Finding long term stocks to invest in is a great way to ensure wealth and build toward your end retirement and financial goals. Filling your stock portfolio with a diverse selection of stocks that you plan to hold for the long term can help provide you stability and give a better chance of building wealth while reducing the amount of risk that you have. The good news is, there are plenty of different options for investors to choose from when they are looking for steady returns over the long term.
The 10 Best Long Term Stock Picks
If you are looking to find some good long term stocks to invest in, you might want to give some consideration to:
- Johnson & Johnson
- Berkshire Hathaway
Apple is known to have one of the largest market caps in the United States as it steadily climbs toward the trillion-dollar mark. The company has not only been a big player for years, but its continued innovation and the fact that it holds 15% of the market share of the smartphone industry and 10% of the tablet industry makes it poised for a continued forward progression long into the future. Now is a good time to consider making an investment as they are expanding into significantly larger markets such as China and India.
The small book reseller is now a conglomerate that has become a part of the American culture. The company is known to continue to evolve and make strategic acquisitions and partnerships to bring customers what they want and continue to grow the company for the investors. Their recent purchase of Whole Foods has promoted even more excitement among investors who feel that it will not only grow Amazon but also transform the Whole Foods store to become more accessible for the masses.
They are also continuing to develop in other avenues, such as their Amazon Web Services and Alexa personal assistant system. Amazon’s great strides have paid off for investors as the share price over the past five years has seen an increase of 376% and is expected to continue to grow.
3. Johnson & Johnson
The well-known health care and pharmaceutical company is known among investors as a dividend aristocrat. The company has known to increase dividends year after year for the past 60 years. In 2018 their dividend payment moved to $3.54, showing that they are continuing on the path of forwarding growth. In just the past ten years, they have seen annualized total returns of over 10%, causing their stock to climb consistently.
4. Berkshire Hathaway
For investors who are looking to swing for the fences, Berkshire Hathaway can be a great option to place your long term investments. That is if you can afford the cost. The Class A stock is so high, most Americans will be unable to afford it, but the Class B stock will be in reach for many investors.
The big draw to the company is the fact that many investors feel that investing with Berkerhire Hathaway gives them an in to a number of great companies here to stay, such as Benjamin More, GEICO, and Dairy Queen. Additionally, many investors feel like betting on Berkshire Hathaway is like betting on Warren Buffet, and whose better footsteps to follow than an investing legend?
Yet, when choosing to invest in this type of company, you have to be in it for the long term as the company’s trading dynamics will often follow the law of averages, which means bad news or events will sway the stock, but the fundamentals of the company will eventually draw it back to where it should be.
If you are looking to invest with another company that has been well established and continues to control a large portion of their market, then McDonald’s’ is definitely a company to consider putting on your list. While the company has long been a leader in the fast-food industry, the latest efforts of their new CEO with a revitalized menu, all-day breakfast, dollar menu, and digital ordering has given the boost they need to garner an even higher percentage of the market.
The past three years, McDonald’s has continued to perform well for investors with annual returns of 16% and an average dividend yield of 2.31%.
Consumer behavior has steadily been shifting to more e-commerce avenues and Wayfair as poised itself to be one of the top online sellers of home goods and furniture. Wayfair not only caters to the middle-income market but the high-income buyers as well. Even though the net income has been negative, the business is beginning to grow. This is similar to the position of Amazon a few years ago, so it is expected that Wayfair can push past this minor setback and continue to grow until it grabs a larger share of the retail market, the way that Amazon did.
Another company that has definitely earned its place on the list of top long-term stocks to buy is Alphabet, the parent company of Google. It is this company that has basically cornered the market in the world of search engines, online video watching, and the Android phone system. They also are attractive to investors as they are considered to be a very cash-rich company. They boast an impressive market cap of $770 billion, and their share price trades between $1,110 and $1,120 depending on whether you opt for Class A or Class C.
Both Class A and Class C shares of stock have gained about 90% over the past five years, and it is expected to see a bump with the recent investment in Waymo, a company that focuses on the technology for driverless cars.
While the recent tariff issues that are occurring with foreign policy are causing a hit in the Asian market for FedEx, it is still believed that this stock will bounce back and be able to perform well in the future. They are part of the growing change in the direction of retail sales, with many items being ordered online and shipped directly to customers’ homes. Consumers are moving away from brick and mortar shopping areas, which means that major e-commerce vendors will need the services of shippers that have solid networks, such as FedEx.
While some investors may be leery of shipping service, with companies like Amazon experimenting with their own courier system, they still rely on companies like FedEx to deliver a large portion of their products, and it is not likely that this will change in the near future. Additionally, the expected e-commerce boom is predicted to be so large that their will be enough to go around for all of the competitors in the game.
One fact of life is that everyone ages, and there is likely to be a time in your life when you will need help with your day-to-day life activities. Since aging is inevitable, and since the aging population continues to get larger due to health and medical advancements, investing in assisted living facilities is definitely a way to grow your wealth in the future.
Welltower is a real estate investment company that has put a large focus on both assisted-living facilities and senior-living solutions. Other areas they are invested in include memory centers, medical office properties, and post-acute care facilities. The changing demographics of the country continue to show the need for these services, which is only expected to become greater in the near future. So investing in Welltower can be a crucial piece in your long-term strategy.
Welltower is a sound investment as they have learned to absorb some of the risk commonly associated with the sector by making sure to spread their holdings over multiple properties.
Lithium is a commodity that is used in a number of applications and will continue to be part of any future endeavors, including Tesla’s use of the lithium battery as the next-gen fuel source. This makes the domestic lithium stock Albermarle poised to see a dramatic increase as more and more technology requires the use of lithium batteries.
Past years have shown a recent decline, mainly due to the fact that the supply began to reach high enough to meet the demand. As the prices of lithium began to skyrocket, many lithium companies such as Chile and Australia ramped up production to meet with the demand.
Even though the oversupply still exists today, it is possible for that situation to change quickly, especially as more and more technology industries move toward increased use of lithium batteries. When this occurs, the price of lithium and stock will begin to skyrocket again, and the benefit of the recent downturn is that you can acquire a strong position for a relatively smaller amount.
Choosing the best long term stock picks requires following the trends and patterns that the stocks have shown and making sure that you are choosing a good mix of industries that are poised to move forward in the long-term future. If you need a little more help choosing the right long term investment stocks for your portfolio, you can find out more information by downloading our free e-book or attending one of our webinars.