Want $1 Million in Retirement? Invest $200,000 in These 3 Stocks and Wait a Decade

Core Investment Thesis - The article emphasizes the importance of long-term investment strategies to build wealth for retirement, suggesting that investors should focus on high-quality businesses despite macroeconomic fluctuations [1] Company Summaries Alphabet Inc. (GOOG) - Alphabet is a leading technology company with a market cap of $1.8 trillion, owning Google, Google Cloud, and YouTube [3] - The company reported a 15% year-over-year revenue growth in 2024, reaching $350 billion, with Google Cloud experiencing a 30% revenue growth last quarter [4] - Alphabet's operating margin improved from 27% in 2023 to 32% in 2024, contributing to rapid growth in operating earnings [4] - The company has returned significant capital to shareholders, with a 0.5% dividend yield and a 10.8% reduction in shares outstanding over the last decade, leading to a 670% increase in EPS during the same period [5] - With a current P/E ratio of 19, below its 10-year average, Alphabet is considered undervalued, and the stock is expected to grow fivefold over the next decade [5] Airbnb Inc. (ABNB) - Airbnb has transformed the travel industry with its short-term rental platform, generating $81.8 billion in customer spending last year and achieving a 12% year-over-year revenue growth to $11.1 billion [6] - To achieve a fivefold increase in stock value over the next decade, Airbnb needs to sustain durable revenue and earnings growth, focusing on expanding its market presence in Germany, East Asia, and Latin America [7] - The company plans to diversify its services beyond core offerings, potentially including house cleaning, flights, and local experiences, which could enhance its total addressable market and maintain double-digit revenue growth [8] - Airbnb's operating margin was 23% over the last 12 months, with expectations for margin expansion as the company scales, supporting the potential for significant stock growth [9] Taiwan Semiconductor Manufacturing Company (TSMC) - TSMC is a critical player in the semiconductor industry, particularly for the AI sector, providing essential chips for companies like Alphabet [11] - The company's HPC revenue, which includes AI customers, grew 51% year-over-year in 2024, now constituting the majority of TSMC's business [12] - Analysts project that AI spending will increase from $184 billion in 2024 to $826 billion by 2030, with TSMC likely to capture a significant portion of this growth, leading to accelerated EPS growth over the next decade [13]