Warren Buffett will step down from his role as the CEO of Berkshire Hathaway at the end of the year. Although his legendary decade-long tenure is coming to an end, investors can still learn a great deal by studying the man’s investing philosophy and examining the conglomerate’s famous portfolio, which contains many excellent buy-and-hold options.

Two of the top picks among Berkshire Hathaway’s 41 holdings are Amazon (AMZN 0.23%) and Visa (V 1.19%). These market leaders have the potential to deliver superior returns over the next decade.

Here is why.

1. Amazon

Amazon is a highly profitable company with U.S. and international operations in e-commerce, grocery shopping, video and music streaming, advertising, and cloud computing. However, outside of its cloud operations, the company’s business is relatively low-margin.

In the second quarter, Amazon’s North America and international segments had operating margins of 7.5% and 4.1%, respectively. Here’s the good news: In the next decade, e-commerce should continue expanding internationally, granting significant growth prospects to these parts of Amazon’s business.

In the meantime, the company will seek to improve its margins by implementing artificial intelligence (AI) initiatives across its operations. The company has deployed more than a million industrial robots in its warehouses to that end. Amazon’s North America and international segments generate hundreds of billions of dollars in annual revenue. Even modest margin improvements annually over the long run could have a meaningful impact on the company’s bottom line.

Then there is Amazon’s fast-growing cloud unit. It is responsible for most of the company’s operating and net income, thanks to its much juicier margins. With a suite of AI services whose demand continues to grow, Amazon Web Services should maintain this momentum for the foreseeable future. Lastly, some of Amazon’s newer initiatives are expected to make a meaningful impact in the next decade as well.

Consider the company’s Amazon Pharmacy. The U.S. prescription drug market is expected to be worth approximately $374 billion in revenue this year. Amazon boasts 180 million Prime members in the U.S. and offers a range of perks, including fast and free shipping, allowing patients to avoid the long lines at pharmacies. If the company can scale this business and the rest of its healthcare operations, it could have a meaningful impact on its results by 2035.

Even without that, though, Amazon’s prospects for the next decade look highly attractive. Investors can safely add shares of the e-commerce specialist and hold onto them for a long time.

2. Visa

Visa owns one of the world’s leading global payment networks. The company facilitates credit and debit card transactions, earning a fee for each. So, every time anyone swipes or taps a card branded with Visa’s logo, the company pockets a percentage of the transaction amount. That’s quite the business model.

To get an idea of the scale of Visa’s business, consider that there are about 5 billion of its branded cards in circulation across some 200 countries, and the company supports hundreds of billions of transactions annually and trillions in total payment volume.

The result: Visa generates consistent revenue and profits, and it has for the past decade. The company also boasts a high-margin business. Visa’s network infrastructure is already in place and can support its transaction volume with minimal additional cost.

The financial specialist also avoids the headaches associated with credit risk, as it does not issue the credit card itself. This also means it doesn’t receive money from interest. Still, Visa’s fee-based, capital-light model yields gross and net margins of around 80% and 50%, respectively, which is exceptional for a company of its size.

Although Visa has already achieved tremendous success, there is still plenty of room to grow, as the world increasingly requires digital (non-cash or check) methods of payment. Besides the fact that cash is clunky and less convenient to carry in high amounts than a credit card, the growth of e-commerce is also playing a role in this, since cash is an option in physical retail stores, but digital methods of payment are practically mandatory on e-commerce platforms.

Visa still estimates there’s trillions worth of cash and check transactions to bring into its ecosystem. The company should ride that wave in the next decade and deliver excellent returns along the way.

Prosper Junior Bakiny has positions in Amazon and Berkshire Hathaway. The Motley Fool has positions in and recommends Amazon, Berkshire Hathaway, and Visa. The Motley Fool has a disclosure policy.

Nuclear power is all the rage right now. NuScale Power (SMR 9.45%) has a market cap of $11 billion, and its stock is up 360% in the last 12 months. Hype is growing for this resurgent energy solution to help match demand from data centers and artificial intelligence, which are growing like gangbusters.

However, risks abound for investors in this pre-revenue stock with a market cap above $10 billion. Here are two other industrial stocks I predict will be worth more than NuScale Power 10 years from now.

Rocket Lab’s strong growth

First up, we have Rocket Lab (RKLB 4.49%), which has around the same market cap as NuScale Power. The first advantage Rocket Lab has over NuScale Power is the fact that it actually generates revenue. That’s not a high bar, but a clear distinction that needs to be made. It is a disruptive rocket launch and space systems company nipping on the heels of SpaceX’s dominant market share in the industry.

With the Electron rocket, Rocket Lab regularly performs trips for commercial customers and the United States government, executing 59 successful launches and having 31 planned missions currently in its pipeline. It is the only company besides SpaceX to consistently launch payload rockets for customers, which they pay a pretty penny for.

Besides rocket launches, Rocket Lab is working to build the systems that companies actually launch into space. This includes communication systems, solar panels, and payload vehicles. Over the long term, it is aiming to build its own constellation of satellites, although what it aims to do with these satellites is unclear.

In the future, Rocket Lab will debut its Neutron rocket system, which is much larger than the Electron, translating into higher revenue per launch. Today, the company generates $466 million in revenue. Over the next few years, Rocket Lab has a chance to greatly grow its sales with the debut of the Neutron, expansion of its space systems, and working through its current product backlog of over $1 billion. This will get the company on a trajectory to be a much larger stock than NuScale Power in 10 years.

Rivian’s comeback potential?

A second stock that will be larger than NuScale Power in 10 years is Rivian Automotive (RIVN 2.46%). This is a fallen angel in the electric vehicle space aiming to get its mojo back with new product launches. The stock is down 92% from all-time highs after its much-hyped initial public offering (IPO).

Rivian debuted in the electric vehicle sector with premium trucks and SUVs. This limited its addressable market. Stagnating deliveries to customers have followed. Reviews say it has a great car, just not one for a wide audience that can afford a vehicle that costs upwards of $100,000.

Next year, it is aiming to launch the R2, a mid-size SUV with a much more affordable cost of $45,000. This should greatly increase Rivian’s annual deliveries to customers, which are currently hovering below 50,000. Without this scale, Rivian will struggle to generate positive cash flow. Free cash flow has improved in recent years but was negative $1.86 billion over the past 12 months.

A scaled-up Rivian Automotive can grow its annual revenue from $5 billion to between $15 billion and $20 billion, and eventually higher over the long term, with vehicles that appeal to mass audiences. Profit margins will be slim, as with all automotive businesses, but this should lead to at least $1 billion in annual earnings (an approximate 5% margin at $20 billion in revenue), which will easily help it obtain a larger market cap than NuScale Power in 10 years.

RKLB Revenue (TTM) data by YCharts

Why most stocks will be worth more than NuScale Power in 10 years

Being larger than NuScale Power in 10 years will be simple. It may look like a large company today with a market cap of over $11 billion, but this is a pre-revenue company. All of its revenue today is from contracts to plan on building its products; they come with no positive unit economics and can be considered a wash from costs.

It generates zero dollars in revenue today. If its plans for nuclear energy development and its small modular reactors come along on schedule, it will not generate any revenue until 2030. Even so, it will probably be negligible revenue, given how its projects are essentially tests for the modular technology. It has not been proven yet that this technology can work economically or much better than large reactors. A previously committed project in Utah was canceled because of delays and cost overruns.

NuScale Power talks a big game, but it keeps kicking the can down the road when it comes to actually building and deploying a product. I don’t expect this to change over the next 10 years this is a dangerous stock to buy and one headed much lower in the years to come. For this reason, stocks such as Rivian and Rocket Lab are better bets and should be larger than NuScale Power in market capitalization 10 years from now.

Brett Schafer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Rocket Lab. The Motley Fool recommends NuScale Power. The Motley Fool has a disclosure policy.