Well-chosen stocks can help you safeguard and grow your wealth over the course of your entire life. That's because the best stocks can be bought and held for many years as they deliver fortunes to their investors along the way.
This type of elite investment performance is often produced by businesses that grow their sales and profits at impressive rates for long periods of time. To help you in your search for such companies, consider the following two enterprises. One is a growth stock that's expanding its revenue and earnings at a torrid clip, while the other is a proven wealth builder that's one of the safest investments you can make.
1. Celsius Holdings
If you're looking for an explosive growth stock, look no further than Celsius Holdings (CELH 2.12%). This energy drink maker's share price is up a staggering 4,384% over the past five years.
Quality ingredients, essential vitamins, and a proprietary sugar-free formula that the company says is clinically proven to help burn body fat combine to give Celsius an edge over its competitors. This combination is proving popular with consumers who are increasingly choosing healthier drinks that can help them achieve their fitness goals.
Celsius' sales, in turn, are skyrocketing. Its second-quarter revenue surged 112% year over year to $326 million, while earnings per share rose more than fourfold to $0.52.
This impressive pace of expansion caught the attention of industry giant PepsiCo. The food and drink titan took a $550 million stake in Celsius last year as part of a blockbuster distribution deal.
PepsiCo is using its relationships with retailers to help Celsius obtain more shelf space in stores. It's also enabling Celsius to cut costs from its marketing and distribution operations, which is bolstering the fast-growing company's profit margins.
Moreover, PepsiCo knows that Celsius has plenty of room for further growth. The hard-charging beverage brewer still accounts for a small share of a global sports drink market that's set to exceed $240 billion by 2027, according to a report on the Statista website.
2. Berkshire Hathaway
If you're looking for a low-risk stock that will allow you to sleep peacefully at night while owning it, Berkshire Hathaway (BRK.A -0.76%) (BRK.B -0.69%) might be more your cup of tea. Warren Buffett's investment conglomerate is built to survive and thrive during all manner of economic environments. And Buffett does some of his best work during the most challenging market conditions when the investments he likes to make become more attractively priced.
More than 60 operating subsidiaries contribute to Berkshire's roughly $25 billion in annual free cash flow. These competitively advantaged businesses operate across an array of industries, such as insurance, retail, energy, and transportation. This broad diversification makes Berkshire one of the safest investments available in the stock market today.
Better still, Buffett and his lieutenants strive to invest Berkshire's excess cash flow in undervalued assets. Berkshire owns shares in some of the best companies in the world, including Apple, Coca-Cola, and Visa. This investment portfolio, which is currently valued at a whopping $342 billion, has generated outstanding returns to Berkshire's shareowners for more than 50 years.
Importantly, Berkshire should continue to deliver solid gains to investors after Buffett -- who is 93 years old -- retires. Buffet's handpicked successors will fill the CEO position and key investment roles, ensuring that Berkshire's core business principles and investment philosophy will remain intact for many years to come.
