With over $78 billion in net worth, legendary investor Warren Buffett should not have any regrets in life. But earlier this year, the most successful stock picker in the world told investors at the annual conference of Berkshire Hathaway that he regrets not investing in Alphabet and Amazon when the companies were just getting started. The Oracle of Omaha even said that he was “too dumb” to foresee the potential of Google and Amazon. He also said that he underestimated the brilliance of Jeff Bezos, the founder of Amazon, who now has a worth of over $80 billion. Warren Buffett wasn’t a fan of tech stocks to begin with. Currently, the billionaire has long stakes in two stocks: Apple and IBM.
We believe that Amazon.com, Inc. (NASDAQ:AMZN) and Alphabet Inc (NASDAQ:GOOGL) still have solid growth catalysts and the stocks are worth your investment now. Both companies are working on futuristic industries. Google and Amazon are set to skyrocket more than they did over the last ten years. Therefore, you should buy these tech stocks now lest you regret the lost opportunity after a decade.
Amazon is a market leader is several industries, including e-commerce and Cloud. The company is now betting on the TV series and content industry with Amazon Studios. Analysts think that Amazon’s original content will become a big competitor of Netflix in years to come. Amazon Prime is already a huge success. Amazon now has a whopping 85 million paying customers in the US.
The company is also penetrating markets outside the US. About 2 million people in India pay per month to watch content on Amazon Prime. Amazon also has plans to dive into the IoT market, whose market value is expected to cross $470 billion by the end of 2020. Amazon’s ability to quickly adapt to the changing environment keeps driving its growth, making it one of the strongest tech stocks available.
Alphabet’s core strength is Google, which is a dominant player in the global search market. But Alphabet has at least 20 “moonshot” projects which are set to transform our future. Google has a strong footprint in the driverless cars segment. Alphabet is a pioneer in the smart home market, which is expected to have a total worth of about $138 billion by the end of 2023.
Alphabet’s other project which have investors’ attention include Google Fiber, Project Wing (a drone delivery project), Google X research lab (this lab is working on cancer-detecting pills and a device to treat Parkinson’s disease), energy projects, internet balloons, robots and smart contact lenses. The stock is up about 20% so far this year.