The fascination with increasingly intelligent AI chatboxes reflects the growing power of technology in our lives. Yet, some investors grimace just hearing the phrase tech stocks. I wouldn’t blame them. Tech stocks across the board recently fell and would not get up no matter what assistive device was deployed.
However, that means now is a strong time to invest in tech stocks that you can safely hold long term. And there are certainly a few. So without further ado, here are the industries and tech stocks I would buy and hold for the next decade.
The proven few
There are actually quite a few tech stocks I would invest in that have been around for more than a decade already. And they all have one major point in common: acquisitions.
Software companies that can identify smaller software companies that are essential providers are a game changer for these tech stocks. They’re able to identify what they need to make them stronger, without the heavy lifting, and simply acquire a smaller company to achieve that.
In fact, in the case of Constellation Software (TSX:CSU) and CGI (TSX:GIB.A), that’s their entire business model. They acquire software for essential services like library software, subway system operations, and more and turn them around so they can thrive. Then, under the new brand name, they can bring in substantial revenue.
Then, there’s a company like Open Text (TSX:OTEX), which again has been around for decades. But the difference here is it’s a cloud-based data management company that provides outstanding cybersecurity as well. It has been acquiring and making major partnerships for years. Now, it’s acquiring more businesses to give these partnerships what they need from Open Text.
These three tech stocks are a great deal right now. Constellation stock is up 8.73% in the last year, and 1,795% in the last decade. CGI stock is up 25% in the last year, and 371% in the last decade. Finally, Open Text stock is actually down by 5% in the last year, but up 245% in the last decade.
Then, there are the companies that may be newer, but certainly have a long growth path ahead of them. These again are in stable industries that will be around for decades to come. In this case, I would recommend Kinaxis (TSX:KXS) and WELL Health Technologies (TSX:WELL).
Kinaxis stock recently hit 52-week highs as the company soared past earnings estimates in the last quarterly report. What’s more, the supply-chain management software company continues to see its long-term contracts grow. It deals with small- to enterprise-level companies, providing stellar and diversified revenue that will continue to rise in the years to come. Especially in this time of ecommerce growth.
Then, there’s WELL stock, which is in the stable field of healthcare. Virtual healthcare, in particular, has seen immense growth since the pandemic. Despite the stock dropping into oblivion, it continued to see record-setting earnings results quarter after quarter. But it wasn’t until the latest quarter that WELL stock saw its shares improve again.
Kinaxis stock is now up 8% in the last year, and 1,297% since coming on the market in 2014. WELL stock is up 6% in the last year, and 2,738% since coming on the market in 2017.
If you think tech stocks are doomed to failure, you’re making a huge mistake. While there are certainly some companies that aren’t going to do well in the years to come, and will certainly have to prove their worth, these tech stocks already have. So don’t worry about picking them up in a downturn. In fact, you’ll be thankful you did.