Top 5 stocks I will hold forever

In this article, I will talk about the top 5 stocks that I will never sell and keep in my investment portfolio forever. So what actions am I going to talk about?

Before we begin, let me give you a quick overview of the settings I’m considering here:

Only stocks of large-cap blue-chip companies
Company market capitalization
Income diversification
Income statement (balance sheet and cash flow)
Dividends if applicable
Future P/E
Future product roadmap

The companies I’m going to talk about today are part of my TFSA portfolio.

Now let’s get started.

1. Apple

The #1 company and largest percentage of portfolio I own is Apple.

If you actively follow me on this blog, you may know by now that I am a big fan of Apple and its products.

But that’s not why I’m investing in Apple. Not every company I like is a stock I own.

First of all, I really like Tim Cook and I love how he runs the biggest tech company in the world, Apple at scale.

Ok, so why Apple?

My reasons:

Apple is no longer just a iPhone Company. They are well beyond that now.
If you look at service revenue in Q2 2020, it’s now comparable to iPhone. This is where Apple wanted to be a few years ago and they made it happen in advance. Services revenue includes – iCloud, Apple Music, TV+, app revenue (30% of each purchase), etc.
iPad and Mac revenue (product revenue again) – Up as always
Divisions of repeated actions. In 2014, share split at 7:1 and now at 4:1 in 2020
Huge potential for additional accessories – AirPods and Watch are just the start, in my opinion. More to follow.
Best balance sheet in the entire sector with more than 50 billion in revenue each quarter

What I like about Apple – Recurring revenue, balance sheet, operating system and loyal customers

2.Microsoft

Microsoft is my #2 choice.

While Apple is aimed at personal computing, Microsoft is aimed at both individuals and businesses.

I will hold Microsoft stock forever.

The long days of Microsoft’s entry into the smartphone market are over. They got rid of the Nokia deal.

Former Microsoft CEO and founder Bill Gates just did, calling the loss of the smartphone market to Google’s Android “the biggest mistake.”

But since the day Satya Nadella took over the company, it has returned to where it was, a growth machine.

Reasons why I like Microsoft:

Recurring revenue with Windows (annual license fee), Office 365 revenue
Azure – Cloud revenue (currently #2 behind Amazon AWS currently)
XBOX (games, cloud gaming services)
LinkedIn and Github revenue
Microsoft Teams (part of Office 365 and already seeing huge growth, direct competition to Zoom and Slack)

Don’t forget that Windows has 80% market share worldwide!

So, Microsoft’s recurring revenue will only grow and improve over time.

3.Tesla

Number 3 is Tesla.

Have you heard about Elon Musk and how awesome he is?

Have you watched the Rocket launch recently? Anyway, this is part of its SpaceX which is not a subsidiary of Tesla. The two are two different units.

The reason I mentioned the point above is just to let you know how determined Elon is in everything he does. He thinks more than anyone on this planet.

BTW, he was the co-founder of Paypal, just in case you didn’t know.

Let’s move on.

Why I love Tesla and plan to hold this title forever:

Tesla is extremely diverse, as are Apple and Microsoft. Forget the current P/E ratio, it’s crazy, I know. Look at the future of the business. They are the world’s leading electric vehicle manufacturer. The growth potential is enormous between now and 2025.
Tesla’s product roadmap is huge, it includes Model S, Model Y, Cybertruck, Roadster, Solar, Battery, Autopilot, Semi (Truck), Tesla Insurance, etc.
Tesla already has a presence in China, where the population and growth potential are enormous. (200,000 cars currently in production/year). It is already the best-selling electric car in China. The prices are competitive, as are the discounts offered to attract new customers.
The interesting thing about Tesla is the product vision itself, Elon plans to launch Autopilot and make income from idle Tesla cars (around $30,000 per car). He’s great.
New gigafactories are being built all over the world – currently one in Germany, China, Texas and many more to follow. The customer satisfaction rating is consistently high for Tesla cars, as is the technology inside the car.

In short, Tesla is the world’s leading electric vehicle manufacturer with more than 18% market share.

They have miles to go before anyone can even catch up. Elon is a pure genius and knows exactly what to do. There are a ton of YouTube videos you can watch where bullish price targets can be as high as $15,000.

A few YouTubers and podcasts I personally recommend are Cathie Wood of ARK, Rob Maurer of the Tesla Daily channel/podcasts.

Top 5 Stocks I Hold

4. Amazon

Number 4 on the list is Jeff Bezos and Amazon.

Now, who doesn’t love Amazon or hates using it? It’s a fantastic online retail space.

Amazon needs no further introduction, everyone knows what they do.

A few quick points on why I’ll hold Amazon stock forever:

Amazon Store Revenue – not only does Amazon have a store in the US, but they are now all over the world – Canada, India, etc. The revenue potential is always in multiples of “X”.
Amazon Web Services (AWS) – AWS is the world’s leading cloud services company ahead of Microsoft. They have patented technology and it is very difficult for anyone to catch up with them.
Amazon Prime Membership, Video and Music – Amazon Prime video is a huge business in countries like India, where the OTT platform is just getting started with over a billion users.
Amazon-Whole Foods turnover

Needless to say, Amazon is here to stay and grow.

Jeff Bezos is the richest man in the world for good reason. He’s brilliant and powerful, building partnerships all over the world that can drive profits and moolah.

I will keep Amazon for the long term.

5.Facebook

Number 5 is Facebook.

Personally, I hate Facebook for what it does to the world.

But when it comes to stocks and investing, you can’t really miss Facebook.

The stock has exploded in recent years and the growth of this company is immense.

Here are some reasons why I like FB stock:

Mark Zuckerberg – Yes, I understand, he is on the news channels all the time and gets harassed by Congress, the EU and the rest of the world, for all the wrong reasons. But he comes back and makes the platform even stronger and the revenue seems to be increasing day by day. He is only 36 years old, has a brilliant mindset and is on a mission to make more money for himself and investors. He is the fourth richest man in the world behind Jeff Bezos, Bill Gates and Elon Musk.
Watch out for the Oculus launch this year. This is going to be huge for the AR world.
Facebook Product Roadmap – Instagram, WhatsApp and more to follow. All of these companies have over 1 billion active users worldwide. Facebook is still on a destructive trajectory, whether it’s Snapchat or TikTok. Either way, they win with a huge active user base.
99% of Facebook’s revenue comes from digital advertising, we’re talking billions here, but it’s here to stay. Facebook is a monopoly and no one will ever uninstall it. Small-cap companies rely on advertising spending to increase sales and volume.

FB will soon enter the trillion dollar market cap by partnering with the elite. It currently stands at $295 per share.

Other honorable mentions:

Alphabet (Google) – Google is the number 1 player in the advertising space with YouTube, which it owns. I’m a big fan of the company, but not its profits or its shares. The reason being:

Not very diversified.
Other than advertising revenue, where they have a monopoly and Facebook is second, they have nothing else to project. The YouTube Premium subscription is a failure because people can still access the platform with ads. Their Pixels and Chromebooks are a big NO from the general public! Finally, I don’t like Sundar Pichai compared to what Satya Nadella did for Microsoft to succeed Steve Ballmer. There is no clear vision of where Google is going outside of search or YouTube.

AMD – This is definitely on my watch list. AMD vs. NVIDIA is fun to watch. Great company, great fundamentals, great growth trajectory.

Nvidia – Again, this is on my watch list at the moment. Great growing company and amazing fundamentals. Attention !

NETFLIX – Personally, I like NETFLIX stock! NETFLIX is here to stay and grow, it’s a monopoly in the space again. Pay attention to the stock price.

How to invest in stocks?

Wealthsimple Trade – Wealthsimple Trade is a commission-free stock investing platform.
Questrade – The #1 trading platform in Canada!

Conclusion

Investing early and long term in reputable blue chip companies is always the key to creating wealth.

My investment strategy is simple –

I only invest on red days when I have money. These are not necessarily red days, as long as you invest in Blue chips it doesn’t really matter when you invest. You just have to hold it for the long term to see the true potential of the investment.
My stock choices are limited. I usually watch 5-10 stocks at any given time. No more than that. The less confusion, the more clarity.
I only invest in companies that I know 100%. (Investor Relations Page)
I don’t go into FOMO and sell stocks for short term gains
If I buy a share (I mean just one) of a company, I know I will hold it for at least 5 years. (This avoids FOMO in the first place)
Always look at the company’s financials/growth potential
Continue adding 1, 2, or 100 stocks consistently to dollar cost average.
Do not invest using margins/options, always go for the long term. It works, trust me!

Finally, if you are young, start with even just $100 and take small steps. It is important to act.

Thanks for reading! Let me know your thoughts and comments below.