Long-term investing demands a disciplined mindset capable of withstanding the inherent fluctuations found in stock markets. Understanding and managing emotional responses to market movements is as vital as the selection process of the investments themselves.
Market prices typically reflect short-term sentiments and news cycles, whereas the intrinsic value of a stock correlates directly with the enduring earning potential and asset base of the underlying company. Investors anchored in long-term strategies can interpret transient price declines not as deterrents but as opportunities to acquire solid assets at attractive valuations.
This perspective enables the identification and selection of fundamentally strong enterprises whose value proposition holds steady amid market volatility. Investors with available capital might consider allocations in companies that exhibit resilience and growth potential. Here we present an analysis of four such companies recommended for holding over a five-year span.
MercadoLibre: Latin America's Leading E-commerce Powerhouse
MercadoLibre demonstrates a commanding position in the Latin American e-commerce landscape, operating across more than a dozen countries, including key markets like Brazil, Mexico, and Argentina. The company's entrenched local presence, brand equity, and nuanced market insights provide it a competitive advantage over global counterparts such as Amazon.
The business model extends beyond marketplace services connecting buyers and sellers, encompassing an integrated fintech platform, Mercado Pago, a logistics division named Mercado Envíos, and digital advertising services. Notably, Mercado Pago has evolved into a comprehensive digital financial services platform offering payments, credit solutions, savings, and investment products. This infrastructure serves a significant unbanked demographic within the region, creating a loyal customer base with substantial monetization opportunities.
Financially, MercadoLibre reports consistent profitability with robust growth metrics. In its third quarter of fiscal year 2025, revenue increased 39% compared to the prior year, reaching $7.4 billion. The total payment volume processed surged by 41% year over year to $71 billion, while gross merchandise volume climbed 28% to $16.5 billion. Strong e-commerce performance in Brazil and Mexico contributed notably to these results, including a 39% year-over-year rise in successful items sold, totaling 635 million.
For investors aiming to diversify into e-commerce and fintech within emerging markets, MercadoLibre offers a profitable and strategically compelling option.
Microsoft: Capitalizing on AI Integration and Cloud Leadership
Microsoft has swiftly monetized generative artificial intelligence by embedding it across its expansive technology ecosystem. AI-driven services represented approximately 15 percentage points of Azure's revenue growth in the initial quarter of fiscal 2026. Additionally, over 70% of Fortune 500 companies have implemented Microsoft 365 Copilot, generating substantial high-margin recurring income streams.
The company has committed over $30 billion per quarter in capital expenditures to expand AI infrastructure and meet increasing demand. Azure itself remains a company pillar, contributing significantly to overall growth, with annual 2025 revenue exceeding $281 billion and a 15% increase year over year. Azure posted revenues surpassing $75 billion, a 34% year-over-year jump, and holds roughly 20% of the global cloud market.
Microsoft's balance sheet strength is considerable, reflected in its AAA credit rating, which is superior even to that of the U.S. government. Net income exceeded $100 billion for fiscal 2025, providing ample resources for research, development, and acquisitions. The company has consistently rewarded shareholders through two decades of dividend increases and substantial share repurchases, recently returning nearly $11 billion in a single quarter.
Looking forward, CEO Satya Nadella has set a target to more than double revenues to $500 billion annually by 2030, underscoring the company's ambitious growth trajectory.
Alphabet: Advancing AI Ecosystems and Semiconductor Innovation
Alphabet is deeply embedding advanced AI technologies, such as the Gemini model, throughout its vast suite of services including Search, YouTube, and Google Cloud. AI enhancements improve search accuracy, enrich YouTube user engagement, and tailor personalization, which in turn drive increased advertising revenue.
Rather than diminishing its core search business, AI-powered features like summarized responses have expanded advertising opportunities by increasing impressions and conversions, while opening new commercial avenues.
On the technological front, Alphabet leverages custom-developed Tensor Processing Units (TPUs)—application-specific integrated circuits optimized for deep learning calculations. These TPUs offer superior performance and energy efficiency relative to general GPUs and are now being sold to third parties through selective agreements with key AI customers like Anthropic, thereby establishing a high-margin revenue stream.
The Google Cloud segment, fueled in part by TPU sales, generated $15.2 billion in revenue during the third quarter of fiscal 2025, marking a 34% increase year over year. Analysts anticipate significant revenue expansion from external TPU sales, estimating billions in top-line growth by 2027. Beyond advertising and cloud, AI integration opens potential in robotics (through Waymo), healthcare, and enterprise sectors.
Alphabet also benefits from a strong financial position characterized by substantial cash reserves and low debt, complemented by a historical record of impressive shareholder returns.
Taiwan Semiconductor Manufacturing: The Semiconductor Fabrication Giant
Taiwan Semiconductor Manufacturing Company (TSMC) dominates the semiconductor foundry market, controlling an estimated 70% share worldwide. Investing in TSMC offers exposure to a broad base of chip designers without reliance on any single entity’s success in the AI domain.
As demand for AI computing escalates, TSMC’s capacity to produce the world’s most advanced chips is critical. Major industry players including Nvidia, Apple, and Broadcom depend on TSMC's manufacturing capabilities. The company commands a substantial technological moat, with competitors such as Intel and Samsung currently challenged to match its advancements.
TSMC projects AI-related revenue growth at an annual compound rate exceeding 40% over the next half decade. The company delivered record profits and revenue in Q3 2025, with revenues up over 30% year over year, and net income growing by 40%. Gross margins improved to 59.5%, underscoring operational efficiency.
Strategically, TSMC is expanding manufacturing beyond Taiwan, investing $165 billion to develop six cutting-edge fabrication plants in Arizona, with the first already producing volume output. Further investments are ongoing in Japan and Germany. Management aims to relocate 30% of its most advanced production capacity outside Taiwan by 2028. With shares appreciating approximately 40% year to date, early acquisition may be an advantageous move for investors anticipating continued growth.