One of the most profitable ways to invest is to buy stocks and wait. Holding shares for decades helps you tap into the power of compound interest and steer clear of taxes that would otherwise eat up your earnings.
Furthermore, it offers peace of mind because all you must do is invest in promising brands and let your gains grow over time.
A case in point is Warren Buffett’s subsidiary Berkshire Hathaway, which has flourished by a compound annual rate of 20 percent for decades and recorded significant returns.
The secret sauce is to identify the correct stocks. Below are some stocks you can purchase and benefit from decades later.
Okta (OKTA) is a cloud-based maker of security and identity tools with a colossal market value exceeding $30 billion, thanks to its dominance in a seemingly new yet promising category.
The firm engineers and sells tools that enable one-time sign-on and multi-factor authentication to offer clients and workers hassle-free and secure access to networks.
Its flourishing market has expanded significantly from $18 billion in 2017 to $80 billion today. The firm has also thrived with a revenue increase of 40 percent each quarter since it hit the limelight and is getting more profitable over time.
With the increasing demand for security services, Okta’s revenue will likely touch $1 billion by 2021’s end in a sector worth $80 billion.
- Stitch Fix
Stitch Fix (SFIX) is a web-based personalized styling platform. It went public in 2017. Since then, it has been highly volatile. Still, the firm stands out on the stock market, and its price often jumps by the double-digit percentage per year. This is an obvious indication that shareholders are still monitoring the brand.
Stitch Fix follows a distinct strategy for apparel sales. The firm has gathered data on its clients’ fashion preferences for around a decade. In essence, its approach is based on shipping clients boxes of five pieces of attire, allowing them to retain whatever they like and ship back the rest.
Stitch Fix also plans to roll out a data-science-based solution along with its Direct Buy offering targeting newbie clients. This approach will enable the firm to offer a tailored selection of attire for new shoppers based on their preferences.
This launch will run parallel with new leadership; a move anticipated to bring a positive effect on the brand’s standing. Boasting a market cap of under $5 billion, SFIX has huge potential if it makes the most of Direct Buy.
Buy and hold investments require a keen eye for promising companies, and these two are perfect examples of what a future market-mover looks like. But this isn’t all; there are more firms to consider out there.
Author Bio: Blair Thomas has been a music producer, bouncer, screenwriter and for over a decade has been the proud Co-Founder of eMerchantBroker, the highest rated consumer financing service in the country. He has climbed in the Himalayas, survived a hurricane, and lived on a gold mine in the Yukon. He currently calls Thailand his home with a lifetime collection of his favorite books.