Expect a double or even a triple-digit growth if you are patient enough to hold these stocks in your portfolio for a decade and a half.
A lot can change in a year. And here, we are talking about 14 years down the line. 14 years is a long time for Wall Street, especially during the times when every day is disruptive and revolutionary. Artificial intelligence and machine learning, 5G revolution, the impending blockchain domination, popularity of cryptocurrency, the world already doesn’t look the same as it was a few years ago, let alone be 14 years later.
In a dynamic scenario like this, the only thing that provides an edge to investors and innovators is a futuristic approach. Predictions are all we have and when it comes to the stock market, predictions are paramount.
So what will the stock market look like in 2035? What companies will dominate the top 9 spots of Wall Street in the time to come? If you have already put your money in a few of these companies, you are hitting the right chords in the investment world. However, if you have not, it’s not too late.
So without any further ado, here is the list of 9 stocks that will be the market vanquishers by 2035.
9 Stocks Predicted to be the Largest by 2035
Microsoft (NASDAQ: MSFT)
We begin with Silicon Valley’s big bull whose legacy has remained intact for over two decades now. With a valuation of $1.84 trillion, it isn’t really hard to tell why Microsoft will remain among the top 10 buys of Wall Street.
In the last 5 years, the company has grown by 16.72% per annum and it is projected to continue for the next 5 years at 18.17% per annum. The biggest motivator behind Microsoft’s recent and projected growth is its commercial cloud business which brought in over $50 billion in revenue in FY20.
Not to mention, its legacy products and operating system for Windows are undisputed in the market and will continue to stockpile the revenues year-over-year. One of the biggest edges that MSFT enjoys is its impressive cash flow which can easily rescue the company during headwinds by the means of acquisitions, making it a stock to buy for the long run.
Apple (NASDAQ: AAPL)
A company with $100 billion in operating cash flow leaves very tiny room for unprecedented scenarios to wipe off its legacy. The next stock to buy on our list is again, a trillion-dollar mogul, Apple Inc. This figure becomes even more impressive due to the fact that it was built in the period of trailing 12 months.
What calcifies AAPL’s position as a market dominator for decades to come is the visionary leadership put together with a rock-solid moat. 5G revolution is once again ready to change the face of the telecom industry in the years to come. And while most of the companies are still strategizing the transition, Apple already launched iPhone 12, 12 mini, 12 Pro, and 12 Pro Max with 5G compatibility.
Amazon (NASDAQ: AMZN)
This is one company that can single-handedly outperform every other tech giant in the next 14 years. Experts predict that Amazon might be the largest company by valuation in the world by 2035.
While the e-commerce retail operations of the company continue to generate a hefty portion of its total profit at $340 billion, Amazon Web Services (AWS) is the emerging game-changer. In 2020, AWS’s revenue outperformed the market leader Oracle, certifying that the future of cloud computing might be in Bezos’ ballpark.
Coming back to the principal revenue stream of Amazon, retail e-commerce might look like sitting at the zenith of growth but it has only started. The global e-commerce sales in 2020 amounted to $4.28 trillion. The number is expected to reach $5.4 trillion in 2022 and a whopping $6.38 trillion by 2024, according to Statista.
By 2040, investors can expect anything around 95% impetus in global e-commerce retail.
There is a lot adding to the optimistic predictions for AMZN 14 years down the line. In the last 5 years, the company has grown at an unbelievable rate of 100.6% per annum, adding to its $1.65 trillion market valuation and a whopping $67.21 billion in operating cash flow. And with its multi-diverse business expansion, the future only gets brighter.
Alphabet (NASDAQ: GOOGL)
With $73 billion in operating cash flow and $1.47 trillion in valuation, Google’s parent company has a lot paving a solid future for it.
Recently, Alphabet has also announced a stock buyback program that would cost it $50 billion. The plan is to buy back stocks every quarter worth $10 billion. This strategy will help Alphabet reduce the outstanding shares and increase earnings and cash flow per share.
Square (NASDAQ: SQ)
You might be surprised at this one, but it is Square and not PayPal that will dominate the fintech industry on Wall Street in the years to come. Therefore, it’s a stock worth buying for the long run. To begin with, Square has cleared the chartered process that allows it to operate its own bank. That itself is a big indicator that the company is coming for the digital banking pie with big plans.
Watch: How Square works
Another area where Square is emerging a clear winner is its peer-to-peer digital payment tool, Cash App. To compare it with Venmo by PayPal, Cash App has already acquired 36 million users within a small span of three years, with annual user acquisition cost as low as $5.
Square is now worth $101.54 billion with $162.57 million in cash flow in the trailing 12 months.
Operating at a profit margin of 2.72%, it is expected to grow at 56.53% per annum for the next five years which is quite a promising number.
Berkshire Hathaway (NASDAQ: BRK.A)
The world trusts Oracle of Omaha with its money. And if Warren Buffett‘s successor chooses to continue with his investment style that prefers cyclic businesses and dividend stocks, the company would definitely land up in the top 10 stocks by 2035.
According to the most recent 13F filing of Berkshire Hathaway on Feb 2, 2021, the value of the company’s public market equity portfolio stood at $270 billion. Overall, Buffett’s investment wagon is valued at $645.12 billion and operates at a profit margin of 41.78%.
Famous for investing in more traditional and cyclic business stocks with good dividends, the company has also given a sign of transition recently after Apple became its largest stock holding in the course of many years. This is a sign that Berkshire might finally have left its cynicism about the technology sector behind and decided to go along with the rapidly changing world.
Facebook (NASDAQ: FB)
Despite headwinds of government regulations and data privacy, Facebook has a lot of ways to still go right and retain its position among the top 10 stocks in the next one and a half decade. With more than 44% of the world’s total population visiting its social platforms, it has an $880 billion valuation. Facebook will still have a chance to keep its legacy intact even if it is spun off.
Facebook has $39.99 billion in operating cash flow and $15.68 billion in free cash flow that makes it capable enough to acquire competition or promising companies.
Running on a profit margin of 35.74%, the social media behemoth is still to leverage the full potential of monetization across its raw platforms like WhatsApp and Messenger. Additionally, with 2.70 billion monthly active users, which is a growth of 12% year-over-year, it is unlikely that Facebook will seize being the first choice of advertisers.
Over the last 5 years, FB has grown at 42.12% per annum. It is expected to continue at 23.70% per annum over the next five years. The figures approve FB to be in your list of stocks to buy for the long run.
Visa (NASDAQ: V)
The world’s largest payment processor definitely needs a spot in your portfolio because the future is bright for Visa. The world we live in today, and the future to come, is tailor-made for a double or probably triple-digit growth for Visa.
To begin with, countries are moving towards a cashless society and digital payment is the future. As icing on the cake is the duopoly in the credit processing industry that Visa along with Mastercard enjoys. Let’s not forget the massive growth of e-commerce worldwide which is projected to spike 95% by 2040.
One of the most impressive things about this stock to buy is its operating margin. An operating margin of anything above 15% is a promising bet for investors. However, Visa has taken the market by storm with its 65% operating margin.
Sea Limited (NASDAQ: SE)
This is perhaps the most surprising entry in the list of stocks to buy for the long run. Sea Limited is emerging as a dominant business force in Southeast Asia and Latin America, thanks to its long network of verticals spanning eSports, mobile gaming, digital payment, e-commerce, food delivery services, and AI industries.
One of the most creative and unique of all Sea Limited’s ventures is Garena+, a mobile gaming social media platform where gamers can create groups, chat with friends, make in-game purchases, among many others. The platform has already exhibited a 111% growth in bookings year-over-year, reaching an astounding $1.03 billion in Q4 20.
Sea Limited’s market valuation amounts to $128.8 billion with an operating cash flow of $937.5 million.