At its core, investing is all about the future. In typical approaches that try to put a value on a company's stock, prospective investors start by estimating the amount of money the company will generate for its owners over time.
That future cash generating ability -- discounted for the fact that a potential $1 in your pocket next year is worth less than $1 of certain cash in your pocket today -- forms the basis of that valuation estimate. With that in mind, these three stocks are ones that look likely able to generate money over the next ten years (and beyond) to help provide a great foundation for your financial future. If they perform as expected between now and then, they could help you to get richer by the time 2034 rolls around.
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No. 1: A semiconductor titan that's investing heavily in its future
Intel (INTC 5.51%) has seen its shares struggle over the past several years as it attempted to extract value from its existing microchip making facilities. Its underinvestment in next-generation capacity has allowed its more nimble competitors to leapfrog it in terms of technological superiority.
NASDAQ: INTC
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Yet it is clear that Intel recognizes the risks to its future from falling behind in an industry where product performance matters as much as it does in semiconductors. From artificial intelligence to smartphones, laptops, and embedded microchips in so many everyday products, smaller, faster, and more power efficient chips are clearly in demand.
After what one could argue was far too long a wait, Intel is aggressively investing in the capacity it needs to provide competitive next-generation computing power. With help from federal funding from the CHIPS act, Intel is investing more than $100 billion over the next several years to build out the precision manufacturing capacity needed to thrive.
Today's investments should translate to tomorrow's cash flows. With the first wave of that new capacity expected to come online later this year, investors may very well start seeing the anticipated returns on that investment in the not too distant future. That gives a great reason to believe it will still be able to thrive a decade from now.
No. 2: An energy infrastructure giant that's still investing for growth
Enbridge (ENB +0.39%) is a Calgary, Canada based oil and natural gas pipeline giant. While many are concerned about the future of that industry, Enbridge is actively investing in its future. It is acquiring "last mile" natural gas utilities, setting itself up to become the largest natural gas utility in North America.
NYSE: ENB
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That's a wonderful synergy with its long-haul pipeline business, and it showcases Enbridge's belief that natural gas will remain a vitally important fuel for decades to come. Fortunately, the company isn't alone in that assessment. The US Energy Information Administration (EIA) projects natural gas demand to remain stable or perhaps even grow a bit between now and 2050.
If those projections hold true, it is likely that natural gas demand will remain solid even after we pass 2050. After all, it's not like you can instantly replace all that energy at once, and natural gas has the advantage of working even when the weather isn't cooperating.
For shareholders, that means Enbridge will likely be able to continue its multi-decade long trend of increasing its dividend. When paired with a yield above 7%, Enbridge looks poised to continue to thrive in 2034 and beyond.
No. 3: A tech titan that's already leading the way in AI integration
Thanks in large part to its $10 billion investment in OpenAI (the business behind ChatGPT), Microsoft (MSFT 0.43%) has an incredible foothold in the rapidly growing Artificial Intelligence (AI) space. Microsoft is certainly making use of that position, with AI-powered add-ins to many of its well-known product suites.
NASDAQ: MSFT
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In addition to that, Microsoft's new Copilot acts as something of a coordination service, integrating multiple AI systems together in a single framework. In a world where AI still tends to be best at specialized, well-defined tasks, Copilot's integration hints at a way to streamline the interfaces for the humans who have to use those tools.
Even if today's AI hype turns out to be a bit of a bubble, much like what happened with the Internet in the late 1990s, it is likely that AI will eventually be integrated into our daily lives. As a well-capitalized early mover with access to not only leading edge AI technology but also key use cases for integrating it, Microsoft is likely positioned to thrive when AI becomes embedded in our lives. That makes it a compelling candidate for a portfolio focused on a decade or more from today.
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The market always tries to price in future potential. As a result, by the time today's future is already known, the market will be trying to figure out the next big thing. By making your investments based on what you think may come to pass ten or more years from now, you may be able to find opportunities to profit as that potential is realized.
Still, the thing to remember about the future is that it's always getting closer to today. As a result, make today the day you decide whether any of these three business' futures look strong enough to warrant an investment of your hard-earned cash. If they deliver on those long-term prospects, you may very well be glad you did.
