Finance
3 stocks that can help you get richer by 2034
At its core, investing is about the future. In typical approaches that place value on a company’s stock, potential investors start by estimating the amount of money the company will generate for its owners over time.
That future ability to generate money—leaving aside the fact that a potential $1 in your pocket next year is worth less than $1 of some cash you have in your pocket today—is the basis of that valuation estimate. With that in mind, these three stocks are likely to generate money over the next decade (and beyond), laying a good foundation for your financial future. If they perform as expected between now and then, they could help you get richer by the time 2034 rolls around.
No. 1: A semiconductor titan that is investing heavily in its future
Intel (NASDAQ: INTC) has seen its shares struggle in recent years as it tried to extract value from its existing microchip-making facilities. The underinvestment in next-generation capacity has done just that allowed its more agile competitors to leap forward in terms of technological superiority.
Still, it’s clear that Intel recognizes the risks to its future if it falls behind in an industry where product performance is as important as in semiconductors. From artificial intelligence to smartphones, laptops and embedded microchips in so many everyday products, there is clearly a demand for smaller, faster and more energy efficient chips.
After what you might say was far too long a wait, Intel is aggressively investing in the capacity it needs to deliver competitive next-generation computing power. With the help of federal funding from the CHIPS Act, Intel will invest more than $100 billion over the coming years to build out the precision manufacturing capabilities it needs to thrive.
Today’s investments must translate into tomorrow’s cash flows. With the first wave of that new capacity expected to come online later this year, investors may see the expected return on that investment in the not-too-distant future. That gives good reason to believe that the country will still be able to prosper in ten years.
No. 2: An energy infrastructure giant that is still investing in growth
Enbridge (NYSE: ENB) is a Calgary, Canada-based oil and natural gas pipeline giant. While many are concerned about the future of this sector, Enbridge is actively investing in its future. The company is acquiring last-mile natural gas companies in a bid to become the largest natural gas company in North America.
That’s a wonderful synergy with the long-haul pipeline business, and it reflects Enbridge’s belief that natural gas will remain a critical fuel for decades to come. Fortunately, the company is not alone in this assessment. The U.S. Energy Information Administration (EIA) expects demand for natural gas to remain stable or perhaps even grow slightly between now and 2050.
If these forecasts are correct, it’s likely that natural gas demand will remain solid even after we pass 2050. After all, you can’t replace all that energy at once, and natural gas has the advantage that it works even when the weather is bad. does not cooperate.
For shareholders, this means Enbridge will likely be able to continue its decades-long trend of raising its dividend. Combined with a yield of over 7%, Enbridge appears poised to continue to thrive into 2034 and beyond.
No. 3: A tech titan already at the forefront of AI integration
Thanks in large part to the $10 billion investment in OpenAI (the company behind ChatGPT), Microsoft (NASDAQ: MSFT) has an incredible foothold in the fast-growing Artificial Intelligence (AI) room. Microsoft is certainly capitalizing on that position, with AI-powered add-ons to many of its well-known product suites.
In addition, Microsoft’s new Copilot acts as a kind of coordination service, integrating multiple AI systems into one framework. In a world where AI is still the best at specialized, well-defined tasks, Copilot’s integration signals a way to streamline the interfaces for the people who need to use these tools.
Even if the current AI hype turns out to be a bit of a bubble, much like what happened with the Internet in the late 1990s, it is likely that AI will eventually be integrated into our daily lives. As a well-capitalized early mover with access to not only leading AI technology, but also key use cases for its integration, Microsoft is likely well-positioned to thrive as AI becomes embedded in our lives. That makes it an attractive candidate for a portfolio that focuses on ten years or more from today.
Start now
The market always tries to price in future potential. As a result, by the time today’s future is already known, the market will be trying to figure out the next big thing. By making your investments based on what you think will happen in ten or more years, you may be able to find opportunities to make a profit once that potential is realized.
Still, the thing to remember about the future is that it always comes closer to the present. So make today the day you decide whether the future of any of these three companies looks strong enough to warrant an investment of your hard-earned money. If they deliver on those long-term prospects, you might be very glad you did.
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Chuck Saletta has positions in Enbridge, Intel and Microsoft and has the following options: long December 2026 $30 calls on Intel, long January 2025 $37.50 calls on Enbridge, short December 2024 $25 puts on Intel, short December 2024 $35 calls on Intel, short December 2026 $30 puts on Intel, short January 2025 $30 puts on Enbridge, short January 2025 $37.50 puts on Enbridge, and short January 2025 $40 calls on Enbridge. The Motley Fool has and recommends positions in Enbridge and Microsoft. The Motley Fool recommends Intel and recommends the following options: long January 2025 $45 calls to Intel, long January 2026 $395 calls to Microsoft, short January 2026 $405 calls to Microsoft, and short May 2024 $47 calls to Intel. The Motley Fool has one disclosure policy.
3 stocks that can help you get richer by 2034 was originally published by The Motley Fool
