Long-term Investments: Focus on Technology Stocks

Long-term investing requires patience and a focus on future-oriented companies. Identifying the right stocks is crucial, but the real profit lies in the long-term development of the investment. This is where the strengths of the buy-and-hold strategy come into play. By staying with established companies for years, significant returns can be achieved. A company to consider is ServiceNow, a pioneer in IT service management. Since its IPO in 2012, its stock price has increased by over 3,770%, representing an average annual growth rate of 34.5%. The company's core, the cloud-based Now Platform, helps firms manage their workflows. Over 85% of Fortune 500 companies use this platform, and ServiceNow has over 8,100 customers in total. In the last quarter, the company recorded revenue of $2.8 billion, of which 96% came from subscriptions. This allowed them to increase their revenue by 22% compared to the previous year. Given these figures, ServiceNow is establishing itself as a dominant player in the IT sector. Another candidate for the long-term investor is Netflix. Two years ago, the streaming giant was struggling to maintain its market share, threatened by financially strong rivals like Apple and Amazon. However, through clever strategies, such as curbing password sharing and introducing an ad-supported subscription option, Netflix has successfully stood its ground. This is reflected in a stock increase of 279% in less than three years.