The joy of investing in stocks comes with the knowledge that you can put in a little money now and reap the dividends years later. There are a number of undervalued brands with the hidden potential to be worth a lot in the long run. When thinking of what stocks to put your money in, you should consider those companies who are adapting to the current market and cultural trends. In as much as some of these companies go through some turbulence once in a while, their ability to ride strong at the end of the day is what matters.
As an investor who intends to create a long term portfolio, you should invest in both risky stocks and those who pay little dividends now but are likely to develop in the coming years. The process is growing wealth is slow and steady, all you need is to have the patience and some willingness to keep up with the companies in your portfolio from time to time. If long term growth is what you wish to capitalise on, here are 3 stocks worth investing in now – in order to reap benefits from later on.
Current stock price: $195
The latest advancements in technology is making it possible for people to enjoy their favorite TV shows on streaming services like Netflix – instead of the “usual” cable TV. Netflix Inc. has grown in both in value and popularity in the last decade, with many stock market experts anticipating the company’s dominance of the exchange market in the nearest future. NFLX still has a lot of potential to grow exponentially as its market capitalisation is still just under a billion dollars. At its current growth rate, the company is likely to have a market cap of over $70 billion in the next two decades – if it gains at least 10% annually. That’s a reasonable growth rate for a brand that hasn’t expanded to other foreign stock exchange markets yet.
Netflix hasn’t made so much profit like other tech companies yet, due to the fact that they are still trying to come up with more unique content and purchase licences. However, streaming services are likely to take over from cable some day because people would want to watch “TV” from anywhere.
Current Stock price: $183
Gone are the days when Facebook was just a social media platform where users come to find and check up on loved ones. Facebook Inc. has metamorphosed into one of the largest tech brands in the past 5 years and doesn’t show any signs of slowing down. With Mark Zuckerberg and Co. developing new features and acquiring more businesses, the size of the company is going to be an advantage for its investors in future. The company hasn’t even monetized it’s two messaging services – Whatsapp and Facebook Messenger – yet. If businesses start placing ads on them, it will be a major money spinner for the brand. But just maybe, Zuckerberg has other plans.
On the NASDAQ and NYSE, the tech company has become one of the best performers of all time. As they intend to develop new platforms for businesses to receive payments through the app. If this happens, they will make a huge sum from processing fees on a daily basis.
Current stock price: $34
Travel has gone from just a way of having fun and getting away for a weekend to a major income earner for review sites like TripAdvisor Inc. The share price may have fallen by over 25% in the past few years due to the likes of Google search engine and Airbnb providing the similar fesults for consumers’ queries on travels. But if you’re wondering what makes TripAdvisor different from the others, they have data. However, the company boasts hundreds of millions of reviews from customers around the world who have visited more than 5 million hospitality brands. This simply means that they can enhance user experience, offering the over 400 million users who visit the website every month premium services tailored to meet their specific needs.
The company has already launched it InstantBooking service which allows users compare prices before making a booking. They believe it will boost revenue by about 10%. A Forbes report stated that over 60% of employees say they work to enable them afford trips and vacations. That’s a sign that the exponential growth of TRIP is just beginning.
Finally, there are many other companies that have growth potential – like Starbucks, General Motors, IBM and so on. What matters is being patient enough.