3 Exceptional Stocks That I Have No Plans to Sell

3 Exceptional Stocks That I Have No Plans to Sell

When I buy a stock, I try to remember that I am buying a small part of a company and plan to hold my shares for the long term. Warren Buffett said his favorite holding period is forever. While this is an aspiration more than anything else, it serves as an important reminder that investment success comes from identifying great companies and their ability to grow over decades .

Even though some stocks in my portfolio have a lot more to prove to stay there forever, there are others that I can’t see myself selling. These companies have long experience and competitive advantages that should pave the way for a bright future. As the saying goes: “Never say never”. Yet with these stocks, I’m on the verge of never selling as much as possible.

Costco

Every time I struggle to find a parking space or wait in the long (but efficient) line to pay, I wonder why I don’t own more. Costco wholesale (NASDAQ: COST) action. While most of my fellow shoppers probably don’t have the same thought, we’re all here to take advantage of bulk quantities and low prices. History tells us that this business model has been hugely successful, with Costco shares gaining more than 81,000% since its inception. Initial Public Offering.

Costco ended its second quarter of fiscal 2024 (ended February 2024) as the third-largest global retailer and 12th-largest Fortune 500 company, with 874 locations worldwide. Its membership model works well. More than 92% of Costco members renew their memberships, and the company brought in nearly $5 billion in dues over the past 12 months.

Low prices keep customers coming, and because Costco sells fewer items than its competitors and turns over its inventory very quickly, it can sometimes even sell items before they need to be paid for. This improves cash flow and reduces expenses.

Amazon

If there’s one retailer that first comes to mind other than Costco, it has to be Amazon (NASDAQ:AMZN). I don’t think I’m the only one who finds myself shopping there before almost anywhere else. Over the past 12 months, Amazon stock is up 82%. However, during the 2022 market crisis, the company fell by almost 50% as it struggled to get its finances in order following the massive distribution expansion necessitated by increased orders. linked to the pandemic.

Amazon is certainly back on track and ready to re-accelerate its growth. In 2023, Amazon grew revenue by 12%, but the most impressive results come further down the income statement. Operating income increased by 202% and net income increased by 1,226%. These results are due to the recovery of e-commerce, which has finally turned a corner after its difficulties in 2022. It is also worth remembering that Amazon Web Services (AWS) remains the leader in cloud infrastructures and has increased its turnover by 13% in 2023.

Apple

Consumer electronics giant Apple (NASDAQ:AAPL) has been making headlines lately for all the wrong reasons. Finding itself increasingly under the microscope of federal antitrust investigations, the stock has fallen 12% over the past three months. This news is certainly worth watching, but it will take years to materialize and the rather modest decline in Apple’s stock price suggests that the market’s level of concern is less severe than some headlines indicate .

Taking a step back, it is important to remember that Apple is still an omnipresent brand around the world, and particularly in the United States. Known for its iPhone and other consumer electronics, Apple is slowly becoming a software company. Apple now has an installed base of more than 2.2 billion devices.

This creates an ecosystem of apps and subscription services that provide a high-margin revenue stream for the company. In the most recently reported quarter, services revenue (where all subscription products are reported) increased 11% to $23 billion. This represents 19% of total turnover, compared to 18% the previous year.

Why I “never” sell

Are there any scenarios where I could sell these companies? Of course, anything is possible. However, these three companies are so competitively advantaged and experiencing such impressive growth at scale that it’s hard to envision a scenario in which they wouldn’t deserve a spot in my portfolio. Investing can be as simple or as complicated as you want it to be. In my mind, buying and owning these three stocks is about as simple as investing.

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Jeff Santoro holds positions in Amazon, Apple and Costco Wholesale. The Motley Fool holds positions and recommends Amazon, Apple and Costco Wholesale. The Motley Fool has a disclosure policy.

3 Magnificent Stocks That I “Never” Sell was originally published by The Motley Fool

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