It can be dangerous to think that a company can never be defeated. There are too many businesses that were once powerful and have disappeared or are a shadow of what they were before to completely rule out the possibility of being interrupted.
However, there are a handful of companies that have such strong business models that they are likely to stay on top of their markets for a long time. This is the type of companies you want to invest in. If you have $ 5,000, here are three virtually invincible stocks you can buy right now to make big bucks in the long run.
It would be extremely difficult for a rival to dethrone Amazon.com (NASDAQ: AMZN) in e-commerce The company has a well-known brand. It has a massive distribution infrastructure. Amazon claims about 40% of the online sales market, according to market researcher eMarketer. Company number 2, Walmart, it has an e-commerce market share of only 5%.
Amazon has tougher competition for its Amazon Web Services (AWS) cloud hosting business. But he remains the undisputed leader. As organizations migrate applications and data to the cloud, it seems highly likely that AWS will continue to deliver impressive growth even if it loses market share along the way.
Power anything stop Amazon? Perhaps the biggest threat is that government regulators could strangle the company’s expansion plans. It’s also possible (but I think pretty unlikely) that Amazon will break. However, even if that happens, my hunch is that the sum of the parts would potentially be worth more than the whole.
Barring a major government hurdle, Amazon appears ready to continue offering solid growth despite its large size. The company has its eyes on the lucrative healthcare market and is acquiring Zoox to enter the field of autonomous car technology. Amazon is not completely invincible, but it is not far from that.
2. Intuitive surgical
Speaking of the healthcare sector, one company has absolutely dominated the market for robotic surgery systems for two decades: Intuitive surgical (NASDAQ: ISRG). More than 5,500 of Intuitive’s da Vinci systems are installed worldwide. So far, more than 7.2 million surgical procedures have been performed using these systems, with 1.2 million procedures in 2019 alone.
Intuitive Surgical’s success has attracted new rivals. Two giants of health, Medtronic and Johnson and JohnsonThey have robotic surgical systems that are either directly competing against Intuitive products or will be soon.
However, I’m not too concerned that Intuitive loses its grip on the top spot on the market. Intuitive’s existing customers are highly motivated to get the most out of their investment rather than switching to a rival system. Newcomers will also be at a disadvantage in facing Intuitive’s long history of security.
Most importantly though, I think the market will expand enough to support multiple players with the number 1. Intuitive Surgical Remaining. Key growth factors include demographic trends and technological innovations that increase the types of procedures that can be performed with robotic assistance.
Some believe that the COVID-19 pandemic could cause an acceleration of the continuous change from cash to digital forms of payment with the concern of consumers that the use of physical currency could increase their chances of being infected by viruses. Although some studies have shown that these fears are exaggerated, perception is sometimes more important than reality. I think Square (NYSE: SQ) However, it is well positioned to be a big winner in the growth of digital payments.
Square has firmly established itself as the leader in providing technology and payment services to small and medium-sized businesses. You probably see the company’s small credit card devices frequently if you shop at these smaller retailers. What you don’t see, however, is the impressive ecosystem Square has built to serve these companies, from payroll apps to business debit cards.
I hope Square will leverage its relationships with small and medium-sized businesses to gain more traction and help them in new ways, including creating e-commerce sites. I also hope that the company will make more inroads with larger clients.
Square’s Cash app digital peer-to-peer payment is competing well against PayPal‘s Venmo. The company believes it has an opportunity of at least $ 60 billion annually in the US alone with Cash App. With its strength in both corporate and individual financial ecosystems, it is not unreasonable to view Square as the “Amazon of the financial services”. I think Square’s growth in fintech and leadership position make it another almost unstoppable move to buy for long-term investors.