5 Magnificent Investments That I’m “Never” Selling

Next up is fellow tech giant Amazon.com (NASDAQ: AMZN). Resting on a massive foundation of e-commerce operations, Amazon is always ready to strike out in new directions. The company is already a leading name in cloud computing and AI services, not to mention its world-class shipping network and award-winning media studio.

From smart home devices and audio books to high-end grocery stores and online pharmacy services, Amazon’s portfolio of products and services is almost as impressive as Alphabet’s. The management team is famous for running Amazon like it was “day one” for a brand new start-up, even though it’s a trillion-dollar company with decades of operating history.

Again, flexibility is the secret to a long and thriving business history. Amazon has it in spades, and I trust this stock to deliver solid gains for the foreseeable future.

This one might be a surprise, given the focus on extreme stability in the first few picks. But I would argue that SoundHound AI (NASDAQ: SOUN) could become the next Alphabet or Amazon in due time.

It’s a radically overpriced small-cap stock today, and I recommend letting the stock cool down a bit before buying your first SoundHound AI share. It trades at 76 times sales on December 6, lifted by a weeks-long meme stock campaign. But be sure to keep an eye on SoundHound AI when the price spike fades out, as it surely will in the near future.

I’m talking about an unmatched AI innovator that is building a huge list of household-name clients, ranging from auto makers and restaurants to consumer electronics designers and phone menu systems. SoundHound AI isn’t the only name in the game, but the company’s services are based on AI research and data collection. Several tech giants have demonstrated how difficult this task is by shelving their own research to buy experts like Shazam or Dragon Naturally Speaking.

I suppose someone might want to acquire SoundHound AI too, but I never count on that kind of speculation. Voice-controlled devices are already popping up everywhere. The market is worth about $140 billion today and should bloom into a trillion-dollar revenue opportunity over the next decade or so. I want to own the leading name in this revolution.

Again, I don’t recommend buying the overheated SoundHound AI stock today. Let it cool down before building a robust position. If you start from a more reasonable price and valuation, SoundHound AI’s stock should serve you well in the long run.

I’m pretty sure that cryptocurrencies will disrupt financial systems and traditional payment methods someday. Almost nobody uses cryptos instead of dollars in their daily life quite yet, but that day will come. When it does, I don’t want to kick myself for failing to grab some Bitcoin (CRYPTO: BTC) while it was new and cheap.

That might sound like a joke, since Bitcoin just passed the $100,000 price point for the first time. That’s not “cheap” unless you have caviar for breakfast and a new car every Thursday.

But you could have said the same thing when Bitcoin backed down from $64,000 per coin in 2021 or when it peaked just below $20,000 in 2017. The difference this time is that the financial world is taking crypto seriously and digital assets are easily available in the form of spot Bitcoin ETFs.

I don’t know what a Bitcoin might cost in 2025 or 2030. And this isn’t a risk-free idea, since new innovation could disrupt the crypto market and Bitcoin platform at any time. Still, the era of all-digital finance is coming and Bitcoin is the closest thing to a stable long-term bet on that unstoppable trend. Hence, I expect to own Bitcoin and/or Bitcoin-based funds “forever.”

Maybe you expected an elaborate forever-stock case for some of my biggest winners. I’ve made more money on media-streaming pioneer Netflix (NASDAQ: NFLX) and robotic surgery innovator Intuitive Surgical (NASDAQ: ISRG) than anything else, and you’ve seen me sing their praises over the years. Perhaps you wanted a long-term investment thesis for more recent ideas or turnaround stories with strong prospects in the far future. Media platform expert Roku (NASDAQ: ROKU) springs to mind here, along with restaurant management software developer Toast (NYSE: TOST).

All of these names deserve your consideration, and some may be great buys today. I’m just not entirely sure that I’ll own them forever.

The forward-looking growth ideas come with substantial risks and tough competition, while the proven winners might saturate their target markets and run out of game-changing ideas in a decade or two. A 10-year position isn’t close enough to qualify for this list of everlasting investments.

That’s why I’m talking about these handpicked survivors today. They may not be flashy get-rich-quick ideas, but they can build wealth for many decades to come.

Amazon and Alphabet are flexible and deep-pocketed enough to belong on this list. The Vanguard fund — or another broad market tracker — could easily be the only holding in an effective retirement portfolio. I think Bitcoin is important and game-changing enough to have a seat at every table. And SoundHound AI may look out of place here but AI-powered voice controls should be a trillion-dollar market someday.

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

• Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $350,239!*

• Apple: if you invested $1,000 when we doubled down in 2008, you’d have $46,923!*

• Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $492,562!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.

See 3 “Double Down” stocks »

*Stock Advisor returns as of December 9, 2024

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Anders Bylund has positions in Alphabet, Amazon, Bitcoin, Intuitive Surgical, Netflix, Roku, SoundHound AI, Toast, and Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Alphabet, Amazon, Bitcoin, Intuitive Surgical, Netflix, Roku, Toast, and Vanguard S&P 500 ETF. The Motley Fool has a disclosure policy.

5 Magnificent Investments That I’m “Never” Selling was originally published by The Motley Fool