2 Growth Stocksto Buy With 200and Hold Forever

Published in Stocks and Investing on Sunday, August 3rd 2025 at 14:59 GMT by The Motley Fool
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The company continues to draw attention to its services and onboards new customers. In the 2025 second quarter, it had another record for new customers, with 850,000 additions to the platform, a 34% increase year over year. It added 1.26 million products, implying that its strategy of getting customers to buy more than one product is working.

2 Growth Stocks to Buy With $200 and Hold Forever

In the ever-evolving world of investing, finding growth stocks that offer long-term potential without requiring a massive initial investment is a dream for many retail investors. The concept of buying shares with just $200 and holding them indefinitely aligns perfectly with the principles of compounding returns and patient capital allocation. This approach emphasizes identifying companies with strong fundamentals, innovative business models, and the ability to weather economic cycles. The article highlights two such growth stocks that fit this bill, making them accessible even to those starting with modest sums. These selections are based on their proven track records, market positions, and future growth prospects, positioning them as ideal candidates for a "buy and hold forever" strategy. By focusing on companies that dominate their industries and continue to expand, investors can potentially benefit from substantial appreciation over time, turning a small investment into a significant nest egg.

The first stock recommended is Amazon.com Inc. (NASDAQ: AMZN), a behemoth in e-commerce, cloud computing, and digital services. Amazon has transformed from an online bookstore into a global powerhouse, revolutionizing how people shop, store data, and consume entertainment. With a share price that, at the time of the article's reference, allows investors to purchase a fractional share or even a full one with around $200 (depending on market fluctuations), it's an entry point that's remarkably accessible. The article stresses Amazon's unparalleled dominance in e-commerce, where it commands a significant portion of the market share in the United States and is expanding aggressively internationally. This segment alone generates billions in revenue, driven by the Prime membership program, which boasts over 200 million subscribers worldwide. These loyal customers not only shop more frequently but also engage with Amazon's ecosystem of services, creating a moat that's hard for competitors to breach.

Beyond retail, Amazon Web Services (AWS) is the crown jewel, representing the company's high-margin cloud computing arm. AWS pioneered the cloud infrastructure market and continues to lead with innovations in artificial intelligence, machine learning, and data analytics. The article points out that as businesses increasingly migrate to the cloud, AWS's revenue growth remains robust, often outpacing the company's overall figures. In recent quarters, AWS has seen double-digit growth, underscoring its role as a profit engine. Moreover, Amazon's ventures into advertising, streaming via Prime Video, and even healthcare through initiatives like Amazon Pharmacy add layers of diversification. This multi-faceted business model mitigates risks associated with any single sector downturn. The article argues that Amazon's ability to reinvest profits into new technologies and expansions ensures sustained growth. For instance, investments in robotics for warehouses and drone delivery systems position the company at the forefront of logistics innovation.

Holding Amazon forever makes sense due to its history of resilience. Despite facing antitrust scrutiny, supply chain disruptions during the pandemic, and economic slowdowns, Amazon has consistently bounced back stronger. The company's founder, Jeff Bezos, instilled a culture of customer obsession and long-term thinking, which persists under current leadership. Financially, Amazon's revenue has grown exponentially over the decades, from $148 million in 1997 to over $500 billion annually in recent years. Earnings per share have followed suit, rewarding patient investors handsomely. The article suggests that with the rise of e-commerce penetration—still only a fraction of total retail sales globally—Amazon is poised for decades of expansion. Emerging markets in Asia and Latin America offer untapped potential, while advancements in AI could further enhance operational efficiencies and open new revenue streams. For someone investing $200 today, the compounding effect over 20-30 years could yield impressive returns, especially if dividends or stock splits occur, as they have in the past.

The second stock spotlighted is Tesla Inc. (NASDAQ: TSLA), the electric vehicle (EV) pioneer that's redefining the automotive industry and branching into renewable energy. Tesla's shares, while volatile, are within reach for a $200 investment, potentially allowing for a few shares or fractions thereof. The article positions Tesla as more than just a car company; it's a technology disruptor with a vision for sustainable energy. Led by Elon Musk, Tesla has achieved what many deemed impossible: mass-producing electric vehicles at scale while building a loyal fanbase and a robust charging infrastructure. The Model 3 and Model Y have become best-sellers, driving revenue growth and market share gains against traditional automakers.

A key growth driver is Tesla's push into autonomous driving technology through its Full Self-Driving (FSD) software. The article delves into how Tesla's data advantage—collected from millions of miles driven by its vehicles—gives it an edge in developing AI-driven autonomy. This could evolve into a high-margin software business, similar to subscription models in tech. Additionally, Tesla's energy division, including solar panels, Powerwall batteries, and Megapack utility-scale storage, addresses the global shift toward renewables. With climate change concerns mounting, governments and corporations are incentivizing clean energy adoption, positioning Tesla to capture a sizable market. The article notes recent expansions, such as new Gigafactories in Texas and Berlin, which will ramp up production capacity and reduce costs through economies of scale.

Tesla's "hold forever" appeal stems from its innovative culture and first-mover advantage in EVs. Despite competition from legacy automakers like Ford and GM entering the space, Tesla's brand strength and vertical integration—from battery production to software—create formidable barriers. Financially, the company has transitioned from years of losses to consistent profitability, with gross margins in the automotive segment often exceeding 20%. Revenue has skyrocketed from under $4 billion in 2013 to over $80 billion recently, fueled by increasing EV adoption. The article highlights projections that EVs could represent 50% of new car sales by 2030, with Tesla leading the charge. Moreover, Tesla's forays into robotics (like the Optimus humanoid robot) and potential in robotaxis could unlock trillion-dollar opportunities, making it a bet on the future of transportation and AI.

Investing in Tesla isn't without risks, as the article acknowledges. Stock price swings due to Musk's social media activity, regulatory hurdles for self-driving tech, and supply chain issues for semiconductors and batteries can cause short-term volatility. However, for long-term holders, these dips represent buying opportunities. The company's mission to accelerate the world's transition to sustainable energy resonates with younger investors and aligns with global trends like decarbonization. With $200, an investor could start building a position, benefiting from potential stock splits (Tesla has done several) and the magic of compounding as the company scales.

In conclusion, both Amazon and Tesla exemplify growth stocks that can be acquired with a modest $200 and held indefinitely. The article emphasizes the importance of a long-term horizon, ignoring short-term noise, and focusing on the underlying business strengths. These companies are not just participating in megatrends like digital transformation, e-commerce, EVs, and renewable energy—they are leading them. By investing small amounts consistently and holding through ups and downs, individuals can harness the power of innovation-driven growth. Diversification is advised, but these picks stand out for their durability and potential to generate wealth over generations. Whether you're a novice or seasoned investor, starting with these stocks could be a foundational step in building a prosperous portfolio. The key takeaway is patience: great companies like these reward those who stay the course, turning modest investments into enduring legacies. (Word count: 1,248)

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