Long-Term Investing: 2 Monster Stocks to Own for Decades

Core Viewpoint - The article emphasizes the importance of long-term investing, highlighting that despite recent market declines, quality stocks present great buying opportunities for investors willing to hold for the long term [1][2]. Group 1: Amazon - Amazon has established leadership in e-commerce and cloud computing, achieving net sales of $638 billion in the latest full year [5]. - The company has consistently grown revenue, net income, and return on invested capital over the years [5]. - Amazon's strategic revamp of its cost structure allowed it to return to profitability and operate more efficiently, particularly by shifting to a regional fulfillment system [7]. - The company's competitive advantages include its extensive fulfillment network and Prime subscription program, which enhance customer satisfaction and loyalty [8]. - Amazon Web Services (AWS) is a significant profit driver, with an annual revenue run rate of $117 billion, and the company is heavily investing in AI technology [9]. - Amazon shares are currently trading at 33 times forward earnings estimates, down from over 42, making it an attractive investment opportunity [10]. Group 2: Coca-Cola - Coca-Cola has seen a 15% increase in stock price this year, contrasting with the struggles of major indexes [11]. - As the largest nonalcoholic beverage maker, Coca-Cola provides safety and stability for investors, especially during economic downturns [11]. - The company boasts a strong brand portfolio and extensive distribution network, contributing to its competitive moat [12]. - Coca-Cola continues to innovate with new flavors and experiences tailored to different markets, supporting its growth [13]. - The company has a long-standing commitment to shareholders, having increased its dividend for over 50 consecutive years, earning it the title of Dividend King [14]. - While Coca-Cola may not offer explosive growth compared to tech companies, it has consistently grown revenue and net income, and is currently priced at 24 times forward earnings estimates, making it a reliable long-term investment [15].