Workflow
3 Unstoppable Stocks to Build a Portfolio Around for 2025 and Beyond
AMZNAmazon(AMZN) The Motley Fool·2025-01-04 11:06

Stock Market and Diversification - The stock market has historically delivered wealth-building returns, but diversification is crucial to mitigate uncertainty [1] Amazon (AMZN) - Amazon stock surged 1,300% over the last decade and 45% in the past year, driven by its dominance in US e-commerce with over 200 million Prime members [3] - Amazon's core business includes online and physical stores, generating $262 billion in revenue, with a significant opportunity in the global e-commerce market valued at $4.1 trillion [4] - Advertising is one of Amazon's fastest-growing revenue streams, contributing $53 billion in ad service revenue [4] - Amazon Web Services (AWS) revenue grew 19% YoY in Q3, benefiting from AI-driven cloud migration trends [5] - Amazon's trailing free cash flow increased 123% YoY to $47 billion, with potential for further profitable growth [6] Alphabet (GOOG, GOOGL) - Alphabet boasts 2 billion users across products like Gmail, Google Search, and YouTube, generating billions in advertising revenue [7] - Alphabet's free cash flow totaled $55 billion on $339 billion in revenue, with growth prospects supported by AI-powered search and advertising tools [8] - Google Cloud revenue grew 35% YoY, outpacing Amazon's 19%, and contributed $1.9 billion in operating profit in Q3 [9] - Alphabet shares are reasonably priced at 21 times 2025 earnings estimates, making it an attractive long-term investment [10] Berkshire Hathaway (BRK.A, BRK.B) - Berkshire Hathaway, led by Warren Buffett, is financially robust, with $37 billion in operating earnings in 2023 from businesses like GEICO and Burlington Northern Santa Fe [12] - Berkshire's equity portfolio totaled $271 billion in Q3, with $320 billion in cash and short-term investments, providing flexibility during market downturns [13] - From 1965 to 2023, Berkshire's share price returned 4,384,748%, or 20% annualized, showcasing Buffett's value investing success [14] - Post-Buffett, Berkshire is expected to remain a solid investment under Greg Abel's leadership, with a strong portfolio of businesses [15]