Brief Summary
Brian from BWB - Business With Brian shares his top 10 stock picks for a 25-year investment horizon, focusing on companies with durable advantages, strong balance sheets, and consistent cash flow. He also includes the top 10 stock picks from other YouTubers like Eli from Dividendology and Joseph Hogue. The list includes a mix of established tech giants, financial powerhouses, and some riskier future-tech bets, all chosen for their potential to compound wealth over the long term.
- Microsoft, Google, Amazon, Nvidia, Visa, Marcato Libre, ION Q, Costco, Crowd Strike, Palanteer are top 10 stock picks for a 25-year investment horizon.
- Eli from Dividendology focuses on companies with high returns on invested capital and stable gross profit ratios.
- Joseph Hogue's list is AI focused and leans heavily into growth.
Microsoft
Microsoft is Brian's number 10 pick, noting its impressive 10-year annualized return of 28.7%, significantly outperforming the S&P 500. This growth is attributed to its successful transition to cloud-based services and strategic investments in AI. Azure's consistent growth and the partnership with Open AI position Microsoft at the forefront of next-generation AI. With a substantial net cash reserve and a commitment to R&D, Microsoft maintains a strong financial position and a wide economic moat across various sectors, including enterprise software, gaming, and productivity.
Google is highlighted for its continued dominance in search advertising, generating substantial revenue annually, and the rapid growth of Google Cloud, driven by enterprise adoption of AI analytics. The company's significant investment in data centres and its "moonshot" projects like Waymo demonstrate its commitment to innovation. Despite regulatory risks, Google's strong financial reserves and potential for future growth, particularly with Gemini-powered search and YouTube monetisation, make it a solid long-term investment.
Amazon
Amazon is recognised for the strength of AWS, which accounts for a significant portion of Amazon's operating income, and the continued growth of its retail business through same-day delivery, private labels, and warehouse automation. Amazon's investment in AI through Bedrock and Agent Core positions it to capitalise on the agentic AI market. The company's consistent free cash flow supports its capital expenditures and buybacks, contributing to its long-term compounding power.
Nvidia
Nvidia is featured for its exceptional revenue growth driven by AI training workloads and data centre GPUs. The company's data centre segment has experienced remarkable growth, holding a dominant market share in data centre GPUs. Partnerships in autonomous vehicles and robotics expand Nvidia's addressable market. High gross margins and free cash flow yields support ongoing R&D, positioning Nvidia to continue capturing a significant portion of AI spending worldwide.
Visa
Visa is selected for its extensive transaction processing and the growth of global digital payments. The company's high operating margins indicate a high-quality financial business. Visa's consistent annual returns are driven by network effects and minimal credit risk. Reinvestment in real-time payments and buy now, pay later services unlocks new revenue streams, supported by a strong balance sheet and a history of dividend increases.
Marcato Libre
Marcato Libre is highlighted as Latin America's leading e-commerce and fintech ecosystem. The company benefits from the increasing adoption of digital commerce in Latin America. A strong track record of revenue growth and scaling profitability demonstrates its competitive moat and network effect. The fintech segment, similar to PayPal, experiences rapid growth with a large user base, offering services beyond core shopping.
ION Q
ION Q is Brian's future tech pick, focusing on quantum computing. Recent revenue reports and reaffirmed revenue guidance indicate growth potential. The company's trapped ion architecture and strategic partnerships strengthen its IP portfolio. With the quantum computing market projected to grow significantly, ION Q is positioned for long-term growth, targeting a break-even point by 2030.
Costco
Costco is chosen for its resilient business model and consistent performance. The membership model drives strong margins and cash flow. The Kirkland Signature private label brand boosts margins and customer loyalty. Opportunities exist in e-commerce and international expansion. A pristine balance sheet and self-funded growth contribute to its lasting power.
Crowd Strike
Crowd Strike is selected for its strong revenue growth and cloud-native Falcon security platform. The company's annual recurring revenue and subscription gross margins demonstrate its revenue visibility and profitability. The growing cyber security market and deep integrations with major cloud platforms position Crowd Strike as a critical defence layer for enterprises and governments.
Palanteer
Palanteer is featured for its significant revenue growth and profitability. Growth in US revenue and US commercial revenue indicates strong demand. The company's adjusted operating income and cash reserves demonstrate financial strength. Raised fiscal year guidance and high net dollar retention reflect customer satisfaction and expansion. Defence tailwinds and a long-term US Army agreement further support its growth potential.
Eli from Dividendology's Top 10 Stocks
Eli focuses on companies with sustainable competitive advantages, which he identifies through high returns on invested capital and stable or growing gross profit ratios. His top 10 stocks include Microsoft, Visa, Mastercard, ASML, Broadcom, Costco, Canadian National Railway, Waste Management, MLX, and JP Morgan Chase. He highlights Microsoft's diverse product portfolio, ASML's monopoly in EUV lithography machines, Canadian National Railway's irreplaceable infrastructure, and Waste Management's recurring revenue characteristics.
Joseph Hogue's Top 10 Stocks
Joseph Hogue's list is AI focused and leans heavily into growth. Brian highlights that he loves Dell, Marll, Super Micro, and Symbotic the most from his list.
