3 ‘Buy Now or Cry Later’ Stocks for Long-Term Wealth

Stocks to buy

Most investors are primarily concerned with building long-term wealth as opposed to capturing quick gains. Of course, those same investors would gladly reap short-term gains if they were reliable, but they aren’t. It remains incredibly difficult to identify stocks that will perform well over the short term. Yet, identifying stocks with the potential to create long-term wealth has proven easier.

Given time, companies with readily identifiable fundamental strengths tend to increase in value. These are the kinds of stocks you’re likely to find recommended by value investors such as Warren Buffett.

Investing in strong companies with durable competitive advantages is one of the best ways to build long-term wealth. These are the kind of companies that routinely maintain strong pricing advantages over the long term that create all kinds of beneficial internal economics. The companies discussed below certainly benefit from those factors and more, which is the reason to buy now.

Microsoft (MSFT)

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One of the best reasons to believe Microsoft (NASDAQ:MSFT) stock will continue to create long-term wealth for investors is its forecast growth. 

Microsoft reported just under $212 billion in sales in 2023. That figure is expected to approximately double by 2028. Given how successful the company has been in investing in artificial intelligence, it’s easy to see why Microsoft continues to be so loved.

It is one of the so-called hyperscaler companies looking to commoditize artificial intelligence. It is doing so by buying up massive quantities of AI chips and implementing them at its data centers.

As artificial intelligence becomes more and more a part of our lives Microsoft should become that much more valuable.

The strategy is highly logical and is part of a broader thinking that characterizes AI as the new digital gold. Outside of AI, Microsoft continues to be subsidized by the strength of its Office and Windows products. Microsoft has multiple ways to continue winning and creating long-term wealth. 

Amazon (AMZN)

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Amazon (NASDAQ:AMZN) is another strong choice for investors looking for stocks that will create long-term wealth. I believe many investors automatically discount Amazon and other similarly sized companies for the simple fact that they believe past growth is not replicable. 

After all, Amazon reported $574 billion in revenues in 2023. It’s therefore easy to presume growth will slow due to reaching such a massive scale. Yet, it’s possible that Amazon could reach $1 trillion in sales by 2028. It is predicted to come very close as it will grow by roughly 70% over that period. 

What I particularly like about Amazon is the company’s substantial investment in Anthropic, for which it recently completed its $4 billion investment. I believe Amazon will benefit substantially from that investment as Anthropic is noted to take a slower, more pragmatic approach to AI development than rival OpenAI. That developmental approach is likely to yield better results in the enterprise space, which requires greater accuracy and where substantial revenues will flow from.

Exxon Mobil (XOM)

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Exxon Mobil (NYSE:XOM) has long proven capable of creating long-term wealth. It is primarily an income-producing stock with much of its long-term wealth-creating ability coming from dividends. However, it also produces substantial share price gains as oil prices peak.

We now may be entering another such period as Brent crude surges past $86 per barrel. Analysts believe that it could peak above $90. Standard Chartered says the current supply deficit characterizing the third quarter will spill into the fourth quarter. That suggests Exxon Mobil will perform strongly throughout the remainder of 2024.

And while investors should be able to capitalize on those supply shortfalls, there are other reasons to like ExxonMobil. Most investors will compare it to Chevron (NYSE:CVX), the other common Big Oil choice. But with a choice between the two, Exxon is better at creating more value than Chevron. The peak oil argument was overdone and companies like ExxonMobil continue to have the ability to create long-term wealth for investors.

On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

On the date of publication, the responsible editor held a LONG position in XOM and CVX.

Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.

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