However, there are a handful of companies that have such solid business models that they are likely to stay at the top of their markets for a long time. These are the types of businesses you want to invest in. If you have $ 5,000, here are three virtually invincible stocks you can buy right now to make a lot of money in the long run.
It would be extremely difficult for a rival to dethrone Amazon.com (NASDAQ: AMZN) in electronic commerce. The company has a well-known brand. It has a massive distribution infrastructure. Amazon claims around 40% of the online sales market, according to market researcher eMarketer. Company # 2, Walmart, has an e-commerce market share of only 5%.
Amazon has stiffer competition for its Amazon Web Services (AWS) cloud hosting business. But he’s still the undisputed leader. As organizations migrate applications and data to the cloud, it seems very likely that AWS will continue to generate impressive growth even if it loses market share along the way.
Can whatever stop Amazon? Perhaps the biggest threat is that government regulators could limit the company’s expansion plans. It is also possible (but I think it is unlikely) that Amazon will be broken. Even if that happens, my intuition is that the sum of the parts would potentially be worth more than the whole.
Unless there is a major roadblock, Amazon looks set to continue generating solid growth despite its huge size. The company has its eyes riveted on the lucrative healthcare market and acquires Zoox to enter the technological arena of the autonomous car. Amazon is not completely invincible, but it is not too far.
2. Intuitive surgery
Speaking of the healthcare sector, one company absolutely dominated the robotic surgical systems market for two decades – Intuitive surgery (NASDAQ: ISRG). Over 5,500 of Intuitive’s da Vinci systems are installed worldwide. To date, more than 7.2 million surgical procedures have been performed using these systems, including 1.2 million procedures in 2019 alone.
The success of Intuitive Surgical has attracted new rivals. Two health giants, Medtronic and Johnson & Johnson, have robotic surgical systems that are already in direct competition with Intuitive products or will do so soon.
However, I am not too afraid that Intuitive will lose its grip on the market leader. Existing Intuitive customers are highly motivated to get the most out of their investment rather than moving to a competitive system. Newcomers will also be disadvantaged by Intuitive’s long history of security.
More importantly, I think the market will grow enough to support multiple players with Intuitive Surgical # 1.
Some believe that the COVID-19 pandemic could accelerate the transition from cash to digital payment methods, with consumers worried that using physical money could increase their risk of being infected with viruses. Although some studies have shown that these fears are exaggerated, perception is sometimes more important than reality. I think Square (NYSE: SQ) is well positioned to be a big winner in the growth of digital payments.
Square has firmly established itself as the leader in providing payment technologies and services to small and medium businesses. You likely see small business credit card devices frequently if you shop at these small retailers. What you don’t see, however, is the impressive ecosystem that Square has built to serve these businesses, from payroll applications to professional debit cards.
I’m looking for Square to leverage its relationships with small and medium-sized businesses to gain more traction by helping them in new ways, including creating ecommerce sites. I also expect the company to make new breakthroughs with larger customers.
Square’s peer-to-peer digital payment for Cash app competes well with Pay Palthis is Venmo. The company expects to have an opportunity of at least $ 60 billion a year in the United States alone with the Cash App. With its strength in the financial ecosystems of businesses and individuals, it is not unreasonable to view Square as the “Amazon of financial services”. I think fintech’s growth and Square’s leadership position make it another almost unstoppable security for long-term investors to buy.