3 Growth Stocks to Buy and Hold Forever

Finding stocks that you can buy now and hold forever is the goal of nearly every investor. These low-maintenance stocks that have the potential to beat the S&P 500 (SNPINDEX: ^GSPC) can make up the backbone of a portfolio and allow you to divert your attention to other investments that are more timely.

Three stocks that I think are great options to buy now and hold forever are Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), Taiwan Semiconductor Manufacturing (NYSE: TSM), and Amazon (NASDAQ: AMZN). Each of these companies is a stalwart in its own sector and has stood the test of time.

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Alphabet

Alphabet has been slated to lose market share and become less dominant at least a handful of times over the past decade. This causes the stock to sell off, but the result is always the same: Alphabet retains its dominance. This happened earlier this year when generative artificial intelligence (AI) was supposed to replace Google Search, but investors eventually realized that Google had integrated AI search overviews into the platform, evolving it to be relevant in the next phase of search.

Alphabet also has several other investments that could pay off over the long run: cloud computing, self-driving cars (Waymo), and quantum computing. All of these other bets will help Alphabet stay relevant, but its Google Search business will still be at the core of everything that it does. Despite how mature this business unit is, it had an excellent Q3, with revenue growing 15% year over year to $56.6 billion. That's quite impressive considering its size and maturity, and it shows that Alphabet isn't going anywhere anytime soon.

I think it's an excellent stock to buy now and hold forever, and while there will be plenty of ups and downs, the ups should be far more prevalent.

Taiwan Semiconductor

The artificial intelligence race has several viable competitors offering excellent computing units. However, none of these companies can manufacture chips themselves. Instead, they farm out that work to Taiwan Semiconductor, which is the world's largest chip manufacturer by revenue. As long as there is demand for chips, TSMC will continue to be an excellent stock pick.

While AI is using a ton of TSMC's production capacity right now, self-driving cars and quantum computing could take over this trend years down the road. The reality is there are few companies positioned to capture technological innovation like Taiwan Semiconductor is.

Although the chip industry is cyclical, the peaks of these cycles always seem to get higher and higher. This means TSMC's stock will be volatile over a multiyear time frame, but that volatility is worth it to capture the upside of the chip industry leader.

Amazon

Amazon may seem like a boring e-commerce business, which it partially is. Amazon has shifted how consumers purchase items permanently, and this has led to Amazon building out its logistics empire. But Amazon has also shown a remarkable ability to launch new products.

One of those is Amazon Web Services (AWS), its cloud computing platform. AWS was the first provider in this industry, and continues to be the largest. Amazon also launched an advertising service that has become a gold mine for the company, as it has exactly the information companies want to see to inform their advertising, because users are coming to Amazon when they want to purchase something.

While I'm not sure what the next big thing is for Amazon, its management team likely already has several ideas in the works. Another area where it could see success is international expansion, an area that has long been unprofitable. If Amazon can boost its profitability in these regions, it could dramatically improve its overall profit margin. This culture of constant innovation makes me excited to invest in Amazon, as it has the potential to be a long-term outperformer.

Keithen Drury has positions in Alphabet, Amazon, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Alphabet, Amazon, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.