Welltower is a real estate investment trust that invests in healthcare infrastructure for leading senior housing operators, post-acute care providers and health systems. The wide variety of areas of healthcare that Welltower is involved in allows them to strategically arrange it’s different partners in close proximity to one another so that they can all work together to provide greater experiences for their patients. One of the reasons why I love Welltower as a long-term hold is because of a specific trend that will almost guarantee its growth in the future. According to Prb.org, the number of Americans aged 65 and older is projected to more than double from 46 million today to 98 million by 2060. As the industry leader among its competitors based on market capitalization, Welltower is strongly positioned to gain from this trend. As a REIT, Welltower is not very correlated with the rest of the stock market so it shouldn’t be too impact if a crash were to occur. Additionally, Welltower proves its superiority to its competitors as it exceeds them in both 5-year CAGR% (26.7%) and its interest coverage (2.4). Overall, senior healthcare infrastructure is an area that will grow substantially over time and Welltower is the company best positioned to take advantage of that trend.
NextEra is the world’s largest generator of renewable energy from the wind and sun with a market capitalization of $73,852 Million. People are becoming more and more aware of the harm created by pollution and have started to look for alternative forms of energy. NextEra provides that solution and proves to be a company that will experience strong growth going forward. It has consistently outperformed the S&P 500 the last four years and its gross profit margins have steadily increased over the years to 75% at the end of 2016. It is a very financially stable company that has decreased its liabilities over the years and maintained its financial leverage as well as its Debt/Equity ratios over the past four years. Overall, this is a company that provides a product that will increase in usage as time goes on, permitting the growth of this company and it is a very financially healthy company that provides investors with a sense of security with their investment.
Finally, Amazon is a firm that I love as a long-term hold. It has grown exponentially over the past several years and there is little reason to suggest that it is done. It has successfully established itself in the ecommerce industry, offering a wide range of electronics, clothing, books and furniture. It’s recent acquisition of Whole Foods has only helped it grow even more. Amazon recognizes that many people are too busy to go out and shop at brick and mortar stores anymore and that is not going to change going forward. Despite its success so far, there is still room for it to grow. According to Morgan Stanley Analysts, Amazon could start to expand its advertising sales which currently only generates minimal revenues, could generate $5 billion in 2018 and $7 billion by 2020. Amazon is also expanding into the online video services industry that Netflix currently occupies. However, by 2022, Amazon’s original content spending is expected to exceed that of Netflix which shows that Amazon could soon be the industry leader in that area as well. Amazon is a very safe company. It is practically net debt free holding cash amounting to $16.5 Billion and debt amounting to $17.9 Billion. Amazon figures to grow even greater as more of the world gains access to the internet and has access to their services.