For many, the # 1 goal is to build a retirement wealth. Whether after 10 years or 40, this ultimate goal should always be borne in mind – this is a long game. There may be macroeconomic changes, the variability of tariffs and recession periods between them, but smart investors know that the best thing is to hold your head and buy high quality enterprises to hold on to the long path.
If you want a $ 1 million retirement, then you have to invest $ 200,000 equally in these three shares and sit patiently for a decade. By the end, they should cost $ 1 million or more.
First is one of the largest and best managed companies in the world: Alphabet(Nasdaq: goog)(Nasdaq: googl)S The technological giant owns Google, Google Cloud, YouTube and other start -ups that drive its valuation to a market cap of $ 1.8 trillion. In order to fulfill my estimate of this basket, which turns $ 200,000 to $ 1 million, Alphabet’s shares will have to lead up to five -time total return over the next 10 years. This is easy to do.
The company’s revenue increased by 15% compared to a year in 2024 in a permanent currency of up to $ 350 billion, led by growth throughout the board in its technology subsidiaries. Google Cloud is growing particularly rapidly due to artificial intelligence (AI), with a 30% growth in revenue in the past quarter. Profit margins are expanding, with the operative margin from 27% in 2023 to 32% in 2024. This margin expansion is a key reason why operating revenue increased so quickly for the alphabet.
On top of that, Alphabet returns a lot of capital to shareholders in the form of redemption and dividends. Currently, dividend gives it 0.5%, with shares decreasing by 10.8% in the last 10 years. Combine everything together, so Alphabet’s profit per share (EPS) has increased by 670% in the last 10 years. With the current value for money (P/e) from 19, which is well below the average for its 10-year-old, the alphabet stock looks cheap at these levels. If it can increase its EPS in a significant clip in the next 10 years, just as it has done in the last 10, I think the shares can increase by about 5 times over the next 10 years, including dividends.
Airbnb(Nasdaq: abnb) It revolutionized a modern trip with its short -term rental platform more than a decade ago. Today, as a publicly traded company and one of the largest initial public offers (IPO) in the last few years, it has been a global giant in travel. Last year, customers spent $ 81.8 billion on Airbnb. The revenue increased by 12% compared to a year to $ 11.1 billion, which gives it a long runway to grow as it tries to capture a larger piece of trillion dollars spent on the trip each year.
In order to be 5 times over the next decade, Airbnb will need to achieve a little lasting growth in revenue and profits. I believe it was created to do just that. The bigger part of the company’s reservations come from several markets like North America and Western Europe -more special France and the United Kingdom. It is now working to increase the supply of apartments in Germany, East Asia and Latin America, which are all major travel markets.
In order to add extra small fuel to the fire, Airbnb Management strives to expand Airbnb’s services beyond its main services. They can include neighboring services such as cleaning houses, flights or even tours and experience for local passengers. This should expand the general Airbnb address market and maintain revenue to increase with a double -digit percentage over the rest of the decade.
Profit should grow even faster with a lot of space to expand the profit margin. Airbnb’s operating margin has been 23% in the last 12 months, even when he is urging it to be aggressively advertising in international markets and working hard on these new product lines. Over the next 10 years, I expect Airbnb profit margins to expand as it reaches a growing scale. Add it on top with lasting revenue growth and it seems plausible that Airbnb’s shares will increase five times over the next 10 years.
GOOG ratio data from ycharts
The last stock in the list is Production of semiconductors in Taiwan(Nyse: tsm)S This is the basis of the semiconductor industry, which is the key contribution to the fast -growing AI sector. For example, when Alphabet needs more computing power for its data centers, it becomes Taiwan Semiconductor Manufacturing – TSMC for a short time – or a third party that works with TSMC to build its own computer chips.
This enviable position as one of the only companies that can produce avant -garde computer chips on a scale allowed TSMC to produce huge growth for its business. In 2024, the revenue from high -performance companies (HPC) of the company, which covered AI customers, increased by 51% compared to a year and is now the bigger part of the TSMC business. These big customers are a key reason why TSMC EPS is near 300% in the last 10 years.
Industry analysts expect AI costs to increase from $ 184 billion in 2024 to $ 826 billion in 2030. If this is materialized, many of this growth will go to TSMC. This should lead to even faster EPS growth for the company over the next 10 years, which is why I think the shares can 5 times during this period.
Combined, alphabet, Airbnb and TSMC are three fantastic long -term detainees for your portfolio and can turn $ 200,000 into $ 1 million in 10 years.
Before you buy a stock in Alphabet, think about this:
Ther Motley Fool stock adviser Analyst team has just identified what they think is 10 best shares For investors to buy now … And the alphabet was not one of them. The 10 shares that made the abbreviation could lead to the return on monsters in the coming years.
Consider whenNetflixMake this list on December 17, 2004 … If you have invested $ 1,000 at the time of our recommendation,You will have $ 461 558! ** Or when NvidiaMake this list on April 15, 2005 … If you have invested $ 1,000 at the time of our recommendation,You will have $ 578,035! **
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*Stock Advisor since April 5, 2025
Susan Frey, CEO of Alphabet, is a member of the Board of Directors of Motley Fool. Brett Sol has positions in the alphabet. Motley Fool has positions and recommends the production of Airbnb, Alphabet and Taiwan semiconductors. Motley Fool has a policy of disclosure.
Want $ 1 million retirement? Invest $ 200,000 in these 3 shares and wait that a decade was initially published by The Motley Fool
