There are a variety of reasons people invest in the stock market. Beyond near-term benefits like making money from growth stocks and even long-term benefits like passive retirement income, investing in the stock market can help you create generational wealth.
In general, stocks you can hold forever and pass on to the next generation are going to be solid, established stocks that can withstand the vicissitudes of time. Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), and Netflix (NASDAQ: NFLX) are three great candidates.
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1. Apple
Apple has created a formidable ecosystem of interconnected devices that sets it far above the competition. Users love the Apple experience and tend to become loyal fans, upgrading to new devices and buying an array of Apple products that all work together. Putting the user experience first, and launching designs, features, and services to achieve that, keeps customers coming back.
The company has been rolling out Apple Intelligence at a pace that has lagged some of its peers, but customers haven’t been put off by that, and the iPhone continues to be a hot seller. Management is also planning a major overhaul of Siri, expected in the coming months, that could change the way users interact with their devices and attract even more customers. Plus, the market is now lauding its slower rollout, since it’s planning the launch at a fraction of the cost of the other hyperscalers.
Apple has been an incredible wealth generator over time, and it’s the kind of company that should continue to be a leader in its space for years.
2. Amazon
Amazon recently became the largest company in the world by sales. It continues to generate higher sales and robust profits, and it’s the top company in two major growth sectors, e-commerce and cloud computing.
Although the market has been concerned about its artificial intelligence (AI) spending, the company maintains that it’s positioning itself for a huge shift to the cloud. It’s planning to spend $200 billion in capital expenditures this year, and management says demand is outsize, and that it’s monetizing capabilities as fast as it creates infrastructure.
There is so much going on at Amazon at any specific time, and it’s not just AI. The company’s Leo satellite program is a real competitor to Elon Musk’s Starlink business, and it recently launched the fastest satellite antenna ever built.
