2 internet stocks to hold forever

Great companies come along rarely.

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The internet is becoming more and more important to our everyday lives. We use it for shopping, research, news articles, entertainment and much, much more. The penetration of the internet into everyday life is becoming greater by the day and simply cannot be ignored.

Within the next few years, internet-capable watches, sunglasses and cars will be as common as the internet on our smartphones is now. But how can we take advantage of this?

Certainly there are companies that specialise in making apps or the hardware or software behind these high-tech inventions, but at this early stage it's always difficult to tell which companies will come out on top in the end.

Alternatively, investors have to look no further than Australia for two companies that are dominating their respective online markets driven by a slowly improving world economy and access to Asia.

Carsales.com Limited (ASX: CRZ) will be well known to most Australians who have ever considered buying a new or used car. The company dominates the Australian market and is taking strategic stakes in similar overseas businesses and complementary local companies in order to sustainably grow the business.

The most recent investment was in local car finance group, Stratton Finance. Carsales bought 50% of the company, which will drive increased revenue through motor vehicle finance from the website and dealers.

The company also owns a sizeable stake in Asian car listing group iCar Asia Ltd (ASX: ICQ), which aims to be the Carsales of Asia. This investment could be huge if iCar can successfully monetise the service and gain a convincing market share.

Similarly, Flight Centre Travel Group Ltd (ASX: FLT) will be well known to many Australians due to their extensive store network, catchy TV ads, and promotional emails. The company provides an exceptional service for domestic and overseas travellers and has been one of the very best investments since the lows of the GFC.

Flight Centre's shares dropped to $3.74 in 2009 before recovering to a high of $55 earlier this year.

Flight Centre's dominance in the domestic market has allowed it to expand overseas, which appears likely to help revenue grow strongly for years to come. Importantly, Flight Centre now has some of the largest and strongest economies in Europe, Asia, and the Americas covered.

Time to Buy?

Both companies have retreated from recent highs and look great for long-term investors!

Motley Fool contributor Andrew Mudie does not own shares in any companies mentioned. You can find Andrew on Twitter @andrewmudie

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