2 Growth Stocks to Buy and Hold Forever

The best stocks to hold forever are those businesses that benefit from consistent demand, have a long runway of growth, and possess a durable competitive advantage. Once these qualities are present, you can let time and compounding do the rest of the work.

Amazon (NASDAQ: AMZN) and The TJX Companies (NYSE: TJX) fit that profile. Here's why these stocks could be excellent additions to your portfolio.

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1. Amazon

Amazon's online retail business has made it one of the strongest brands in the world, driving more than $269 billion in annual revenue through its e-commerce platform. But the biggest reason the stock looks like a "forever" buy is that Amazon is also scaling highly profitable businesses outside of retail, such as cloud computing.

Amazon Web Services (AWS) posted accelerating growth last year. Fourth-quarter segment revenue grew 24% year over year, putting AWS at roughly $142 billion in annualized revenue. Customers are choosing AWS for its cutting-edge services, such as Bedrock, which help companies build and deploy AI-powered applications.

The AWS growth story is still early, as only about 10% to 15% of global IT spending has shifted from on-premise servers to the cloud. Because AWS accounts for roughly half of Amazon's total profit, further growth in this segment could significantly impact shareholder returns.

One of the company's key advantages is AWS's role in powering AI in Amazon's e-commerce business. For example, AWS's AI capabilities have supported Amazon's new shopping assistant, Rufus -- improving the shopping experience and helping drive higher purchase rates. It also powers product recommendations and optimizes delivery routes for Amazon's transportation network.

The synergies between Amazon's cloud and online retail business create a formidable advantage. This will take the business (and stock) a long way for decades to come.

2. TJX Companies

TJX has been a rewarding stock to hold for many years -- turning a $1,000 investment 20 years ago into roughly $25,000 today. As the leading off-price retailer in apparel and home fashions, it's built a model that is difficult for competitors to replicate. It generally offers merchandise from top brands at 20% to 60% below typical full-price retail. That is a meaningful competitive edge.

On top of deep discounts, TJX offers a constantly rotating assortment of merchandise, creating a "treasure hunt" experience that keeps customers coming back. This is a powerful retail model that resonates across age groups and income levels.

The company continues to execute well. Each segment posted solid sales growth last year, including Marmaxx (TJ Maxx, Marshall's and Sierra stores), HomeGoods, its Canada operations, and the international segment. Consolidated comparable sales grew 5% last year, and disciplined cost management drove a solid 11% year-over-year increase in adjusted earnings per share.

Meanwhile, the company still has opportunities to expand globally. The company ended fiscal 2026 with 5,214 stores worldwide, but management sees room to expand its footprint to roughly 7,000 locations in the long term.

TJX shows that you can find wealth-building investments in unexpected areas of the economy. It has a resilient business model built on low prices, and this should lead to many more years of growth for shareholders.

John Ballard has positions in Amazon. The Motley Fool has positions in and recommends Amazon and TJX Companies. The Motley Fool has a disclosure policy.