Amazon diversified business and several revenue flows help to ensure its long -term success.
The company uses its own e -commerce business to finance innovative, higher margins.
Thanks to the network effect, Visa loves organic growth from the global payment system.
10 shares we like more than Amazon ›
My investment strategy has always been to buy shares and plan to keep it for decades. In some cases, reserves must be abandoned if the business changes fundamentally worse, but the real value is largely increasing in the long run.
When buying shares, it is easier to accept the inevitable ups and downs and focus on the long -term value you will (ideally) from them. The permit of time and compound income that makes heavy lifting is one of the most reliable ways to store wealth in the stock market.
With $ 5,000 in investing (or really any amount), I would put it in these two companies and do not look back. They operate in a variety of industries, but both are ready to continue to be a great business for long -distance companies.
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Amazon(Nasdaq: amzn) was one of the most important growth shares in the last 20 years, ie about 11,600%compared to S&P 500400% increase through that gap.
Although Amazon is undoubtedly known for the buzzing electronic commercial business, it has become one of the most diligent conglomerates. Once upon a time, the Humbo Online Bookeller has now become involved in e -commerce, cloud computing, media and entertainment and advertising.
Electronic commerce continues to be a huge craftsmanship of money, whose North American and international segments combine more than $ 126 billion sales in the first quarter-include subscription revenue, third-party vendors and more.
For the perspective it is more than AT&T Made in the last four quarters and almost twice as much as six years ago.
Ycharts amzn revenue (quarterly) data.
With e -commerce as an engine that promotes other businesses, the company has allowed the company to invest a lot in rapidly growing segments and focus on innovation. The one that is most useful is the cloud service, Amazon Web Services (AWS).
AWS is the world’s largest cloud platform and has been the main growth engine over the last decade. To the extent that as a separate company, AWS is easily one of the top 100 income that earns state companies in the world.
This will continue to be the recipient of the Amazon profit, but other segments such as Amazon Prime, its various health care companies, advertising and logistics network offer significant long -term upside down.
Amazon has become one of the best companies for diversifying their business and income flows, and it is better to prepare it to withstand any economic conditions. If you are looking for stocks that could be considered distant, this is the one quality you want to look for.
Everything(NYSE: V) There are promotions that I have committed to constantly buy, as this is, of course, the most important company of the global payment ecosystem. And it became that just playing a mediator, combining consumers, business and banks.
Since the beginning of this year, Visa has paid 4.8 billion payments (cards, digital wallets, etc.), accepted over 150 million merchants and issued cards about 14,500 financial institutions. This is a great achievement that even another closest competitor, MasterCardwill not be able to touch for a long time.
Since Visa only operates on the payment network and does not release cards or offers credit, its business can operate with high margins and minimal credit risk. If you have a Chase Credit Card “Visa” on the network and decide not to pay the balance, you owe the chase, not the “Visa”.
Acting as high margins, relatively low risk business has provided it to free cash flows that need to be further expanded and invest in other financial innovations.
Due to the network effect, Visa gets an increase in the payment network. This is the most widely accepted card, so people want to have its cards; And this is the most belonging card, so companies want to accept Visa.
V free cash flow (quarter) free cash flow.
Despite the network effects, it is very important that the company maintains an innovative mindset, as the Landscape of Payments quickly changes with new technologies.
Fortunately, “Visa” has shown that this is not in the calm business, what you want from the industry leader and the stock you plan to keep on a long journey.
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John Mackey, former CEO of Whole Foods Market, a subsidiary of Amazon, is a member of the Board of Motley Fool. Jpmorgan Chase is a Motley Fool Money advertising partner. Stephon Walters has Visa’s positions. Motley fools are positions and recommend Amazon, Jpmorgan Chase, MasterCard and Visa. The Motley fool has a disclosure policy.
I put $ 5,000 in these promotions and I never sell at first The Motley Fool
