3 AMAZING Stocks to Buy and Hold Forever!!

Added: 2026-05-27

[00:00:00]Welcome back everyone. Uh today Jose and I are going to be breaking down three specific stocks that we believe have uh unbreakable modes, massive cash flows, and we think are uniquely positioned to win for long-term investors over the next decade. So you're not going to see any speculative penny stocks here. No high-risisk gamles. Uh just companies that we believe are long-term winners.

[00:00:23]Uh Jose, kick us off with stock number one.

[00:00:26]>> Yeah. So Rachel, stock number one for me is going to be Microsoft, ticker MSFT, for those that might not be familiar.

[00:00:33]Um, now before anyone says, "Oh, Microsoft, how unoriginal, Jose, hear me out. Hear me out." Because the market is, in my opinion, fundamentally mispricing how safe this company actually is right now. I mean, if we take a closer look at forward valuations, forward PE valuations for Microsoft, it's right now sitting in the low 20s. This is extremely low compared to its overall mean uh and overall median as well. And this is a company that right now is absolutely dominating um in the AI market and in my opinion has a mixture of growth and safety included in it. So you are paying for a premium business but you aren't paying a premium price. A and the reason the valuation is so attractive is because Microsoft has built a software solution that is completely completely embedded into the global economy. It's a massive ecosystem and frankly it's not a business model that I believe will be eaten up by AI. If anything, they are the ones that are going to be doing the eating. Think about how modern businesses run. You don't change your corporate infrastructure on the whim.

[00:01:39]The switching costs from for enterprise to leave Microsoft are practically impossible. Now, Jose, before you dive into the rest of Microsoft CI Strategy, uh just a word to those watching, if you guys are are watching this video right now and you want more of these deep dives into Forever Stocks, hit that subscribe button and drop a comment below. And uh let Jose and I know, are you buying Microsoft these levels? Are you waiting uh for a dip? Maybe get a debate going down there. Uh back to you, Jose.

[00:02:07]>> No, seriously. I mean, drop those comments below. I want to see where you guys stand. Uh because from where I'm sitting, waiting for a massive dip might mean missing out on one of the biggest tech transitions in history. Obviously, you guys know me. I'm a crazy AI AI lunatic here, but this is a market I'm extremely extremely excited about. Now, everyone is worried about who is going to win this AI race, but Microsoft is already a long-term winner in AI for both cloud and productivity products.

[00:02:35]Look at Asher. Companies aren't going to build their own massive AI models or AI infrastructure from scratch. They are going to rent the computing power and tools from Microsoft Asher. Uh and and then more importantly look at productivity. Microsoft 365 co-pilot is being woven into Excel, Word, Teams, and cyber security solutions. They aren't getting disrupted by AI because they spent years positioning themselves to be the landlord of the AI software. Now, it's one thing to build a cool standalone AI app. It's another thing to have a billion corporate users already using your ecosystem every single day.

[00:03:14]And for me, that is why it's a forever hold.

[00:03:18]>> Yeah, that enterprise lock in is is really tough to break. I want to press you on one thing just a little bit. You know, if Microsoft's biggest AI pitch is enterprise adoption, right, through co-pilot, what happens if, for example, corporate clients start pushing back on pricing? you know, they're charging a steep premium per user for these AI features. Do you think companies will keep paying that year-over-year? Do you think there's a risk that the ROI maybe isn't high enough to justify the cost long term? Uh, and that's the golden question there, Rachel. Right. It's it's all about the it's all about the ROI.

[00:03:49]And personally, as someone using AI, I think it's there. But here's how I look at it. It comes down to measuring the improvements of productivity. If co-pilot saves an engineer, a lawyer or an accountant just two hours of work a week, the software pretty much has already paid for itself entirely.

[00:04:05]Microsoft isn't selling luxury. They are selling efficiency. Early data shows that once an enterprise integrates these tools into their workflows, it becomes like electricity and you can't just turn it off without slowing down your entire company. That's why their pricing power is so incredibly resilient in my opinion. But speaking of AI skepticism, Rachel, your first pick is a company that people love to argue about when it comes to disruption. Who do you have?

[00:04:32]>> Yeah. Well, of course, I have to talk about Alphabet, right? This is ticker.

[00:04:36]Well, there's two tickers, G O G or G O G L, depending on the class of shares you purchase. So, Alphabet, this is a business I've been a longtime shareholder of, and I chose this specifically to follow your uh highlights of Microsoft because I do think that there has been this mainstream narrative that there's been fears that Alphabet is losing the AI race, that search uh could be eclipsed by chat GPT. Obviously, I think we've seen it bear out. That narrative is not happening. And I think it's actually creating a massive buying opportunity for long-term investors who can see the bigger picture. I mean, Alphabet has historically been one of the more favorably uh valued of the big tech companies, but I want to really talk about Alphabet's advantage in the world of AI. And for me, when I'm looking at this business as a long-term shareholder, it really comes down to data and distribution. So, they have nine different products with over a billion users each. Think about search, YouTube, Android, Maps, Chrome, Gmail, the list goes on, right? And when people say search is changing, yes, that's true. But I think that they forget that Google's already integrating their very advanced AI models like Gemini, which they recently just came out with some new updates for. Those are being integrated directly into their search results. It's being integrated across their ecosystem of software and hardware products. And Alphabet essentially has the largest data loop in human history to train these models. Um, on top of that, you know, we also have to talk about Google Cloud, right? I mean, everyone talks about Azure and and AWS, but Google Cloud is an absolute monster of a profit engine. Um, and this is also a part of the business that is seeing tremendous tailwinds because AI startups specifically need the specialized infrastructure of Google Cloud. And then, you know, don't overlook YouTube, right? I mean, those of us who are watching this video, you're watching us on YouTube right now. Uh, the network effects are totally unmatched. Uh, YouTube has no real direct competitor.

[00:06:31]advertisers really can't afford to leave Alphabet's ecosystem. So I think we have seen due to a range of issues, Alphabet has traded at a discount compared compared to its big tech peers. Those issues have been broadly perception rather than actual reality in terms of the business. Um but meanwhile they keep printing billions in free cash flow aggressively buying back their own stock. So, I really do think that this is a business that continues to control the flow of information on the planet and can continue to do so profitably in the AI era.

[00:07:02]>> Now, Rachel, I'm I'm a huge fan of Google. I'm not I'm not going to lie, and I completely agree that the death of Google search is wildly exaggerated, but what about the regulatory side of things? The Department of Justice has been breathing down Google's neck over their search monopoly and adtech dominance. If the government actually forces a breakup, how do you factor that risk into a hold forever mindset?

[00:07:26]>> Yeah, I mean, personally, I think the risk of a breakup is low. I think we've, you know, seen Alphabet uh obviously with its recent court wins, but that's of course something we've seen feed into the valuation. There is still that concern over a monopoly. Now, historically speaking, breaking up monopolies actually unlocks more sharehold shareholder value, not less.

[00:07:46]So, you know, for me as an Alphabet shareholder, I think you'd likely end up owning shares in multiple dominant companies instead of just one if a breakup were to occur, which I personally still think that's a very low risk of that happening. Uh, but the underlying cash generation of these businesses, the user habits, they don't just change because a corporate structure does. So, you're looking at this for 5, 10, 15 year investment horizon. Um, I still view uh this to be a really tremendous buying opportunity.

[00:08:14]>> Thank you, Rachel. That's definitely a great historical perspective of what happens when certain companies break up.

[00:08:19]Uh shareholders often win in those scenarios. All right, let's try to pivot into our third and final stock to round out this portfolio. I'll send it back to you, Rachel.

[00:08:29]>> Well, you know, Jose, we're staying with the Giants today. Uh stock number three is Amazon, another company that I'm a long-term shareholder of. That's ticker AMZN. Um, you know, I think a lot of people look at Amazon, they obviously know the e-commerce platform, but as an investor, there are so many different parts of this business that are constructed for the continued growth era in which Amazon is operating. So, you've obviously got AWS, the cloud business, Amazon Web Services. This is the undisputed king of cloud infrastructure.

[00:08:57]And just like Microsoft, as the world shifts to AI and massive data processing, almost every major enterprise has to pay rent to AWS to keep their systems online. And then there's the advertising business. This is a perhaps one that some investors pay a bit less attention to, but this is one of the fastest growing parts of Amazon's business. Um, you know, when people search for a product on Amazon, they are there to buy, not just browse, generally speaking. And that is high intent data.

[00:09:23]It's gold to brands and Amazon's ad margins remain incredibly high. You've also got Prime, right? I mean, there's subscription revenue that provides a massive predictable cushion of cash every year. They're currently automating their fulfillment centers with next generation robotics that should also really uh provide momentum to their retail profit margins. Um this is essentially a company that has become a utility for modern life. And I do think it's difficult to imagine a world 10 years from now where Amazon does not continue to be deeply embedded not just in how we buy things as consumers but also in how businesses run their technology. Now, Amazon is truly truly a beast here, Rachel, but we also have to play devil's advocate here. Um, and and for one, for Amazon, AWS has historically been their massive profit engine that pretty much subsidized the retail business now that Microsoft Azure and and Google Cloud are growing aggressively and all are investing massively in AI capex. Um, pretty much fighting tooth and nail for AI workloads and AI customers. Do you think AWS can maintain its dominant market share or will price words in the cloud space compress Amazon's overall margins?

[00:10:36]>> Yeah, I mean the competition is there and it continues to heat up. But the cloud market is not a zero- sum game and I think that's something that's really important to understand. And again, the total addressable market that these businesses operate in, it's expanding rapidly and a lot of that is because of AI. So I think we can see all of these players coexist and grow favorably at the same time. Um, in terms of AWS, I actually think they have a really um, notable first mover advantage. You know, you've got millions of legacy applications that are already entirely built on AWS infrastructure. So, just the switching costs are quite high. And I will also note um, and this is something that I really like about both Amazon as well as Alphabet, which I talked about earlier, Amazon's building their own custom AI chips, right?

[00:11:18]Trannium, Eiffia, and the idea is that they're going to offer cheaper computing power than their rivals. So all of these companies I think are formidable in their own way. Uh and I think they each have deep enough moes uh to stay concurrent market leaders and really provide value to shareholders over the long run.

[00:11:37]>> All right viewers, there you have it.

[00:11:38]Three stocks that we believe are great for long-term holds. These are three massive giants and massive giants with growth opportunities still intact. Now, if you got any value from today's episode, make sure to hit the thumbs up and the subscribe button and stay tuned for more videos. this upcoming week.

[00:11:55]Take care and see you all next time.