Why Young Investors Should Think Long on Stocks Like NVIDIA and Microsoft

July 27, 2025

If you’re in your 20s or early 30s, you’ve got something most investors would kill for: time. That’s your unfair advantage—and it makes long-term investing in powerhouse stocks like NVIDIA and Microsoft a smart move, not just a safe one.

Investing Isn’t About Getting Rich Fast

Let’s clear one thing up: Trading isn’t the same as investing.

• Trading is active. Stressful. Often emotional.
• Investing is strategic. Boring. Consistent.

And when you’re young, the best thing you can do is play the long game—especially with companies that are changing the world.

Why Tech Giants Like NVIDIA & Microsoft Still Have Room to Grow

These aren’t just "big companies." They're global infrastructure in the age of AI.

🔷 NVIDIA (NVDA)

• The undisputed king of AI hardware (GPUs)
• Powers everything from ChatGPT to autonomous vehicles
• Expanding into AI software, data centers, edge computing
• Hugely profitable, dominant moat

Yes, it’s volatile short-term. But long-term? It’s building the future.

🟦 Microsoft (MSFT)

• Cloud: Azure is now neck-and-neck with AWS
• AI: Massive investment in OpenAI, GitHub Copilot, and enterprise tools
• Recurring revenue via Office 365, Teams, LinkedIn, and Windows
• Cash-rich, dividend-paying, and globally diversified

Microsoft isn’t sexy—but it’s steady, smart, and AI-savvy.

The Compound Effect Is Real—And Wild

Let’s do some simple math:

If you invest £200/month starting at age 25 into an index or a mix of strong growth stocks averaging 10% annual return (historical S&P 500 ballpark):

• At age 45 → ~£150,000
• At age 55 → ~£325,000
• At age 65 → ~£680,000

That’s without increasing your investment or touching it. The real power? You let time and compound interest do the work.

Invest early. Invest consistently. Ignore the noise.

“But Aren’t These Stocks Expensive Right Now?”

Maybe. Short-term pricing is rarely “perfect.” But here’s the mindset shift:

• Good companies at fair prices > Average companies at cheap prices
• Long-term, it’s quality and durability that win

NVIDIA, Microsoft, Apple, Google—these aren’t meme stocks. They’re infrastructure for the next 20 years.

Diversification Still Matters

I’m bullish on NVIDIA and Microsoft, but you shouldn’t go all in.

My advice?

• 40-50% in strong tech/growth stocks (MSFT, NVDA, AAPL, GOOG, AMZN)
• 30-40% in index funds (like VOO, VTI, S&P 500 ETFs)
• 10-20% in international or emerging markets
• Optional: Dividend ETFs, REITs, or crypto as a smaller allocation

Long-term wealth isn’t just about picking winners. It’s about risk management and sticking to a process.

Tips for Young Investors (That Actually Matter)

• 📈 Start now, even with small amounts
• 📊 Use dollar-cost averaging (automated monthly buys)
• 🔒 Avoid panic-selling during dips—that’s when most people lose
• 🧠 Learn from Buffett, not Reddit
• 🧘🏽 Be boring. Let time do the flexing.

Final Thoughts: Play Offense with Patience

You don’t need to be a day trader. You just need a decade+ mindset.

Tech stocks like NVIDIA and Microsoft may dip, even crash short-term—but over 10–20 years, they’re backed by real cash flow, innovation, and global demand.

If you’re young, investing isn’t about timing the market—it’s about time in the market.

Set your foundations now. Let compound interest + high-quality companies carry you forward.

Want to start investing? Check out apps like Freetrade, eToro, or Vanguard (UK) to begin small. It’s never “too late”—but the earlier you start, the bigger the payoff.