Whole Foods Market, Inc. (NASDAQ:WFM) still has plenty of room for expansion: management estimates its addressable market is around 1,000 stores from the nearly 330 it currently has in the U.S. and Canada, and international markets are practically untapped, so the company will most likely continue delivering growing profits to shareholders for years to come.
The stock is priced for growth with a P/E ratio around 36, but growth is something this healthy company has consistently proven it can deliver.
Google Inc (NASDAQ:GOOG) is everywhere
Google Inc (NASDAQ:GOOG) is much more than the dominant search engine in the world–the company owns many tremendously popular products and services like Gmail, Chrome, Maps and YouTube, among others, and it has also become a major force in mobile thanks to its widely successful Android operating system.
Almost everybody uses Google Inc (NASDAQ:GOOG) in one form or another, and the company monetizes its popularity via a profitable and scalable business model based on advertising. Google Inc (NASDAQ:GOOG) has operating margins in the area of 25%, and sales have increased at an average growth rate of 28.5% annually in the last three years, which is nothing short of remarkable for a company of this size.
Recent concerns regarding privacy issues are only a sample of the kinds of challenges a company can face when it operates in a high growth area where new and unexpected difficulties can always arise. But no regulatory or legal hurdles are going to derail Google from its long term growth trajectory.
Besides, Google Inc (NASDAQ:GOOG) is one of the most innovative companies in the world, developing futuristic technologies with enormous long term potential like its augmented reality glasses or its self-driving car. The Google Inc (NASDAQ:GOOG) growth story is far from over, so investors still have time to ride this widely popular giant for more long term gains.
Bottom line
It´s not necessary to be a sophisticated expert to find investments with superior long term potential, our experiences as consumers, and observing the world around us, can lead to some really smart investment ideas. If someone as successful as Peter Lynch says so, investors better listen.
The article A Simple and Powerful Investment Strategy originally appeared on Fool.com and is written by Andrés Cardenal.
Andrés Cardenal owns shares of Google. The Motley Fool recommends Ford, Google, and Whole Foods Market (NASDAQ:WFM). The Motley Fool owns shares of Ford, Google, and Whole Foods Market. Andrés is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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