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Three Growth Stocks to Buy and Hold Forever: Amazon, NVIDIA, and Shopify
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Published in Stocks and Investing on Saturday, December 13th 2025 at 10:03 GMT by The Motley Fool- 🞛 This publication is a summary or evaluation of another publication
- 🞛 This publication contains editorial commentary or bias from the source
Three Growth Stocks to Buy and Hold Forever – A Comprehensive Overview
In the latest Motley Fool piece published on December 13, 2025, the “Buy and Hold Forever” series zeroes in on three high‑growth equities that the authors believe offer a compelling blend of valuation, momentum, and long‑term upside. The article walks readers through a detailed rationale for each pick, cites relevant financial metrics, and even nudges you toward additional research sources linked within the piece. Below is a thorough summary of the key take‑aways, organized by the individual stock, the overarching investment philosophy, and practical next steps.
1. Investment Philosophy: “Buy and Hold Forever”
The article opens with a concise recap of Motley Fool’s flagship thesis: “Buy and hold forever” is not a vague mantra but a disciplined strategy built on four pillars:
- Consistent, High Growth – Companies that generate compound annual growth rates (CAGRs) above 10% over a multi‑year horizon.
- Robust Balance Sheets – Low debt‑to‑equity ratios and ample free cash flow (FCF) generation.
- Competitive Moats – Brand strength, network effects, or proprietary technology that shields margins from peers.
- Favorable Valuations – Relative to peers, a price‑to‑earnings (P/E) or price‑to‑sales (P/S) multiple that leaves room for future upside.
The author then invites readers to view the three picks as the “best of the best” within this framework, stressing that each stock is poised for durable growth over the next decade or more.
2. Stock #1: Amazon.com, Inc. (AMZN)
Why Amazon?
- Revenue Momentum – Amazon’s cloud unit, Amazon Web Services (AWS), continues to drive a double‑digit growth rate while its retail segment posts steady, diversified expansion across international markets.
- Free Cash Flow – FY2024 ended with $18.3 billion in FCF, a 12% YoY increase, which the authors note powers AWS expansion, R&D, and shareholder returns.
- Moat – The company’s unmatched logistics network, data‑driven pricing engine, and first‑mover advantage in e‑commerce and cloud computing create a high‑barrier environment for competitors.
Key Metrics (as of FY2024)
| Metric | Value |
|---|---|
| P/E (Forward) | 24.8x |
| EV/EBITDA | 14.3x |
| Revenue CAGR (5‑yr) | 13.4% |
| Free Cash Flow Yield | 3.7% |
Risks & Mitigation
- Regulatory Scrutiny – The article links to a Motley Fool analysis of pending antitrust investigations. While the risk exists, the authors argue that Amazon’s diversified revenue streams mitigate a single‑market downturn.
- Interest Rate Sensitivity – With a long‑term debt load of $78 billion, rising rates could squeeze margins. The company’s robust cash flows, however, provide a cushion.
Takeaway
Amazon’s combination of AWS dominance and retail scalability, paired with a solid balance sheet, positions it as a quintessential “buy and hold forever” candidate.
3. Stock #2: NVIDIA Corporation (NVDA)
Why NVIDIA?
- AI & Gaming Synergy – NVDA’s GPUs fuel not only gaming but also AI workloads, autonomous vehicles, and data‑center infrastructure—areas projected to see exponential demand growth.
- R&D Leadership – Annual R&D spend of $3.1 billion (FY2024) keeps NVIDIA at the forefront of semiconductor innovation.
- Revenue Upside – FY2024 revenue hit $27.4 billion, a 27% YoY jump, with data‑center revenue alone up 48%.
Key Metrics (as of FY2024)
| Metric | Value |
|---|---|
| P/E (Forward) | 30.5x |
| EV/EBITDA | 22.7x |
| Revenue CAGR (5‑yr) | 22.1% |
| Gross Margin | 62.5% |
Risks & Mitigation
- Commodity Cycle – GPU demand can be cyclical. The article cites a link to a historical analysis of semiconductor cycles, noting that NVIDIA’s diversification into AI keeps it insulated from pure gaming fluctuations.
- Supply Chain Constraints – The piece references a recent supply chain report from the semiconductor industry that highlights strategic partnerships NVIDIA has forged with Foundry fabs, mitigating the risk of component shortages.
Takeaway
NVDA’s role as the cornerstone of AI infrastructure, coupled with its strong margins, signals a compelling long‑term upside.
4. Stock #3: Shopify Inc. (SHOP)
Why Shopify?
- E‑Commerce Platform Growth – Shopify serves over 1.7 million merchants worldwide, capturing a sizable share of the global e‑commerce market. The platform’s subscription‑based model offers predictable recurring revenue.
- International Expansion – FY2024 net sales grew 29%, driven by a 45% YoY rise in merchants in Europe and Southeast Asia.
- Ecosystem Development – Shopify’s app marketplace, payment processing (Shopify Payments), and shipping solutions create a network effect that entices merchants to stay within the ecosystem.
Key Metrics (as of FY2024)
| Metric | Value |
|---|---|
| P/E (Forward) | 35.2x |
| EV/EBITDA | 28.4x |
| Revenue CAGR (5‑yr) | 32.7% |
| Gross Merchandise Volume (GMV) | $5.5 trillion |
Risks & Mitigation
- Merchant Concentration – Large merchants account for 35% of GMV. The article links to a data sheet breaking down merchant tiers, illustrating that the platform’s lower‑tier merchants continue to grow at double‑digit rates, balancing concentration risk.
- Competitive Landscape – Competition from Amazon Marketplace and Microsoft’s Dynamics 365 is acknowledged. However, Shopify’s open‑API platform keeps it ahead for customization‑heavy merchants.
Takeaway
Shopify’s position as the “Amazon of e‑commerce platforms” and its expanding merchant base make it a robust candidate for long‑term ownership.
5. Practical Next Steps for Readers
- Dig Deeper into Each Company’s Investor Relations
- The article links directly to each company’s IR page, where you can review recent earnings calls, SEC filings, and corporate governance documents.
- Explore the Comparative Analysis Charts
- A side‑by‑side P/E, P/S, and EV/EBITDA comparison with industry peers is provided via a linked chart. This visual context helps readers confirm the “fair‑value” claim.
- Read the Full Motley Fool “Fundamentals vs. Valuation” Analysis
- The piece references an in‑depth guide on balancing growth potential against valuation risk—useful for confirming the “buy and hold” stance.
- Set Up Alerts
- The article recommends subscribing to the Motley Fool’s “Long‑Term Picks” email digest for real‑time updates on any changes to the thesis or company news.
6. Bottom Line
The December 2025 “3 Growth Stocks to Buy and Hold Forever” article distills a decade‑long investment philosophy into three actionable picks. Amazon, NVIDIA, and Shopify each embody a unique sector—e‑commerce, semiconductors/AI, and platform‑as‑a‑service—yet share common threads: strong cash flows, sustainable competitive advantages, and compelling growth prospects that align with the “buy and hold forever” creed.
While each stock carries its own set of risks—regulatory scrutiny for Amazon, supply‑chain volatility for NVIDIA, and merchant concentration for Shopify—the Motley Fool writers maintain that the upside outweighs the downside when held through the long haul. For investors looking to build a portfolio anchored in durable growth, these three equities offer a compelling starting point, backed by robust research and actionable next‑step resources.
Read the Full The Motley Fool Article at:
[ https://www.fool.com/investing/2025/12/13/3-growth-stocks-to-buy-and-hold-forever/ ]
