We Fools agree with Warren Buffett that the ideal holding period is "forever." However, finding a truly great business that can stand up to the test of time is no small tall task. Which companies do we think can be owned with a multi-decade time horizon? We asked three Motley Fool investors to weigh in, and they picked Facebook (NASDAQ: FB), Square (NYSE: SQ), and Moody's (NYSE: MCO).
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The biggest social network in the world
Leo Sun (Facebook): I believe that Facebook, the world's largest social network, will still be a dominant tech company in 50 years. Facebook serves 2.07 billion monthly active users (MAUs) on its namesake site, 1.2 billion MAUs on its Messenger app, 1.3 billion MAUs on WhatsApp, and another 800 million MAUs on Instagram -- making it the undisputed king of social networking.
Facebook also became an early mover in the virtual-reality (VR) market after acquiring Oculus in 2014. It launched the commercial version of the Oculus Rift headset last year and introduced "Spaces," which turns social networking into a VR experience, offering immersive experiences and VR-based social games.
Facebook's ecosystem is still expanding, with local business pages (65 million at the start of 2017), Workplace (its Slack rival that serves over 30,000 businesses), and new live and 360-degree video features. It's also providing free internet access to unconnected areas via solar-powered drones and partnerships with local telcos -- which could tether billions of new users to Facebook's platform.
Facebook's revenue and earnings are still growing at double-digit rates, with most of that money generated by ad sales. But that should change over the next few decades as its social platforms expand into adjacent markets and the company launches new products and services for its captive audience. As long as mobile technology improves and people keep sharing photos, videos, and experiences, Facebook should remain a top long-term stock to own.
Money is now digital
Travis Hoium (Square): The financial industry is becoming more digital by the day, with credit card use growing and other digital-payment solutions beginning to replace cash transactions. One company creating the services to build that digital payment future is Square, which is much more than the company that makes the credit card readers we're familiar with.
Square builds the infrastructure businesses use to operate every day. The point-of-sale system is the first touchpoint, creating an easy interface for companies and customers. But the company has built out services like calendars, payroll, invoices, and even a capital arm that will provide loans to businesses. This allows Square to be an integral part of a business' operations, and the more services a customer uses, the longer they're likely to pay the company's 2.75% swipe fee for credit cards.