Could Alphabet Stock Help You Retire a Millionaire?

Core Viewpoint - Alphabet is positioned as a potential long-term investment opportunity, capable of generating significant wealth over decades, unlike many other stocks that may not withstand market fluctuations [1][6]. Investment Performance - An investment of $15,000 in Alphabet at its IPO in 2004 would have grown to over $1 million, while the same amount in the S&P 500 ETF would yield only $105,000 [1]. - The S&P 500 index has shown a compound average return of 10.3% over 20 years, illustrating the power of consistent, modest investments [2]. Investment Strategy - A hypothetical investment of $100 per month for 44 years in an S&P 500 index ETF could result in approximately $1.07 million at retirement, demonstrating the effectiveness of long-term, disciplined investing [3]. - The strategy of setting up automatic investments in diversified mutual funds or ETFs is highlighted as a viable approach for building wealth over time [4]. Company Resilience - Alphabet is identified as a rare company likely to thrive over decades due to its flexible business model and diverse revenue streams, including online search, advertising, Android, YouTube, and Google Cloud [6][7]. - The company is also exploring innovative sectors such as self-driving technology and health data, which could contribute to its long-term growth [6]. Future Outlook - Alphabet's ability to adapt and innovate positions it to potentially outperform the S&P 500's long-term returns, which could accelerate wealth accumulation for investors [7]. - A slight increase in return rates could significantly enhance portfolio value over time, with projections indicating a potential $1.5 million portfolio if returns exceed the average by just one percentage point [7].