Finding growth stocks is easy. Finding growth stocks you’d actually want to hold for a decade is considerably harder. Most high-flying companies eventually mature, face disruption, or simply run out of runway. The stocks that compound wealth over long periods combine durable competitive advantages with expanding addressable markets—a rare combination that separates true compounders from flash-in-the-pan winners.
Three companies currently fit this profile, and two are trading at unusual discounts following recent setbacks. Each faces near-term headwinds that have created selling pressure, but their long-term fundamentals remain intact. For investors thinking in years rather than quarters, these pullbacks represent potential entry points into businesses with legitimate decade-long growth trajectories.
BYD Company Limited (BYDDY)
Market Cap: $139 billion | Currently trading around $13 | 52-Week Range: $10.58 – $20.05
BYD remains the world’s largest electric vehicle manufacturer, producing 474,175 vehicles in November alone. But the stock has fallen 35% from its May peak as investors worry about intensifying competition from rivals like Geely, Chery, and even smartphone maker Xiaomi entering the Chinese EV market.
The concern is understandable. BYD’s net profits plunged 33% year-over-year last quarter as the company cut prices to maintain market share in an increasingly crowded field. Profit margins have compressed significantly, and the company faces pressure from both premium competitors and low-cost manufacturers attacking from below.
But the sell-off may have overdone it. China’s new-energy vehicle market—which includes both pure EVs and hybrids—hit a record 1.32 million sales in November, now exceeding traditional combustion vehicle sales. The market isn’t shrinking; it’s simply maturing. And mature markets favor established players with scale advantages, manufacturing expertise, and brand recognition—all areas where BYD excels.
Mordor Intelligence projects China’s EV market will grow at over 17% annually through 2030, providing ample expansion opportunity even as competitive intensity remains elevated. Revenue is expected to grow more than 21% in the coming year, suggesting volume growth can offset margin pressure.
What the current stock price doesn’t reflect is BYD’s battery technology leadership. The company ranks as the world’s second-largest EV battery manufacturer, supplying not just its own vehicles but competitors as well. As the industry shifts toward next-generation battery chemistries with better energy density and faster charging, BYD’s research capabilities and manufacturing scale position it to capture disproportionate value.
The 1.46% dividend yield provides some income while investors wait for the competitive landscape to stabilize. At 23% gross margins—compressed but not catastrophic—BYD maintains profitability while investing in future technologies. For long-term investors comfortable with Chinese market exposure, the 35% pullback has created an attractive entry point into the global EV leader.
SoFi Technologies Inc. (SOFI)
Market Cap: $33 billion | Currently trading around $27 | 52-Week Range: $8.60 – $32.73
SoFi has experienced a turbulent few months despite strong underlying business performance. The stock rallied significantly ahead of its November 11th cryptocurrency trading platform launch, only to sell off as insiders and major shareholders took profits. Then in early December, the company announced plans to issue $1.5 billion in new shares, diluting existing shareholders and triggering another wave of selling.
These near-term headwinds obscure what’s actually happening with the business. SoFi operates as a pure-play digital bank—no physical branches, just mobile and web-based financial services spanning checking accounts, loans, credit cards, and brokerage services. This online-only model delivers impressive unit economics, reflected in 60% gross margins that traditional banks can only dream of achieving.
The numbers support the bull case. Revenue grew 38% year-over-year to $950 million in the most recent quarter, extending a consistent growth trajectory. The company generated $139 million in net income the same quarter, demonstrating that digital banking can scale profitably without the massive overhead of branch networks.
Consumer behavior is shifting decisively in SoFi’s direction. A recent American Bankers Association survey found that 54% of U.S. consumers prefer mobile app banking, while another 22% use laptops or personal computers for financial management. Only 9% prefer in-branch visits. This secular trend away from physical banking infrastructure plays directly to SoFi’s strengths.
The $1.5 billion capital raise that triggered recent selling actually positions SoFi to accelerate growth. The company can fund customer acquisition, expand product offerings, and potentially pursue strategic acquisitions—all without the constraints of limited capital. While dilution never excites shareholders, companies with SoFi’s growth profile and profitability can often grow into dilution fairly quickly.
The stock’s recent weakness creates an opportunity to buy a proven digital banking leader at a more reasonable valuation following the post-launch profit-taking and dilution concerns. For investors believing in the long-term shift toward digital financial services, SoFi offers pure-play exposure to a trend that’s still in early innings.
Alphabet Inc. (GOOGL)
Market Cap: $2.9 trillion | Currently trading around $249
Alphabet might seem like an odd candidate for a growth stock watchlist. Google search is mature, Android faces increasing competition, and the company’s sheer size suggests limited expansion potential. But dismissing Alphabet as a “has-been” tech giant misses several powerful growth engines that are just hitting stride.
Google Cloud grew 33% last quarter to nearly $15.2 billion in revenue, generating $3.6 billion in operating profit. While still smaller than the advertising business, cloud has become a legitimate profit center rather than just a long-term investment. The division benefits from enterprises migrating workloads to the cloud and the explosion in AI computing demand—both multi-year tailwinds that show no signs of slowing.
YouTube continues defying predictions of maturity. The platform generated $10.3 billion in ad revenue last quarter, up 15% year-over-year. More impressively, Nielsen data shows YouTube is not only the most-watched streaming platform in the United States but the only major platform experiencing meaningful growth in viewer time spent. As linear television continues its secular decline, YouTube captures an increasing share of total video consumption.
The real surprise could be Alphabet’s chipmaking ambitions. Reports emerged in November that Meta Platforms is in talks to purchase billions of dollars worth of Google’s Tensor processors, which Alphabet initially developed for its own AI workloads. If Alphabet is entering the AI chip market—and the Meta discussions strongly suggest it is—the company could capture significant share of a market that Precedence Research projects will reach $900 billion by 2034, growing at nearly 30% annually.
This diversification matters. While Google search remains the cash cow, cloud computing, YouTube, and potentially AI chips provide growth vectors that can drive the company forward for another decade. The combination of massive free cash flow from mature businesses funding investments in high-growth markets creates a powerful flywheel.
At current valuations, investors get a proven advertising business, the third-largest cloud provider with accelerating growth, the dominant video platform, and a potential new revenue stream in AI chips. Few companies offer this combination of stability and growth opportunity at reasonable valuations.
The Long-Term Mindset
These three stocks require patience but offer the fundamental qualities that create multi-year winners. BYD dominates the world’s largest EV market while building battery technology leadership. SoFi rides the digital banking wave with superior unit economics. Alphabet combines mature cash generation with multiple high-growth business lines.
Recent setbacks have created entry points that may not persist once near-term concerns fade. BYD’s competitive pressures will stabilize as the Chinese market matures. SoFi’s dilution concerns will dissipate as growth demonstrates the value of additional capital. Alphabet’s aging-giant perception will shift as cloud and YouTube demonstrate their scale potential.