Including growth stocks in a retirement portfolio can add diversification, especially if the portfolio also includes more conservative investments like bonds or dividend-paying stocks.
Apple
What it does: Apple is a global mega-cap technology firm, producing products such as the iPhone, iPad and iMac.
By Jon Smith. Apple (NASDAQ:AAPL) is a growth stock that has managed to keep on innovating over the years. The first iPhone came out in 2007, but the upcoming new iteration will likely be just as popular. I think the company can remain in vogue in the coming years, largely thanks to the embracing of artificial intelligence. As a result, it should be able to monetise the new tech in a way that other firms are struggling to do.
A risk is the fallout from the recent Department of Justice ruling regarding Alphabet paying Apple to push users to Google search. With an estimated payment of $20bn in 2022, stopping this could leave somewhat of a revenue hole.
Yet with the share price up 20% over the past year and it being dubbed the safe haven of the so-called Magnificent 7 group, I think it’s a stock I’ll be holding onto for a long time.
Jon Smith owns shares in Apple.
BAE Systems
What it does: Developer and supplier of aerospace, defence and information security systems to contractors worldwide.
By Mark David Hartley. Like medicine, defence is an industry as old as humankind itself. Both are necessary evils that I’d rather do without yet am thankful to have. The Ukraine crisis accelerated a trend of increased defence spending in Europe, where underinvestment since the Cold War created a substantial market gap. With instability in the Middle East adding further demand, analysts forecast decades of consistent growth for the industry.
As Europe’s preeminent defence contractor and a key supplier to the US, BAE Systems (LSE: BA.) is as busy as ever and likely to remain so indefinitely. My only concern is a very high debt load that is getting increasingly close to its equity level. Fortunately, its extensive involvement in high-profile international initiatives makes it well-positioned to take on new contracts and boost revenues. It may not provide the high returns of competitor Rolls-Royce, but I believe its long-term prospects are more reliable.
Mark David Hartley owns shares in BAE Systems
Games Workshop
What it does: Games Workshop is a manufacturer of miniature wargames. It’s best known for its Warhammer franchise.
By Charlie Keough. Probably my favourite growth stock I own and one I plan to hold for decades to come is Games Workshop (LSE: GAW). The stock has been a top performer over the last decade, rising 1,581.1%.
I’m excited to see what steps the business takes in the years ahead as it keeps building out its licensing business. The biggest move it has made so far has been striking a deal with Amazon to turn its Warhammer 40,000 franchise into TV and film content.
There are some risks. The miniature wargames industry continues to grow. As it does, that will attract new players to the space. That will put pressure on Games Workshop.
However, the business has a strong market grip and loyal customers. I reckon the industry giant could be destined for the FTSE 100 one day. That’s why I plan on holding it until I retire.
Charlie Keough owns shares in Games Workshop and Amazon.
Microsoft
What it does: Microsoft is a technology company that is active in a range of industries including business productivity software, cloud computing, artificial intelligence, and gaming.
By Edward Sheldon, CFA. I don’t plan to retire for at least under 15 years. And the world is likely to change a lot in that time. However, if there’s one growth stock I’m likely to hold onto over this period it’s tech giant Microsoft (NASDAQ: MSFT).
Why this company? Well, there are a few reasons.
One is that it’s a major player in the cloud computing market. And this market is projected to grow strongly over the next few decades. Today, a large proportion of businesses globally are still not in the cloud.
Another reason is that the company is likely to be a leader in the artificial intelligence (AI) space. Not only is it a part-owner of ChatGPT, but it’s rolling out AI features across its software portfolio.
Of course, there are no guarantees that Microsoft will be a long-term winner. It’s likely to face intense competition in the years ahead from other Big Tech companies such as Amazon and Alphabet.
I’m optimistic that it will do well for me though.
Edward Sheldon owns shares in Microsoft, Amazon, and Alphabet
Scottish Mortgage Investment Trust
What it does: Scottish Mortgage Investment Trust aims to identify, own, and support the world’s most exceptional growth companies.
By Paul Summers. The idea of investing in tomorrow’s titans, particularly those that aren’t yet listed, sounds compelling to me. And this is why Scottish Mortgage Investment Trust (LSE: SMT) is currently the second biggest holding in my Stocks and Shares ISA.
A quarter of the portfolio is devoted to private companies, including Elon Musk’s SpaceX and battery developer Nortvolt. To be blunt, a good number of these bets won’t pay off. Even those businesses that succeed will face a lot of obstacles along the way. But the trust probably needs just one or two to blow up (in a good way) to outperform the wider market.
As an early buyer of Tesla and Amazon, Scottish Mortgage has a great track record for recognising future stars. So, I have no qualms about paying the relatively low management fee (0.35%) and keeping the trust in my portfolio for at least a couple of decades.
Paul Summers owns shares in Scottish Mortgage Investment Trust
