If I Were in My 20s, I'd Buy These 2 Trillion-Dollar Stocks and Hold Them Forever
Buying a slice of America's largest technology giants can help young investors build a secure financial future.
Overview
The S&P 500 (SNPINDEX: ^GSPC) is an index of 500 companies from 11 different sectors of the U.S. economy. It has produced a compound annual return of 10.7% since its establishment in 1957, even after accounting for every sell-off, correction, and bear market along the way. Therefore, buying an S&P 500 index fund is one of the surest ways investors can build wealth over the long term.
But young investors have time on their side, so they can afford to take on a little more risk in pursuit of higher returns. A portfolio of around 50 individual stocks will typically experience more volatility than the S&P 500, but that might be a worthwhile trade-off considering tech giants like Amazon (NASDAQ: AMZN) and Microsoft (NASDAQ: MSFT) have obliterated the index since going public:
Details
Thanks to emerging technologies like artificial intelligence (AI), Amazon and Microsoft likely have plenty of growth left in the tank. If I were a young investor in my 20s today, here's why I'd buy both stocks and hold them forever.
Source
Originally published at www.fool.com.