 years, which is about 11 600% compared to S&P 500400% profits over this period.
Although Amazon is undoubtedly known for his lively e-commerce business, he has become one of Tech’s most in-depth conglomerates. The online salesman of Once-Fumble has already embarked on e-commerce, cloud calculations, media and entertainment and advertising.
E-commerce continues to be a large-scale money manufacturer, with its segments in North America and international segments being combined for over $ 126 billion sales in the first quarter, which includes subscription revenue, third-country sellers and others.
For perspective, this is more than AT&T Created in its last four quarters in combination and almost double the total revenue of Amazon just six years ago.
AMZN Revenue (Quarterly) Data from Ycharts.
The presence of e -commerce as an engine that nourishes other business endeavors allow the company to invest strongly in segments with high growth and focus on innovation. The one who has used the most is his cloud service, Amazon Web Services (AWS).
AWS is the world’s largest cloud platform and is a major growth engine in the last decade. So much that as an independent AWS company will easily be one of the 100 best public revenue generating companies.
It will continue to be the Amazon profit manufacturer, but other segments, such as Amazon Prime, its various health endeavors, advertising and its logistics network, offer significantly long -term upwards.
Amazon has become one of the best companies in diversifying its business and revenue streams, better preparing it to withstand any economic conditions. If you are looking for a stock to hold for the long road, this is a quality you want to look for.
Visa(Nyse: v) is a stock that I have committed to buying consistently, because this is probably the most important company in the worldwide paying ecosystem. And it happened by just playing a mediator, connecting users, business and banks.
By the beginning of this year, Visa had 4.8 billion payment payments (cards, digital portfolios, etc.), was accepted by over 150 million merchants and issued cards for about 14,500 financial institutions. This is a great scope that even his next close competitor, MasterCardIt won’t be able to touch for a long time.
Since VISA operates only with the payment network and does not issue cards or offers credit, its business is able to work with high margins and minimal credit risk. If you own a Chase A credit card on the VISA network and decide not to pay your balance, you owe the pursuit, not the VISA.
Working as a high margin, a relatively low risk business gave him the free cash flow he needs to continue to expand his payment network and invest in other financial innovations.
VISA receives a boost to the payment network due to the network effect. This is the most widely accepted card, so people prefer to own its cards; And this is the most widely owned card, so businesses prefer to accept a visa.
V Free cash flow (quarterly) data from ycharts.
The effects of the network aside is essential for the company to maintain an innovative way of thinking, as the landscape of payments is quickly changing with the introduction of new technologies.
Fortunately, VISA has shown that it is not in the complacency business you want from the industry leader and the shares you plan to hold for the long way.
Before you buy Amazon shares, think about it:
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John Maki, former CEO of Whole Foods Market, a subsidiary of Amazon, is a member of the Board of Directors of Motley Fool. JPMorgan Chase is an advertising partner of Motley Fool Money. Stefon Walters has positions in Visa. Motley Fool has positions and recommends Amazon, JPMorgan Chase, MasterCard and Visa. Motley Fool has a policy of disclosure.
I would invest $ 5,000 in these shares and never sold originally published by Motley Fool
