When you invest in a company, you should do so because you believe in its long-term potential. Part of this belief is understanding that volatility is inevitable and will undoubtedly lead to difficult weeks, months and even years.
No matter how much this year has passed, apple (AAPL 0.25%) When walmart (WMT -0.25%) are two stocks I believe you should buy and hold until you retire.
1. Apple
With a market capitalization of over $2 trillion, Apple is the world’s most valuable public company. As an overview, its market capitalization is more than five times that of Walmart’s. With a world-class ecosystem of products and services, Apple has fostered an unrivaled level of brand loyalty (I wear my Apple Watch, my iPhone lays down, my Apple TV playing on the screen). while I assert that I’m typing this on a MacBook). Background).
Data from YCharts.
Apple’s flagship product is undoubtedly the iPhone, which accounts for 47% of revenue, but its continued top-line growth will be greatly fueled by its entry into the financial services space. We first hinted at these plans in 2014 when we launched Apple Pay, and it was all about convenience above all else.
The arrival of the Apple Card was a sign the company was taking it more seriously, but it still relied on middlemen. goldman sachs, handling the underwriting and financial parts. Apple Pay Later, the company’s “buy now, pay later” service, was the last “if you’re not paying attention, maybe now” move from Apple. That’s not because of the service itself, but because it’s the first time Apple has underwritten and funded the loan itself.
The global financial technology market was just over $115 billion in 2021 and is expected to grow to over $936 billion by 2030. When Apple launched its efforts in the fintech space, Apple had an edge that no other fintech could match. Its smartphones and devices are in the hands of billions of people around the world.
People are drawn to convenience. And no one does a better job of simplifying a traditionally inconvenient system like the financial system than his $2 trillion company that has built an empire by doing just that.
2. Walmart
Walmart ended 2022 down about 2% after its stock fell more than 7% in the past month. No cow is as profitable as Walmart because it makes more money than any other company in the world. In the third quarter of fiscal year 2023 (FY23), he made more than $152.8 billion in revenue, up 8.7% year-over-year. This growth will not slow down either.
In a tough economic climate and fears of an impending recession, Walmart will certainly rely on its value-for-money pricing to invest in the foreseeable future. is this value. Goal (NYSE: TGT)For example, when it comes to groceries, which make up more than half of Walmart’s sales, Walmart generally offers lower prices across the board compared to Target.
Beyond short-term economic conditions that boost sales, Walmart is well positioned for the long term for two main reasons. First, its core business model is undeniable. Value never goes out of fashion because people are always trying to save money. And with Walmart’s pricing power, few companies can compete on that scale.
The second reason why we can trust Walmart as a long-term investment is our commitment to expanding our revenue stream.it’s still noticeably late Amazon But you are on the right track. In the third quarter of fiscal 2023, Walmart’s e-commerce sales grew 16% year-over-year, but even more impressive is his 30% growth in its global advertising business.
Despite being a profitable core business, investors should be encouraged by Walmart’s growth in non-consumer shopping areas. Invest and it will lead you to retirement.
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Stefon Walters said he has a position at Apple. The Motley Fool has positions in and recommends Amazon.com, Apple, Goldman Sachs Group, Target and Walmart. The Motley Fool recommends the following options: Apple’s March 2023 $120 Long Call and Apple’s March 2023 $130 Short Call. The Motley Fool’s U.S. headquarters has a disclosure policy.
