Two Unwavering Shares to Purchase in 2025 and Maintain Perpetually
Discovering the best growth stocks can significantly boost your savings over time, and these two companies are worthy contenders: Amazon (AMZN 0.24%) and Berkshire Hathaway (BRK.A 2.50%, BRK.B 2.48%). Let's delve into why each of these giants is a solid investment choice.
1. Amazon
With a market cap of an astounding $2.46 trillion, Amazon is a force to be reckoned with. Despite its size, the company continues to target massive opportunities for long-term growth. Prime memberships are proving to be a valuable asset, currently standing at over 200 million customers who offer a steady stream of revenue as loyal clients.
Amazon's success is not limited to its e-commerce division, which generated $242 billion in revenue in the past year. The company's cloud computing arm, responsible for just 17% of revenue, significantly contributes to operating profit. Amazon's cloud services saw a surge in revenue in 2024, based on investments in providing AI tools for organizations.
Amazon's dominance in the e-commerce market and its cloud services business is what makes it an attractive stock for retirement accounts. Analysts predict a 11% revenue increase in 2025, with margins set to fuel 22% annualized earnings growth over the next few years [1]. In light of this, investors can anticipate outstanding returns for the coming five years.
2. Berkshire Hathaway
Berkshire Hathaway is an unstoppable stock, boasting a wealth of businesses under Warren Buffett's expert guidance. Since he acquired a controlling stake in the former textile company back in the 60s, Berkshire's revenue has skyrocketed to an astonishing $37 billion in 2023.
The company's vast cash reserves of $320 billion make it an excellent candidate for taking advantage of future investment opportunities. This is not to mention that Berkshire also holds notable stakes in Apple, Coca-Cola, and American Express, which collectively amounted to $139 billion at the end of Q3 2023.
Berkshire's stock value has doubled over the last five years, consistently rewarding investors. Buffett has identified Greg Abel, the current CEO of all Berkshire's non-insurance businesses, as his successor. Abel has been prepared to take on the role since day one and is responsible for making all investment decisions.
Investing in Berkshire Hathaway means investing in a collection of powerful businesses, along with the talented individuals who drive them. Buffett's wisdom and Abel's leadership assure investors that Berkshire stock will continue to deliver impressive returns long after Buffett's tenure.
Sources:[1] Yahoo! Finance[2] MarketWatch[3] Amazon.com Q2 2022 financials
- For those considering long-term investment strategies, the financial performance of Amazon, with its predicted 11% revenue increase in 2025 and 22% annualized earnings growth, makes it an attractive option for potentially high returns.
- Berkshire Hathaway's impressive financial history, including its $320 billion cash reserves and over $139 billion invested in companies like Apple and Coca-Cola, highlights its potential for capitalizing on future opportunities in the finance and investing world.
