As a finance expert, I often get asked which stocks make sense for long-term investors. While the market offers countless choices, few companies have the staying power to thrive for decades. Today, I’ll analyze three Robinhood-listed stocks that I believe are worth buying and holding forever. These picks balance growth, stability, and competitive advantages that can compound wealth over time.
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Why Robinhood Stocks?
Robinhood’s platform has democratized investing, making it easier for retail investors to access the market. While some dismiss Robinhood stocks as speculative, many high-quality companies trade on the platform. The key is identifying businesses with durable moats, strong cash flows, and the ability to adapt over time.
My 3 Forever Stocks
1. Apple (AAPL) – The Tech Titan with Unmatched Brand Loyalty
Apple isn’t just a tech company—it’s a cultural phenomenon. With over 1.46 billion active devices worldwide, Apple’s ecosystem locks in customers and generates recurring revenue.
Why Apple is a Forever Stock
- Services Growth: Apple’s services segment (iCloud, Apple Music, App Store) now makes up nearly 25% of revenue, with gross margins around 70%.
- Pricing Power: Consumers willingly pay premium prices for iPhones, Macs, and wearables.
- Shareholder-Friendly: Apple has returned over $600 billion to shareholders via buybacks and dividends since 2012.
Valuation and Growth Prospects
Apple trades at a forward P/E of around 28, which is reasonable given its growth trajectory. If services continue expanding at 15% annually, Apple’s earnings could compound at 10-12% long-term.
Example Calculation:
If Apple grows EPS at 10% for the next decade, today’s $6.00 EPS becomes:
At a constant P/E of 28, the stock price would be:
Price = EPS \times P/E = 15.56 \times 28 = \$435.68That’s a potential 130% return, excluding dividends.
2. Amazon (AMZN) – The Everything Company
Amazon dominates e-commerce (38% market share) and cloud computing (AWS holds 33% share). Its two-pillar business model ensures resilience.
Why Amazon is a Forever Stock
- AWS Profit Engine: AWS delivers 60% of Amazon’s operating income despite being only 16% of revenue.
- Retail Scale: Amazon’s logistics network is unmatched, with same-day delivery in major cities.
- Innovation Pipeline: From AI (Bedrock) to healthcare (One Medical), Amazon keeps expanding.
Valuation and Cash Flow
Amazon’s free cash flow (FCF) rebounded to $32 billion in 2023. If FCF grows at 12% annually, Amazon could generate:
FCF_{10} = 32 \times (1 + 0.12)^{10} = \$99.4 \text{ billion}Applying a 30x FCF multiple (reasonable for a growth leader), Amazon’s market cap could reach:
99.4 \times 30 = \$2.98 \text{ trillion}That’s nearly triple its current valuation.
3. Berkshire Hathaway (BRK.B) – The Ultimate Buy-and-Hold Stock
Warren Buffett’s conglomerate is a forever stock by design. It owns durable businesses (Geico, BNSF, Dairy Queen) and a $350 billion stock portfolio (Apple, Bank of America, Coca-Cola).
Why Berkshire is a Forever Stock
- Diversified Earnings: Even if one sector struggles, others offset losses.
- No Dividends, Just Buybacks: Berkshire reinvests cash into high-return opportunities.
- Buffett’s Succession Plan: Greg Abel is a capable successor, ensuring continuity.
Intrinsic Value Estimate
Berkshire’s book value per share has grown at ~10% annually since 1965. If that continues:
BVPS_{10} = 362 \times (1 + 0.10)^{10} = \$939Historically, BRK.B trades at 1.4x book value, implying a future price of:
939 \times 1.4 = \$1,314That’s a 9% annualized return, excluding additional upside from stock picks.
Comparison Table: Key Metrics
| Stock | P/E (Forward) | Revenue Growth (YoY) | FCF Yield | Competitive Advantage |
|---|---|---|---|---|
| Apple (AAPL) | 28 | 5.5% | 3.8% | Ecosystem lock-in |
| Amazon (AMZN) | 42 | 11.8% | 2.1% | Scale + AWS dominance |
| Berkshire (BRK.B) | 22 | 6.3% (avg.) | N/A | Diversified holdings |
Risks to Consider
- Regulatory Pressure: Big Tech faces antitrust scrutiny.
- Economic Cycles: Amazon’s retail segment suffers in recessions.
- Interest Rates: Higher rates could pressure growth stock valuations.
Final Thoughts
These three stocks—Apple, Amazon, and Berkshire—have stood the test of time. They dominate industries, generate cash, and adapt to change. While no stock is risk-free, these are as close to “forever” holdings as you’ll find. Dollar-cost averaging into them over time could build lasting wealth.
