The stock market might be unreliable at times, and it doesn’t go up each year. But when looked at over the long term, there is arguably not a better source for wealth on the planet.
Since 1980, putting your money into an S&P 500 index would have given an annual total return, with dividends, of over 11%. In other words, you are doubling your money in under seven years, if you use dividend reinvestment.
If you are ready to set out on your path to wealth and independence, the next two unbeatable stocks could help you reach that goal.
There is a war against cash and a digital payments revolution happening before our eyes. When the game is over, fintech stock Square could end up being one of the top providers of digital payments.
Square is possibly best-known for its selling ecosystem. This is the sector that gives point-of-sale analytics, devices loans, and other methods to help businesses expand. In the seven years going into the covid pandemic, the gross payment volume (known as GPV for short) on its network went from $6.5 billion all the way to $106.2 billion.
While their seller ecosystem has long been focused on small merchants, GPV data reveals that larger businesses now make up a majority of all the GPV on the network. Larger merchants should mean higher gross profit and a much better future for Square.
Biotech stocks are everywhere. But a profitable pharma company with a good track record of creating drugs for hard-to-treat illnesses … that’s the best way to describe Vertex Pharmaceuticals.
Where Vertex has made itself unique is in treating cystic fibrosis — a genetic illness characterized by thick mucus that can block the pancreas and lungs. Despite there not being a cure for cystic fibrosis, Vertex has created multiple generations of gene-based therapies for the illness, each giving improved lung functions for the patients. The latest, a therapy called Trikafta, was FDA approved five months ahead of its scheduled time frame. At its peak, this drug could bring in $6 billion or higher in annual sales.
Creating a long line of treatments in the hard-to-treat sector has allowed Vertex to create quite a war chest. It recently reported $6.9 billion in cash and equivalents, which is a lot more than it needs to support its research into almost one dozen internally created compounds. This company certainly has a bright future.
Author: Steven Sinclaire