And it is noteworthy that companies with a strong brand, a solid reputation and a stellar track record allow to increase the wealth of investors over time. The key is to make sure you have the patience and fortitude to hold on to these winners through the market cycles. According to the American financial consultancy firm Motley Fool, the companies to be held potentially forever in the portfolio are in different sectors, but they have a common characteristic, namely “the ability to continue growing despite adversity”. Here’s what they are.
Lululemon Athletica is known for its “athleisure” clothing, a style that combines athletics with leisure. During the pandemic, the company demonstrated resilience, achieving revenue growth from $ 3.3 billion in 2019 to $ 4.4 billion in 2021; in the same period, net profit rose from 484 million to 589 million. In addition, in the first nine months of fiscal 2022, net revenues increased 54.5% year-on-year to 4.1 billion, while net income more than doubled to 540.8 million.
Motley Fool experts say “healthier lifestyles and more widespread smartworking have boosted demand for Lululemon products and that momentum is expected to continue in the future.” In July 2020, the company acquired Mirror, an interactive home gym that offers fitness classes and personal training, both live and on demand, offering the service in 40 of its Canadian stores. Calvin McDonald, CEO of Lululemon, intends to strengthen the brand’s bond with customers through greater engagement that would lead them to spend more on the company’s platform.
Coca-Cola needs no introduction, being one of the largest beverage companies in the world with products distributed and sold in around 200 countries. In addition to its signature brand, the company also offers a wide range of beverages – including sports drinks, coffees, teas and juices. Its revenues have remained resilient over the past three years, albeit falling slightly from 34.3 billion in 2018 to 33 billion in 2020, while net income managed to grow from 6.4 billion to 7.7 billion over the same period. Coca-Cola is also a recognized “dividend king”, having increased its annual dividend for 59 consecutive years to the current $ 1.68 per share. In the first nine months of 2021, the results demonstrated the company’s dominance in the food & beverage sector, with a 20% increase year-on-year to 29,
For Motley Fool experts, then, “Investors can expect Coca-Cola’s steady growth as it seeks to acquire more business. Its most recent purchase of the remaining 85% stake in BodyArmor for 5.6 billion shows the the company’s commitment to grow in the sports drinks category, “noting that” a combination of organic growth and opportunistic acquisitions like BodyArmor should continue to push Coca-Cola’s earnings and dividends upward. ”
Finally, with its wide range of products and services, Microsoft is far superior to many other competitors in the IT industry. It has a market capitalization of 2.5 trillion and in fiscal year 2021 – which ended June 30 – total revenues increased 17.5% year-on-year to 168.1 billion, while net profit jumped 38. 4% to 61.3 billion. The momentum continued into fiscal year 2022, with revenue up 22% yoy in the first quarter, while net income rose 48% to 20.5 billion, driven by growth in the gaming, professional networks divisions. and cloud services.
Microsoft, however, is not content with organic growth, it is also enhancing its m & a strategy. Recently, the European Commission approved the company’s purchase of Nuance Communications for 19.7 billion, which will extend its advantage in the healthcare and related industries. Just this week, the tech giant also announced the acquisition of Xandr from AT&T, a deal that, according to experts, “will help Microsoft enhance its digital advertising division by leveraging Xandr’s large-scale advertising platforms.” (All rights reserved)
