There are many ways to get rich in the stock market, but one of the easiest and most profitable methods is to find companies with fantastic growth opportunities, solid competitive advantages over their peers, and great management teams. Buy them at reasonable prices, then do absolutely nothing for years and years.
Long-term winners give you get the benefits of compounding returns, and that growth is tax-free until you sell your shares. And the returns can be absolutely incredible. Time really is an investor's best friend. If you bought some NVIDIA (NASDAQ: NVDA) stock 15 years ago and held on to your shares, your position would have returned roughly 2,800%. A similar investment in Netflix (NASDAQ: NFLX) shares would have given you an 11,600% return over the same period. Other great businesses have delivered their big gains more recently. For example, electric-vehicle giant Tesla (NASDAQ: TSLA) rose more than 12,400% over the past 10 years.
You should always have a healthy respect for market risks, but you can also miss out on great investments if your portfolio keeps too much cash on the sidelines. The best idea is to have some of that dry powder ready in case another market correction sweeps in to create lots of fantastic buying opportunities, while also putting money into a few high-quality stocks that can provide great returns regardless of where the market as a whole is going. You won't always buy every stock at the best price, but picking great businesses with sustainable advantages in growing markets will get you some big wins. On that note, read on for a look at two companies that have what it takes to crush the market over the long term.
Read on to see how you can invest in Walt Disney (NYSE: DIS) and MongoDB (NASDAQ: MDB) today and expect market-crushing returns for decades to come, without lifting a finger.
Making money doesn't have to be hard work. Image source: Getty Images.
Disney means business