For me it would be Amazon (NASDAQ:AMZN).
Why? Well I’d want a company that operates in many different industries (to reduce my risk) and Amazon fits the bill here.
Today, it operates in a range of areas including online shopping, cloud computing, artificial intelligence (including AI chips), digital advertising, digital healthcare, space satellites, robotics, and self-driving cars.
I’d also want a company that has plenty of long-term growth potential. Looking at those industries above, Amazon certainly has this.
Zooming in on the cloud computing industry, it’s set to grow by more than 20% per year between 2024 and 2030 according to analysts at Goldman Sachs (to hit $2 trillion). Amazon is well placed to capitalise on this growth given that it’s the biggest player in the industry.
It’s worth noting here that Amazon has plans to be a one-stop shop for AI in the future. In the same way that it offers a comprehensive retail shopping platform for consumers today, it plans to offer a comprehensive AI platform for businesses in which all kinds of AI tools are available.
Additionally, I’d want a company that has strong financials and Amazon fits the bill here. This is a company with a strong balance sheet, a high return on equity, and rising profits.
One other thing I like about this stock is the valuation. Currently, the P/E ratio is under 30 and near a historical low.
Put all this together and the investment case looks pretty compelling, in my view.
