It's possible to become a millionaire by investing in stocks. But to do so, you'll need to earn strong returns for many years. And to do that, you'll want to invest in businesses with powerful competitive advantages and attractive long-term growth opportunities.
To aid your search for these fortune-builders, here are three exceptional companies to consider investing in today.
1. Berkshire Hathaway
Warren Buffett's Berkshire Hathaway (BRK.A 0.16%) (BRK.B 0.10%) is one of the best-performing stocks of all time. From 1964 to 2023, the venerable investment conglomerate generated astounding returns of 4,384,748% for its shareowners. And its stock price is up another 11% so far in 2024.
NYSE: BRK.B
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Berkshire is a financial fortress with dependable revenue streams and more than $160 billion in cash reserves as of the end of 2023. With more than 60 operating businesses in industries spanning from insurance to transportation to energy to retail, Buffett's $867 billion behemoth is perhaps the most diversified enterprise in the market today.
Berkshire's subsidiaries were chosen by Buffett for their strong competitive positions and attractive expansion prospects. Collectively, they produce annual operating earnings topping $37 billion.
Buffett likes to invest this cash in new value-creating opportunities, whether that be acquiring businesses outright or buying their shares in the stock market. Berkshire's portfolio holds large positions in top-tier companies like Apple, Coca-Cola, and Occidental Petroleum.
Notably, Berkshire has a well-crafted succession plan in place for when the legendary investor eventually retires. Buffett's trusted lieutenants, Todd Combs and Ted Weschler, will manage the company's investment portfolio after he steps down, and longtime Berkshire executive Greg Abel will succeed Buffet as CEO. With the next generation of its leadership team already in place, Berkshire is well-situated to reward its shareholders with wealth-building gains for many years.
2. CrowdStrike
As businesses shift more of their operations to the cloud, effective cybersecurity solutions are only becoming more vital. In this increasingly dangerous realm, CrowdStrike (CRWD +1.37%) stands between its customers and the cyber threats that would do them harm.
NASDAQ: CRWD
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CrowdStrike excels at safeguarding devices known as endpoints. Think laptops, tablets, and Internet of Things (IoT) appliances. The trend toward distributed workforces is making effective endpoint security indispensable for more companies -- and fueling demand for the cyber sentinel's industry-leading services.
CrowdStrike's artificial intelligence (AI) expertise gives it an edge over the competition. Its Falcon platform constantly grows smarter as it analyzes more than 2 trillion cyber events each day. When this AI-powered guardian detects a new threat, it immediately updates its network to defend its customers from harm.
CrowdStrike's business, in turn, is booming. Its revenue and free cash flow leaped 36% and 39%, respectively, to $3.1 billion and $938 million in its fiscal year ended Jan. 31.
Chief financial officer Burt Podbere sees a path to $10 billion in annual recurring revenue in the coming years. Yet CrowdStrike appears poised for even grander ambitions. The cybersecurity leader expects its total addressable market to grow to a staggering $225 billion by 2028.
3. Nvidia
The rapid adoption of AI across industries promises to be one of the most lucrative opportunities for investors. Nvidia's (NVDA +1.67%) cutting-edge technology powers the most advanced AI applications -- and demand for its industry-leading chips is soaring.
NASDAQ: NVDA
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Tech giants Microsoft, Alphabet, and Tesla depend on Nvidia's graphics processing units (GPUs) to power their cloud computing platforms and AI operations. Demand for the semiconductor titan's chips is so strong that it's struggling to satisfy it. Nvidia's sales surged 265% year over year to $22.1 billion in the quarter ended Jan. 28. Its operating income, in turn, skyrocketed by a stunning 983% to $13.6 billion.
Sales of AI chips are projected to remain robust for the foreseeable future. The cloud giants are expected to spend heavily to upgrade their data centers as they shift to accelerated computing systems that can run AI workloads more efficiently. All told, the market for AI chips could grow to a whopping $400 billion by 2027, up from roughly $45 billion in 2024, according to chipmaker Advanced Micro Devices.
Nvidia is the supplier of choice for these large chip buyers. Its new Blackwell processors should deliver substantial performance gains and cost savings compared to previous-generation chips. Critically, Blackwell's benefits include the potential to reduce the amount of energy consumed by AI applications by as much as 25 times.
Moreover, Nvidia is investing aggressively in software that can make it easier for its customers to train and run AI models. Just days ago, Nvidia struck a deal to acquire Run:ai, which provides tools that help companies optimize their computing infrastructure for AI workloads. Nvidia's efforts to bolster its software offerings should further strengthen its competitive position within the rapidly expanding AI industry.
