Cryptocurrencies are big business -- around the world. A survey earlier this year found that crypto was the second most popular asset in France (after real estate funds), while a different survey found that 46% of millennials from 26 countries owned crypto. Wow.
Not everyone is so enthused about crypto, though. Warren Buffett is against it, for instance. His business partner Charlie Munger has uttered many quotable things about it, such as "Crypto is an investment in nothing," and "A cryptocurrency is not a currency, not a commodity, and not a security. Instead, it's a gambling contract with a nearly 100% edge for the house..."
If you're really interested, learn more about cryptocurrencies and make up your own mind. But know this: You don't need crypto to get rich (and it might not make you rich). Instead, you can build considerable wealth in ordinary shares of stock -- which are tied to actual brick-and-mortar businesses.
Here are three candidates for your long-term stock portfolio.
1. NextEra Energy
Let's start with NextEra Energy (NEE -1.62%). It bills itself as "the world's largest utility company" and recently sported a market capitalization near $120 billion. It's the owner of Florida Power & Light Company -- the largest electric utility in the U.S. -- and it also encompasses NextEra Energy Resources, which, "together with its affiliated entities, is the world's largest generator of renewable energy from the wind and sun and a world leader in battery storage."
NYSE: NEE
Key Data Points
In the company's third quarter, its adjusted earnings per share (EPS) grew by 10.6% year over year, while it added about 3.2 gigawatts of new renewable power and storage to its already solid backlog of about 21 gigawatts. Over the past quarter, it placed more than 1 gigawatt into service as it grows its renewable business.
NextEra pays a dividend, with a recent dividend yield of 3.3%. It foresees continued dividend growth of around 10% in the near future and has hiked its payout by an annual average of 11% over the past five years. This company looks like a big long-term winner.
2. Medtronic
Medical device and treatment specialist Medtronic (MDT +1.14%) sports a market value near $100 billion and has a respectable dividend yield, recently 3.7%. (That payout has increased at an annual average rate of roughly 7% over the past five years.)
NYSE: MDT
Key Data Points
The company is a powerhouse in healthcare, employing more than 95,000 people. It spent $2.7 billion on research and development last year (an expense that often drives new revenue generators), and had more than 200 active clinical trials.
Medtronic's second-quarter results are imminent, but in its first quarter, reported in August, the company posted revenue growth of 4.5% (6% on an organic basis, which excludes foreign currency translations, among other things). The company's four main segments address diabetes, cardiovascular, neuroscience, and medical/surgical areas.
Medtronic is facing some challenges, such as supply chain issues and operations in China. But as long as we humans continue to have healthcare issues and as long as we keep aging and developing more issues, companies such as Medtronic should have a lot of growth ahead of them.
3. Roche
Roche Holding AG (RHHBY +1.49%) is another healthcare company worth a closer look. Based in Switzerland and with a market value topping $215 billion recently, it was founded back in the late 1800s and was "one of the first industrial manufacturers of branded medicines." Roche also pays a dividend, recently yielding 3.8%.
OTC: RHHBY
Key Data Points
In the first half of 2023, Roche posted some numbers in the red, due in part to a sharp decline in demand for tests related to COVID-19 and to adverse currency translations. Its pharmaceutical division saw 8% year-over-year growth, though. Roche recently spent $7.1 billion buying Telavant Holdings, to expand its work tackling inflammatory bowel disease.
Any or all of these companies -- or even a simple, low-fee index fund -- could make you rich if you buy and hold for many years, as long as they remain promising and continue executing well. There are plenty of others, too. No one needs to invest in cryptocurrency if they're looking to build wealth over the long run.
