These companies have compelling long-term futures, but the coming decade could prove particularly exciting as each one comes into its own.
How long do you plan on sticking with a stock when you buy it? If you’re a believer in Warren Buffett’s proven approach, then your favorite holding period is forever.
And it’s certainly the smarter way of thinking about filling out your portfolio. This mindset forces you to find quality companies, as opposed to tackling the tricky business of predicting a particular stock’s performance for the foreseeable future.
This long-term way of thinking often leads to better returns.
Every now and again though, a story stock comes along that’s undeniably entering a period of incredible growth. These often materialize after a huge scientific, technological, or medical breakthrough.
Here’s a closer look at three stocks you might want to make a point of holding for the next 10 years. Although each could thrive for far longer, the coming decade could prove particularly rewarding. Here’s why.
1. Roblox
Roblox (RBLX) is an online video gaming platform, allowing a huge number of players to simultaneously participate in the same game.
That’s not what makes it unique, though. Roblox’s standout feature — and business model — is allowing gamers themselves to build their own virtual game room, and then monetize it. In 2024, the company dished out nearly $923 million in payments to its game-room designers who collectively entertained an average of 82.9 million players per day with 73.5 billion game-play hours for the entire year. Each of those numbers was up more than 20% year over year, extending a well established growth trend. It will also likely last several more, given its past success.
See, while most multiplayer online gaming platforms like Fortnite, several of the Call of Duty series, and Apex Legends have each experienced tremendous player growth, that was eventually followed by a stark decline in participation.
In other words, Roblox has withstood the test of time.
Credit the model itself, mostly. Its games’ graphics may be poor, and the game-play itself may be relatively simplistic. However, something about the idea clearly works. It’s probably the fact that game-room designers have an incentive to keep their games fresh and interesting.
The kicker: It’s not been nearly the hot button it was just a few years back. But Roblox’s virtual reality metaverse is still around in a handful of formats. It’s just changing, moving away from the sprawling social platform it was initially expected to be to more of a marketing-driven one.
Nike’s metaverse allows users to interact with one another via simple games that feature its products, for instance, while AutoCAD software company Autodesk is using virtual reality to give designers are more immersive experience in their design work. Roblox’s technological know-how is being utilized for many such applications.
An forecast from Straits Research suggests the worldwide metaverse industry is set to grow at a compound yearly growth rate topping 40% through 2032, by the way.
2. Joby Aviation
There was a time not too long ago when the premise of a flying taxi was laughable. Now it’s a reality. Joby Aviation (JOBY) is one of the few companies making it happen.
Credit the advent of the light lithium-based batteries and powerful electric motors that made electric vehicles possible. As it turns out, this same tech can be used to power what’s essentially an ultra-quiet hybrid aircraft that can fly like an airplane but can take off and land like a helicopter. A commute that takes more than an hour by car can now be completed in a matter of minutes.
And it’s no mere premise. It is happening. Joby’s full-scale prototype aircraft capable of carrying four passengers has already flown more than a total of 30,000 miles, and the process of getting the aircraft FAA-certified is more than halfway complete. Meanwhile, the company’s already establishing commercial service partnerships in Dubai, as well as partnerships with Virgin Atlantic and Japanese carmaker Toyota Motor, which as of October of last year is also a major Joby shareholder.
In the meantime, just last month President Donald Trump signed an executive order establishing government support of the nation’s nascent electric vertical takeoff and landing (eVTOL) and air-taxi industry that Joby is a key part of.
It’s not clear when the company will become commercially viable. There’s little doubt that the world is evolving in a way that favors Joby Aviation though, with many of those changes like to be complete well within the next 10 years.
Global Market Insights believes the worldwide air taxi market is poised to grow at an average yearly pace of more than 20% through 2033, with North America ending up the industry’s single-biggest market.
3. CRISPR Therapeutics
Finally, add CRISPR Therapeutics (CRSP) to your list of monster stocks to hold for the next 10 years.
CRISPR is an acronym for “clustered regularly interspaced short palindromic repeats.” It’s a reference to the way a chain of human DNA is sequenced from end to end — a sequence that, as CRISPR Therapeutics’ website explains, allows for gene editing by “precisely cutting DNA and then harnessing natural DNA repair processes to modify the gene in the desired manner.”
It’s no mere theoretical science either. CRISPR Therapeutics’ Casgevy — for the treatment of sickle cell disease and transfusion-dependent beta thalassemia — become the first-ever FDA-approved gene-editing therapy in late 2023, blazing a trail for others.
The thing is, many of those other genetic-repair treatments are also going to be CRISPR’s. They’re also going to be heavy hitters. Of the biopharma company’s six other clinical trials currently underway putting the same science to the test, two are taking aim at cancer, and two more are intended to treat heart disease. Then there are several more pre-clinical studies underway aiming at diabetes, muscular dystrophy, and more. At least some of these clinical trials should be bearing fiscal fruit within the coming decade, as Casgevy itself gains traction.
That’s what analysts are anticipating anyway. While the $5 billion company’s top line should only roll in at roughly $50 million this year, the analyst community is looking for sales of nearly $200 million next year en route toward $400 million in 2027, driven by expanding uptake of its therapies.
That’s still likely to just be the beginning, however. Now that the science is proven to work, Precedence Research predicts the global gene-editing drug business is set to grow at an average annualized pace of 13% though 2034. This could be enough sustained forward progress to pull CRISPR Therapeutics out of the red and into the black between now and then, which of course would be a bullish catalyst in and of itself.
— James Brumley
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Source: The Motley Fool
