Here are the wonderful seven stocks I’m loading up on during the current market sell-off

The “Magnificent Seven” is the name given to seven of the most dominant technology companies: Apple, Microsoft (NASDAQ: MSFT), Nvidia, Alphabet, Amazon, MetaplatformsAnd Tesla. Unfortunately, things haven’t been great for these stocks in recent months, with none of the seven posting positive gains in that period.

Part of what led to this recent sell-off was Japan’s decision to raise rates and the effect this is having on investors (and many hedge funds) who are engaged conduct tradea strategy in which you borrow money cheaply to invest in fast-growing stocks, such as the Magnificent Seven.

There is also the uncertainty surrounding the American economy and the fear about how that could turn out. Despite all the uncertainty, Microsoft remains the stock I would buy during this period.

Many large technology companies rely heavily on a specific product or service

There are not many companies in the world that have been as successful as Microsoft in so many different areas. It’s like a big technical Swiss army knife that covers a wide range. And while other big tech companies may cover a lot of ground, many of them lean on certain products or services to keep the money coming in.

Here are five of the Magnificent Seven and their main source of income:

Source: company annual accounts. Percentages are rounded to the nearest whole percent.

Tesla hasn’t released vehicle-specific sales data, but for perspective, Model 3/Y deliveries accounted for more than 95% of total deliveries last quarter.

As these products and services disappear, so do these companies. If iPhone sales decline, Apple’s revenues will take a hit; if GPUs slow down, Nvidia will be in trouble; and if companies cut back on advertising spend, Alphabet and Meta will feel it.

A broad network and business customers help protect Microsoft in difficult times

Microsoft has three broad business segments, but these include many different products and services:

If companies decide to cut back on LinkedIn recruiting, Microsoft will still have the hugely successful Office software (Word, Excel, PowerPoint, Teams). If companies decide they prefer Amazon Web Services as their cloud provider, Microsoft still has its Windows devices, which thousands of companies use worldwide. If gamers decide to go the PlayStation route instead of Xbox, Microsoft still has a range of business services. and so on and so forth.

The story continues

It also helps that many of Microsoft’s customers are other companies. Consumers are generally the first to cut back on spending when the economy is shaky, while businesses typically maintain their investments in essential services and software.

It’s much easier to skip an iPhone upgrade cycle, delay getting the latest Tesla, cut back on Google ads, or avoid online shopping than it is to do without a cloud platform, enterprise software, or cybersecurity.

This is a good time to start playing the long game

It’s easy to get caught up in the short-term movements of the stock market. Even the most seasoned investors are guilty of this (myself included). However, it is important to remember that investing is a long-term strategy, as losing sight of this can lead you to make short-term decisions that are against your long-term interests.

If anything, selloffs like the one we are witnessing now provide an opportunity to buy shares at much lower prices than before. Some people see problems; some see an opportunity to buy the dip.

No one can predict how the stock market will move, and we have no control over that. What you can control, however, is consistency. By dollar-cost averaging, you can offset volatility and avoid a situation where you invest a lump sum right before a huge drop. It’s a great strategy to minimize risk while putting yourself in a good position to build wealth in the long term.

Should You Invest $1,000 in Microsoft Now?

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Suzanne Frey, a director at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, former director of market development and spokeswoman for Facebook and sister of Mark Zuckerberg, CEO of Meta Platforms, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Stefon Walters has positions at Apple and Microsoft. The Motley Fool holds positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia and Tesla. The Motley Fool recommends the following options: long January 2026 $395 calls to Microsoft and short January 2026 $405 calls to Microsoft. The Motley Fool has one disclosure policy.

Here are the wonderful seven stocks I’m loading up on during the current market sell-off was originally published by The Motley Fool