Long-term investment in solid growth stocks is an effective strategy for retiring with substantial wealth. It’s important to stay focused on your investments without being swayed by stock market fluctuations, noise, or daily headlines. Trust that companies hold the potential to generate lasting capital gains over the years, if not decades.
Picking the right stocks is pivotal for sustained investment success as they can significantly enhance your wealth over time. Concentrate on businesses that possess a strong competitive advantage and a history of increasing earnings and cash flow. Additionally, aim for companies with potential catalysts or those that can align with long-term market trends to facilitate continuous growth.
Here are three well-regarded stocks to consider for your long-term portfolio.
Honeywell
Honeywell International (HON -0.34%) supplies software across the automation, aviation, and energy sectors. The company has consistently shown revenue, net income, and gross margin growth, as detailed in the table below.
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Revenue (in billions) | $35.466 | $36.662 | $38.498 |
| Gross profit (in billions) | $13.119 | $13.667 | $14.662 |
| Gross margin | 37% | 37.3% | 38.1% |
| Net income (in billions) | $4.966 | $5.658 | $5.705 |
Data source: Honeywell. Fiscal years end Dec. 31.
Honeywell has generated an average of $4.6 billion in free cash flow over the past three years, and it has raised its dividend for 15 consecutive years, with the latest being $1.13 per share. The management team is concentrating on three strategic priorities to promote business growth: boosting organic growth by focusing on high-growth areas, enhancing margins through better digital operations, and pursuing strategic acquisitions while shedding non-core units.
Chipotle Mexican Grill
Chipotle Mexican Grill (CMG -1.00%) operates over 3,700 locations across North America, Europe, and the Middle East. The company has exhibited consistent growth in both revenue and profits, as outlined below.
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Revenue (in billions) | $8.635 | $9.872 | $11.314 |
| Operating income (in billions) | $1.16 | $1.558 | $1.916 |
| Net income (in millions) | $899 | $1,229 | $1,534 |
Data source: Chipotle Mexican Grill. Fiscal years end Dec. 31.
In 2024, Chipotle plans to open between 315 and 345 new company-owned restaurants, over 80% of which will feature Chipotlanes—drive-thru ordering systems accessible via the website or mobile app. Following the opening of its 1,000th Chipotlane last November, the company sees great potential in this format for enhancing sales and margins. Moreover, they forecast low- to mid-single-digit growth for comparable restaurant sales in 2025 and continue to innovate their menu.
Microsoft
Microsoft (MSFT 1.07%) offers a comprehensive suite of Office tools for tasks like word processing and spreadsheets. Recently, the company has maintained healthy growth in revenue and net income as shown below.
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Revenue (in billions) | $198.270 | $211.915 | $245.122 |
| Operating income (in billions) | $83.383 | $88.523 | $109.433 |
| Net income (in billions) | $72.738 | $72.361 | $88.136 |
Data source: Microsoft. Fiscal years end June 30.
In the first half of fiscal 2025, Microsoft reported a 14.1% increase in sales and a 10.4% rise in net income. Additionally, they generated $25.7 billion in free cash flow. The company plans to invest nearly $80 billion in data centers to manage the influx of artificial intelligence workloads, enhance its AI capabilities, and expand its innovations across various sectors, including healthcare. Collaborations with significant partners like Siemens and Accenture aim to deploy AI solutions that elevate business operations. With continued growth opportunities in AI, Microsoft appears poised for further success in the tech industry.
