Warren Buffett likes to say that you only need to be right about one or two stocks to succeed as an investor. This helps to explain why the Oracle of Omaha’s portfolio is concentrated in only a handful of stocks. Apple (NASDAQ:AAPL), Buffett’s biggest position, accounts for nearly half (46%) of his $354 billion investment portfolio. Finding winning growth stocks such as Apple and sticking with them over the long-term is a recipe for success.
While there are thousands of stocks to choose from, there are far fewer growth stocks that consistently outpace the broader market and reward shareholders with steady growth and returns. Identifying these stocks is not easy, but a worthwhile exercise for any buy-and-hold investor. Here are three millionaire-maker growth stocks to hold through thick and thin.
Shares of Alphabet (NASDAQ:GOOG / NASDAQ:GOOGL) have had a good run this year. Shares have grown nearly 50% since January. The strong performance has been driven by the company’s leadership position in artificial intelligence (AI) and a rebound in advertising spending at its core online search business. Expectations are high for continued growth in AI with the integration of the Bard chatbot into Alphabet’s Google search engine. This is meant to rival Microsoft’s (NASDAQ:MSFT) Bing search engine that now incorporates ChatGPT.
At the same time, Alphabet is starting to see a rebound in its online advertising revenue, with analysts forecasting an acceleration to double digit growth in this year’s second half. The company also continues to see big growth in its cloud computing unit, which has grown leaps and bounds in recent years. Add in Pixel smartphones, self-driving cars and digital assistants and there are lots of reasons to remain bullish on GOOGL stock. The stock is up 113% throughout the last five years.
In the past decade, the share price of energy drink maker Monster Beverage (NASDAQ:MNST) has increased nearly 500%, making it one of the best performing stocks in the Standards and Practices (S&P) 500 index. This year, the share price is up 14%, matching the performance of the broader market. However, it likely won’t be long before MNST stock is again outperforming and in aggressive growth mode. Following a few disappointing earnings prints, Monster has announced plans to launch alcoholic beverages and energy drinks targeted at women to help boost growth.
Energy drinks remain the fastest growing segment of the beverage market. Grand View Research forecasts that energy drinks will grow at an annualized 8.3% rate and reach worldwide sales of $177 billion by 2030. That compares with annual sales growth of 4.7% among soft drink companies such as Coca-Cola (NYSE:KO). Monster projects sales growth of 14% this year and 12% in 2024, as it expands into new categories that include zero-sugar products. MNST stock remains a long-term holding.
Shares of technology giant Microsoft have pulled back about 5% since the company announced its second-quarter financial results at the end of July. The company managed to beat Wall Street forecasts with its Q2 print, but weak forward guidance left analysts underwhelmed. However, the full impact of company’s AI products, notably ChatGPT, are not yet reflected in Microsoft’s earnings. The company’s $68 billion acquisition of video game maker Activision Blizzard (NASDAQ:ATVI) looks likely to be resolved soon.
The Activision Blizzard acquisition has cast a cloud of uncertainty over MSFT stock. However, the situation looks headed for a conclusion after Microsoft recently agreed to amend its takeover offer in order to appease British regulators who previously rejected the deal citing competition concerns. Additionally, Microsoft continues to work closely with privately-held concern OpenAI on new artificial intelligence applications and products to keep it ahead in the AI arms race. MSFT stock is up 35% year to date.
On the date of publication, Joel Baglole held long positions in AAPL, GOOGL and MSFT. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.