The stock market hasn't been a happy hunting ground for investors in 2022, but investors willing to look past the volatility could make a fortune if they buy and hold solid companies for a long time. Advanced Micro Devices (NASDAQ: AMD), Palo Alto Networks (NASDAQ: PANW), and Amazon (NASDAQ: AMZN) are three high-flying companies that have made investors significantly richer over the years. Let's look at the reasons why investors looking to retire as millionaires after a decade should consider investing $50,000 in these three names.
It has been a terrible year for the stock market so far thanks to multiple headwinds ranging from geopolitical instability in Europe to rising interest rates to surging inflation. Growth stocks have been hit even harder, with a 36.7% slide in the tech-heavy Nasdaq-100 Technology Sector index that contains several fast-growing companies. With the S&P 500 entering bear market territory and analysts expecting the stock market to slide further, it won't be surprising to see stocks of fast-growing companies head lower.
To value a stock, free cash flow is often a better metric to use than earnings. But in the software space, it's the opposite.