If I Could Only Buy and Hold a Single Stock, This Would Be It

Some stocks (and other investments) are special.

Without my initial investment in Netflix (NFLX), my portfolio wouldn’t be nearly as robust as it is now. Apple (AAPL) has turned countless individuals into millionaires throughout its history. Bitcoin maximalists argue that Bitcoin (BTC) should be the primary long-term asset for wealth preservation, and it seems that Nvidia (NVDA), with its dominance in artificial intelligence, will continue to generate substantial returns for early investors over an extended period.

Ponder over the idea of fully investing your investment portfolio in any of these assets. Each concept is intriguing and warrants careful evaluation. However, I wouldn’t advise placing all my retirement savings in any of these investments, not even Netflix.

Alphabet wins the “desert island stock challenge”

Among all stocks available today, if I were to choose only one to invest in and keep until the end of my lifetime, I would opt for Alphabet Inc., specifically either the Class A shares (GOO) or the Class C shares (GOOGL).

In simple terms, the competition doesn’t stand a chance against Alphabet Inc., Google’s parent company. This powerhouse offers an unbeatable mix of groundbreaking innovations, remarkable longevity, and a relatively affordable purchase cost at the moment.

From my perspective, among all the stocks, Alphabet is the one that meets every requirement. A handful of others come close, such as the investment ideas mentioned previously. However, Netflix and Apple might be excessively priced, I find Apple’s innovative energy unimpressive, and Bitcoin doesn’t operate with profit-making intentions in mind.

Simultaneously, Alphabet is a prominent player in the field of AI services, quantum computing, autonomous vehicles, and life-saving medical research. Interestingly, it has not yet been mentioned that its primary business is online search and advertising. In terms of market presence in these areas, no other company can compete with Alphabet.

Alphabet’s secret sauce: Built to survive anything

Many corporations hold significant influence across multiple sectors, and it’s worth noting that Alphabet isn’t the only one with this characteristic.

Yet, this business was designed to endure over extended periods, even amidst tumultuous market fluctuations. Today, YouTube videos and Android smartphones significantly contribute to Alphabet’s financial success; add to that the Google Cloud suite of cloud computing platforms. A financial composition as diverse as this one would have seemed implausible just a decade back.

It’s uncertain precisely how Alphabet will generate profits in 2035 or 2045, but it seems likely that they have a number of promising plans up their sleeve. Future generations might view Alphabet as their go-to service for ride-sharing, a top destination for creating and implementing AI applications, or perhaps even a company whose next big revenue stream I’m unaware of.

As a tech enthusiast, I can’t help but marvel at Alphabet’s ability to deliver unexpected blows and drive monumental shifts in the industry. For example, we wouldn’t recognize today’s smartphones or mobile computing without Android, a testament to their innovative prowess. In the realm of social media, YouTube was a pioneer, consistently pushing boundaries. When it comes to long-term business success, adaptability is the key, as the only constant in this ever-evolving market is change itself.

Loading widget...

Did I mention Alphabet is also a relative bargain?

Moving on to the third checkbox, which might be less significant, it’s worth noting that Alphabet’s shares are relatively inexpensive, even though the company boasts numerous attractive traits for investors.

Alphabet’s Class A shares (GOOGL) are being bought for approximately 21 times their recent earnings and 6.4 times their total sales. In comparison, Apple’s struggling empire is trading at 33 times its earnings and 7.9 times its sales, but even if Alphabet doubles in value, it would still appear reasonable compared to Netflix or Nvidia.

It appears that Wall Street’s market makers are content with the current state of affairs. While Alphabet’s stock has increased by 5% over the past year, Nvidia and Netflix have seen significant growth, rising by 45% and 90% respectively. Bitcoin has also shown impressive gains, increasing by 73%, but it remains challenging to determine its fair market value, given its novelty as a digital asset. So, is Bitcoin undervalued or overvalued at the moment? It’s up to you to decide.

In simpler terms, while getting shares at the minimum cost isn’t my primary goal, I wouldn’t object to a favorable purchase price.

In simpler terms, Alphabet consistently meets the requirements of a long-term investor who is committed. However, I wouldn’t put all my investments in Alphabet stock because no company, not even Alphabet, can avoid every potential business risk. Nevertheless, this stock is strongly considered to be an essential component of any portfolio. If I were forced to choose only one stock to buy today and hold forever, I would pick Alphabet.

Read More

2025-07-23 13:12