In Warren Buffet's 1988 letter to Berkshire Hathaway shareholders he wrote "when we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever." What Buffett fully understands is that long-term compound interest is an investor's best friend. Holding shares of a growing business over many years can truly work wonders for an investor's financial goals.

(NASDAQ: TSLA) and Amazon (NASDAQ: AMZN) have already demonstrated that they have the ingredients to make investors a lot of money. Here's why these companies can continue to deliver shareholder returns for a long time.

Tesla has a market capitalization of $705 billion -- the value of all the shares outstanding. This looks exceedingly high for a car company, but it reflects Tesla's industry-leading profit margin with more growth ahead.

Continue reading

Source Fool.com