As an investing strategy, building up “time in the market” has a long history of beating “trying to time the market.” That said, it also makes a huge difference which companies you choose to put your time and money behind. For most successful investors, a handful of big winners wind up playing outsize roles in their portfolios’ performance.
To set you on the trail of those sorts of high-quality stocks, we asked a panel of Motley Fool contributors to explain some of their favorite long-term picks. Here’s why they think that Airbnb (NASDAQ: ABNB), Microsoft (NASDAQ: MSFT), and Amazon (NASDAQ: AMZN) stand out as foundational stocks for a future-proof portfolio.
This travel leader could book you market-crushing gains
Keith Noonan (Airbnb): When it comes to growth stocks capable of delivering fantastic returns for patient investors, I think Airbnb currently offers one of the best risk-reward dynamics on the market. The vacation rental specialist has deftly navigated what will hopefully wind up being the worst operating conditions of the pandemic era, and it appears to be on track to return to delivering excellent results as it shapes and benefits from some powerful long-term trends.
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Airbnb already offers industry-leading variety when it comes to locations and pricing options for short-term stays, and a growing number of hosts using the platform should lead to an even greater breadth of options. There’s a good chance that this trend will help to enhance guests’ engagement with the platform, which in turn should make Airbnb an even more attractive choice for hosts. It’s a textbook example of the network effect — and one that’s still in relatively early stages of unfolding.
If that’s not a firm enough foundation for a stellar long-term growth thesis, the company is also building a position in the local-events booking space. If you can book housing accommodations and also get a ticket for a tour or concert at a discounted rate, heck, why not?
Across the economy, businesses have also made big shifts toward remote-work and contract-labor employment arrangements, and these changes are making it easier for workers to travel and take advantage of newfound flexibility with their living situations. In that sense, the pandemic may have significantly accelerated a trend that could work to Airbnb’s long-term benefit.
Airbnb has a great business, a great brand, and …….