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When I buy stocks for my ISA portfolio, I’m obviously backing them to rise. But I have higher conviction in some than others.
Here are three holdings I expect to do well over the next decade. As such, I think they’re worth considering.
Pricing power
Let’s start with one powerful trend that’s ongoing: the rise of the world’s super-rich. According to Oxfam, the number of billionaires jumped 7.3% last year to 2,769. Multimillionaires are also increasing, especially in Asia.
This is an incredibly supportive backdrop for luxury carmaker Ferrari (NYSE: RACE). Last year, the firm shipped just 13,752 cars, with roughly 81% of those going to existing Ferrari clients, and nearly half to buyers who already owned more than one Ferrari.
The company deliberately limits production to maintain brand exclusivity. This has two powerful consequences. First, it gives Ferrari enormous pricing power. With demand far outstripping supply, it can raise prices, while still keeping first-time customers waiting in line.
Second, ultra-wealthy collectors create an incredibly resilient customer base. That makes the business less exposed to economic downturns.
One risk worth highlighting is that Ferrari has just postponed the timeline for its second EV model due to a lack of customer interest. If customers aren’t happy with the first Ferrari EV in 2026, this could harm the brand’s image.
Like its cars, Ferrari stock is far from cheap. But I think it will head higher by 2035 as aspirational multimillionaires multiply.
Robotaxis
Sticking with the car theme, we have Uber (NYSE: UBER). In Q1, trips grew 18% year on year to 3bn, while monthly active customers rose 14% to 170m.
Over the next decade, I expect driverless taxis to go mainstream. Google’s Waymo is now doing over 250,000 paid robotaxi rides a week in a handful of US cities, taking the total to more than 10m. But there are dozens of other autonomous vehicle start-ups.
Rather than spend millions marketing their own apps, I expect most to tap into Uber’s vast existing global network. Many have already signed partnerships, including Waymo in some cities.
One that hasn’t, though, is Tesla, which is tentatively launching its own robotaxis right now in Austin, Texas. Were Tesla to succeed, this could be a direct threat to Uber’s competitive position, at least in the US.
However, if robotaxis successfully scale up, there’s a chance that Uber becomes more profitable, given that drivers are its biggest cost today.
War on cash
I want to end with a more obvious unstoppable global trend, which is the shift towards digital payments. Whether it’s smartphones being used in the real world or for shopping online, the war on physical cash is relentless.
One obvious beneficiary is Visa (NYSE: V). In its last fiscal year, there were nearly 234bn transactions processed on its networks, up from 192.5bn two years before. And people spent a whopping $13.2trn using Visa cards worldwide!
Given that Visa takes a small cut of all the action, the firm is incredibly profitable. Its net margin sits comfortably north of 50%.
We’re seeing the digital payments trend now spreading to Africa, Latin America, and the wider Asian region. Barring regulatory intervention in Visa’s business, which is a key risk, I expect the stock to be much higher in 2035 than it is now.
