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Hold 3 shares for the next 20 years



It seems more difficult than ever for investors to maintain a buy-and-hold investment strategy in the midst of 24-hour news cycles reporting every small movement in the market. Infinite news about company performance can make you feel like you're doing something wrong by sticking to a stock when everyone is selling (at least that day). Even decades can be one of the best ways to build wealth. Investors should carefully look at Apple (NASDAQ: AAPL) Amazon.com (NASDAQ: AMZN) and Netflix (NASDAQ: NFLX) are preparing for success over the next two decades.

  A variety of wall clocks.

Source: Getty Images.

Apple

You've probably heard the rumors: Apple is growing. Apple pessimists point to the undisputed fact that iPhone sales are not growing the way they used to and the company can not rely on the device to secure its future. You are right that iPhone sales will play an increasingly minor role in the future of Apple, but they are wrong in terms of the future growth potential of the company.

Apple is in the midst of a major shift from Apple's dependency iPhone relies more on wearable technology and the service segment of the enterprise. And it's probably a very smart move.

Apple is the undisputed leader in wearable tech. The company's Apple Watch and AirPods earphones are leading the sale of smartwatches and earbuds. While wearables will not completely replace iPhone sales in the foreseeable future, the market for these devices is growing rapidly. Wearable Tech spending is expected to increase 55% between 2019 and 2021. And in the last quarter, Apple once again showed how well it benefits from this market: revenue from the company's wearables, home and accessories segment increased 54%. Year for year.

In addition, Apple positions itself to tap into the services market via Apple Music, iCloud, Apple News, Apple Pay, the App Store, Apple Arcade and AppleTV +. Services revenue increased 18% in the fourth quarter and now accounts for 19% of the company's total revenue after 15% in the prior year. With the launch of AppleTV +, investors can expect even greater growth in this segment and complement Apple's long-term plan to tie its devices to a never-ending revenue stream of services.

Amazon

There are a variety of reasons why you could invest in Amazon in the coming years. Let's start with the most obvious: the dominance of the online retail business. An estimated 38% of all online retail sales in the US are made on the company's online marketplace. E-commerce continues to be the main contributor to Amazon's business, and despite the company's large market share, there is room for further growth.

In 2019, only 11% of all retail sales in the US were made online, compared to 14% for two years from now. With online sales still accounting for so little of total retail sales, Amazon still has a significant opportunity to further expand its e-commerce dominance.

But of course that's not Amazon's only long-term game. In fact, the company benefits from Amazon Web Services (AWS), its cloud computing service. AWS currently holds 32% of the public cloud computing market and is well ahead of its nearest competitor, Microsoft. The cloud computing market will have a value of $ 331 billion by 2022 and Amazon already. As the clear leader in this field, it is very likely that the company will continue to dominate the market in the coming years.

If all this was not enough to convince you of Amazon's ability to grow in the coming decades, then consider the company's growing position in the Internet of Things (IoT). The IoT is still in its infancy, and Amazon has already laid the foundation for the company's key position. Amazon's echo speakers, Alexa Smart Assistant, ringtones, and other IoT devices and partnerships give the company a tremendous opportunity to benefit from the smart home market, which will reach $ 151 billion by 2024 ,

Netflix [19659009] Some investors may be looking for a Netflix recommendation and are confused. "Really?" Netflix is ​​currently a buy as the company's share price fell 4% last year and the streaming market is flooded with additional competition from Apple and Walt Disney. In fact, it is.

Let's tackle the first problem: Netflix's stock price is falling. Investors were appalled by the summer when the streaming video story reported second-quarter results that fell short of expectations. But this pessimism was out of place. In the third quarter, Netflix increased subscribers by 21%, and revenue grew 31% year-over-year. For a company that has been around for so long as Netflix, these are impressive growth figures, and they come at a time when competition in the video streaming area is increasing.

This leads us to the next crash of some Netflix investors: Will not AppleTV + and Disney + Netflix kill? To answer that, we just have to look at the current streaming dominance of Netflix. The company ended the third quarter with an impressive 158 million accounts worldwide – a huge lead over its competitors and the reason why it still has a competitive advantage over its competitors who are late.

Research has shown that users like to pay for multiple monthly video subscriptions without losing an eye. This means Netflix users can not cancel their current subscription at an additional price of $ 6.99 for Disney + or $ 4.99 for Apple TV + per month.

Think of the second part of this strategy.

It's one thing to see the great things that a company surpasses its competitors and then buys its stock. But holding on to this stock is quite another thing, with a few bad quarters going on and negative headlines dominating the news. If that happens – because it's going to happen – remember to look into why you bought the stock to see if it does not fit with your original investment strategy. And if nothing has changed, keep the course.


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