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Motley Fool Highlights Two Stocks for Long-Term 'Forever' Investments

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  Published in Stocks and Investing on Friday, January 2nd 2026 at 12:35 GMT by The Motley Fool

Two Stocks The Motley Fool Believes Will Thrive Through 2026 (and Beyond) – A Deep Dive

The Motley Fool recently published an article identifying two stocks they believe are poised for significant long-term growth, with the potential to be "unstoppable" investments held indefinitely. While acknowledging that no investment is guaranteed, their analysis focuses on companies demonstrating robust fundamentals, strong competitive advantages, and exposure to large, growing markets. The featured stocks are Amazon (AMZN) and Taiwan Semiconductor Manufacturing Company (TSM). This article breaks down the rationale behind these selections, explores potential risks, and outlines why they’re considered candidates for “forever” holdings.

Amazon: More Than Just an E-Commerce Giant

The first stock highlighted is Amazon. While many recognize Amazon as a dominant force in e-commerce, the Fool emphasizes that its growth story extends far beyond online retail. They point to several key factors supporting their bullish outlook.

Firstly, Amazon Web Services (AWS) remains a critical engine for profitability. AWS, the world’s leading cloud computing platform, continues to experience robust demand as businesses of all sizes migrate operations and data storage online. The article notes that cloud adoption is still in its early stages globally, suggesting substantial future growth potential for AWS. As detailed in this AWS overview page, the service provides a wide range of compute, storage, database, analytics, machine learning, and IoT services – essentially underpinning much of the modern digital economy.

Secondly, Amazon’s advertising business is experiencing explosive growth. As e-commerce sales increase, so does the need for advertising to drive those sales. Amazon's platform offers a unique advantage: advertisers can target users based on their purchase history and browsing behavior, making it incredibly effective. This targeted advertising has become a significant revenue stream, contributing substantially to Amazon’s overall profitability.

Finally, Amazon is actively expanding into new areas like healthcare (One Medical acquisition), groceries (Whole Foods Market), and streaming entertainment (Prime Video). While these ventures may not all be immediate successes, they demonstrate Amazon's commitment to innovation and diversification, reducing reliance on any single market segment. The article acknowledges the challenges of profitability in some of these newer businesses but remains optimistic about their long-term contribution.

Why "Forever"? The Fool argues that Amazon’s vast ecosystem, relentless focus on innovation, and leadership positions across multiple high-growth markets make it a compelling candidate for a long-term investment. They believe the company's ability to adapt and capitalize on emerging trends will continue to drive shareholder value for years to come.

Taiwan Semiconductor Manufacturing Company (TSMC): The World’s Chipmaking Backbone

The second stock, Taiwan Semiconductor Manufacturing Company (TSM), operates in a fundamentally different sector – semiconductor manufacturing. However, the Fool argues its importance and growth prospects are equally compelling. TSMC is the world's largest contract manufacturer of advanced semiconductors, essentially producing chips for other companies like Apple, Nvidia, and AMD.

The article highlights several key factors driving TSM’s long-term success:

• Critical Infrastructure: Semiconductors are the backbone of modern technology – powering everything from smartphones to electric vehicles to artificial intelligence systems. Demand for these chips is only expected to increase exponentially.
• Technological Leadership: TSMC consistently leads the industry in developing and manufacturing cutting-edge chip technologies, often years ahead of its competitors. This technological advantage creates a significant barrier to entry for potential rivals. As detailed on their website, TSM's advanced nodes are crucial for enabling increasingly powerful and efficient devices.
• Limited Competition: The semiconductor manufacturing industry is highly concentrated, with only a few players capable of producing the most advanced chips. This limited competition allows TSMC to command premium pricing and maintain high profit margins.
• Geopolitical Significance: While this presents risk (discussed below), the increasing recognition of semiconductors as strategically vital has led governments worldwide to incentivize domestic chip manufacturing – often benefiting companies like TSMC through subsidies and partnerships.

Why "Forever"? The Fool believes that TSM’s essential role in the global technology supply chain, its technological leadership, and limited competition position it for sustained growth and profitability. They view TSM as a “picks-and-shovels” play – profiting from the broader boom in semiconductor demand regardless of which specific chip designs become dominant.

Risks to Consider

The article doesn’t shy away from acknowledging potential risks associated with both investments:

• Amazon: Increased regulatory scrutiny, rising competition in e-commerce and cloud computing, and macroeconomic headwinds could impact Amazon's growth trajectory. The profitability of its newer ventures remains a question mark.
• TSMC: Geopolitical tensions surrounding Taiwan are the most significant risk factor. A potential conflict with China would have devastating consequences for TSMC and the global semiconductor supply chain. Furthermore, increased competition from companies like Intel (investing heavily in domestic chip manufacturing) could erode TSM’s market share over time. The article acknowledges that while government incentives help, they aren't a guarantee of continued dominance.

Conclusion: Long-Term Perspective Required

The Fool’s selection of Amazon and TSMC represents an investment strategy focused on long-term growth and enduring competitive advantages. They emphasize that these are not quick-win stocks; rather, they are companies expected to deliver consistent returns over many years – potentially decades. While risks exist, the article concludes that the potential rewards outweigh those risks for patient, long-term investors who believe in the fundamental strength and future prospects of these two "unstoppable" businesses. The key takeaway is a call for a buy-and-hold strategy, weathering short-term volatility to benefit from the companies’ long-term growth trajectories.

Disclaimer: This article summarizes information from the provided source and should not be considered financial advice. Consult with a qualified financial advisor before making any investment decisions.