Top 5 Stocks I Will Hold Forever

In this article, I’ll be talking about the top 5 stocks I will never sell and hold them forever in my investment portfolio. So which stocks am I going to talk about? 

Before we begin, let me give you a quick overview of the parameters I’m considering  here: 

1. Only Large Cap Blue Chip company stocks

2. Market-cap of the company

3. Revenue Diversification 

4. Income Statement (Balance Sheet & Cash Flow)

5. Dividends if any 

6. Future P/E 

7. Future Product Roadmap 

The companies I am going to talk about today are part of my TFSA portfolio.

Now, Let’s begin. 

1. Apple 

The #1 company and the largest portfolio percentage I hold is Apple. 

If you actively follow me on this blog, you might know by now that I am a huge fanboy of Apple and its products. 

But, that’s not why I Invest in Apple. Not every company I like is a part of the stocks I own. 

First of all, I really like Tim Cook and adore the way he runs the massive and the biggest tech company in the world, Apple at a scale. 

Ok, so why Apple? 

My Reasons: 

1. Apple is no longer just an iPhone company. They are way beyond it now. 

2. If you look at the Services revenue in Q2, 2020 – it’s on par with the iPhone revenue now. This is where Apple wanted to be a couple of years back and they have done it ahead of time. The Services revenue includes – iCloud, Apple Music, TV+, App Revenue (30% of every purchase) etc.

3. iPad and Mac Revenue (Product revenue-again) – On the rise as always 

4. Repeated stock splits. In 2014, 7-for-1 stock split and now 4-for-1 in 2020

5. Huge potential in terms of additional accessories – AirPods and Watch are just a start I feel. More to follow. 

6. Best Balance sheet in the entire industry with 50B+ revenue every quarter

Things I like about Apple – Recurring revenue, Balance Sheet, OS and Loyal Customers 

2. Microsoft 

Microsoft is my #2 Pick.

While Apple is for personal computing, Microsoft is for both Personal and Enterprise. 

I am holding Microsoft stock forever.

The long days of Microsoft entering the smartphone market is over. They got rid of the deal with Nokia. 

Microsoft former CEO and founder Bill Gates just did, calling losing the smartphone market to Google’s Android his “greatest mistake.”

But, since the day Satya Nadella took over the company, it is back to where it was, a growth machine. 

Reasons I Like Microsoft: 

1. Recurring revenue with Windows (yearly license fee), Office 365 revenue

2. Azure – Cloud revenue (#2 currently behind Amazon AWS currently)

3. XBOX (Gaming, Cloud Gaming services) 

4. LinkedIn and Github Revenue 

5. Microsoft Teams (Part of Office 365 and huge growth already, direct competition to Zoom and Slack)

Remember, Windows has an 80% market share worldwide!

So Microsoft’s recurring revenue will only grow bigger and better over time. 

3. Tesla 

#3 is Tesla.

Have you heard of Elon Musk and how Genius he is? 

Did you watch the Rocket launch recently? Anyways that’s part of his SpaceX which is not a subsidiary of Tesla. Both are two different units. 

The reason I mentioned the above point is just to let you know how determined Elon is in everything he does. He thinks more than anyone else on this planet does.

BTW, He was the co-founder of Paypal, just in case you didn’t know. 

Moving on. 

Why do I like Tesla and plan on holding this stock forever: 

1. Tesla is immensely well-diversified just like Apple and Microsoft are. Forget the current P/E ratio, it’s nuts I know. Look at the future of the company. They are the #1 EV maker in the world. The growth potential is huge by 2025. 

2. Tesla’s product roadmap is huge, it includes the Model S, Model Y, Cybertruck, Roadster, Solar Power, Battery, Auto Pilot, Semi (truck), Tesla Insurance and so on and so forth. 

3. Tesla is already in China where the population and growth potential is huge. (200,000 cars currently in production/year). It is already the number 1 best selling EV Car in China. The prices are competitive and so are the discounts offered to lure new customers.

4. The interesting thing about Tesla is the product vision itself, Elon plans to launch the autopilot and make a revenue of the idle Tesla cars (approximately $30,000 per car). Genius he is. 

5. New Gigafactories are being built all around the Globe – Currently one in Germany, China Texas and many more to follow. The customer satisfaction index is always high for Tesla cars and so is the technology inside the car. 

Long story short, Tesla is the #1 EV car maker in the world with more than 18% market share. 

They have Miles to go before anyone can even catch up. Elon is a sheer genius and knows exactly what to do. There are a ton of YouTube videos you can watch where the bull price targets are all the way up to $15,000. 

A couple of YouTuber’s and Podcasts I personally recommend are Cathie Wood from ARK, Rob Maurer from the Tesla Daily channel/podcasts. 

4. Amazon 

Number 4 on the list is Jeff Bezos and Amazon. 

Now, who doesn’t like Amazon or hates using it? It is a fantastic online retail space. 

Amazon needs no further introduction, everyone knows what they do. 

A couple of quick points on why I will hold Amazon stock forever: 

1. Amazon Store Revenue – not only does amazon have a store in the US but they are worldwide now – In Canada, India etc. The potential in terms of revenue is always in the multiples of “X” times. 

2. Amazon Web Services (AWS) – AWS is the number one cloud service company in the world ahead of Microsoft. They have a patented technology and its really hard for anyone to catch up with them. 

3. Amazon Prime Membership, Video and Music – Amazon prime video is a huge deal in countries like India where the OTT platform is just getting started with billion-plus users.

4. Amazon-Whole Foods revenue 

Needless to say, Amazon is here to stay and grow.

Jeff Bezos is the richest man in the world for a reason. He is brilliant and powerful making partnerships all around the world which can drive up the profits and the moolah. 

I will be holding Amazon for the long term. 

5. Facebook 

#5 is Facebook. 

I personally hate Facebook for what they do to the world.

But, when it comes to stocks and investing, you can’t really miss out on Facebook. 

The stock’s been on a blast in recent years and the growth of this company is immense. 

Here’s a couple of reasons why I like the FB Stock:

1. Mark Zuckerberg – Ya I get it, he’s in the news channels getting drilled by Congress all the time, EU and rest of the world all for the wrong reasons. But, he just comes back and makes the platform even stronger and the revenues only seem to climb higher by the day. He is only 36, brilliant mindset and on a mission to make more money for himself and the investors. He’s the fourth richest man in the world behind – Jeff Bezos, Bill Gates and Elon Musk. 

2. Watch out for the Oculus launch this year. It’s going to be huge for the AR world.

3. Facebook product roadmap – Instagram, WhatsApp and more to follow. All these companies have billion-plus active users worldwide. Facebook is always on a destructive course whether it was Snapchat or TikTok. Either way, they win with a huge active user base. 

4. 99% of the revenue Facebook generates is through digital ads, we are talking billions here, but that’s here to stay. Facebook is a monopoly and people will never uninstall it. Small-cap companies rely on advertisement spending amounts to drive up their sales and volumes. 

FB will soon enter the trillion-dollar market cap joining hands with the elite. It stands at $295 per share right now. 

Other Honourable Mentions: 

Alphabet (Google) – Google is the #1 player in the advertising space along with YouTube, owned by it. I am a huge fan of the company, but not the earnings or the stock. Reason being: 

1. Not well diversified. 

2. Except for the ads revenue, where they have the monopoly and Facebook at #2, they have nothing else to project. YouTube Premium subscription is a failure as people can still access the platform with ads. Their Pixel and Chromebooks are a big NO by the masses! Finally, I don’t like Sundar Pichai in comparison to what Satya Nadella did for Microsoft taking over from Steve Ballmer. There’s no clear vision on where Google is heading towards other than search or Youtube.

AMD – It’s definitely on my watchlist. AMD vs. NVIDIA is fun to watch. Great company, great fundamentals, excellent growth trajectory. 

NVIDIA – Again, It’s on my watchlist for now. Excellent growth company and amazing fundamentals. Do watch out!

NETFLIX –  I personally like the NETFLIX stock! NETFLIX is here to stay and grow, Its a monopoly again in the space. Watch out for the stock price. 

How To Invest In Stocks? 

1. Wealthsimple Trade – Wealthsimple Trade is a $0 commission-free stock investment platform. 

2. Questrade – Canada’s #1 Trading platform! 

Conclusion

Investing early and for the long term in reputable blue-chip companies is always the key to create wealth.

My Investment strategy is simple –

1. I Invest only on the red days when I have some cash. It need not be red days alone, as long you’re investing in the Blue chips, it doesn’t really matter when you invest. You just gotta hold it for the long term to see the true potential of the investment. 

2. My stock choices are limited. I usually watch 5-10 stocks at any given time. Not more than that. The lesser the confusion, the more clarity. 

3. I only invest in the companies I know 100% about. (Investor Relations page)

4. I don’t get into FOMO or sell stocks for the short term gains

5. If I buy one stock (I mean just one) of a company, I know I will keep it for the next 5 years minimum. (This avoids the FOMO in the first place)

6. Always look at the financials of the company/growth potential

7. Keeps adding 1, 2 or 100 stocks consistently to average out the dollar costs. 

8. Do not invest using margin/options, always go for the long term. It works trust me!

Finally, if you are young, start with even $100 and grow baby steps. Taking action is important. 

Thanks for reading! Let me know your thoughts and comments below. 

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