Welcome to the 10 Best Long Term Stocks To Buy Right Now in 2021!
If you are looking to invest right now, good for you! There has never been a better time to invest in the last 10+ years than right now!
Why is that? Well due to the COVID-19 pandemic that is plaguing the world right now, the stock market has significantly dropped in value.
Everyone has heard the saying, “Buy Low, Sell High”, well right now we are in a low, so there’s no better time to buy!
Timing Your Investments
I made my first significant investment into a mutual fund, SWPPX, which contains the biggest 500 companies in the S&P 500. I invested $1,000 on March 6th, which bought me roughly 22 shares that were each priced at $45.60.
At the time, the coronavirus had just begun to get popular, and there was a lot of uncertainty going around. The S&P 500 had dropped to around 3000 from the recent high of almost 3400 points. Needless to say, I was fairly confident that we were near the bottom of the drop so I decided to invest.
Looking back now, the S&P 500 would actually drop to 2200 points a few weeks later, which as of now, is the recent low. Which of course I wish that I would have waited to invest for another couple of weeks.
So, the point is, it’s really hard to time an investment perfectly. Everyone knows that, but I just want to remind everyone that it is very smart to buy in slowly, to average out the price.
Especially at the point where we are right now, where many are saying the stock market is overvalued, and really should be a lot lower. It’s very likely that the stock market will drop again, but then again, it could come soaring back.
The bottom line is that we don’t know, so buy in slowly and you’ll be in good shape in the long run.
I bring this up just because I think this is a good time to mention it, when I could realistically see the stock market dropping again.
Nonetheless, I am still gearing up to invest again, this time, a bit more slowly. Instead of buying a mutual fund, I have decided to invest into 10 companies that I believe will succeed in the long run.
Investing Rules
When it came to picking companies to invest in, I based my decisions off of the 3 rules listed below.
Diversification
One of the most important things to do when investing is diversify. If you diversify, you have a smaller chance of losing money. In my upcoming investment I will be investing $1,000 into 10 different companies at $100 a piece. This way, even if one or two companies completely fail, the rest will most likely succeed, and therefore, I will likely still make money. That’s why I chose several different industries and several different companies in each.
Popularity
The next rule I followed when choosing companies was the company’s popularity. I think that it is important to invest into large, well-known companies, that will most likely succeed long-term. This is something I picked up from Warren Buffett, who likes to invest into companies like Coke, that are very well branded and are very popular among people. Take for example, Apple, who is very popular and will most likely succeed long-term.
Industry
The final rule I followed when picking these companies was that the industry that these companies are in should be growing now and should be projected to grow in the future. Therefore, there are a lot of tech companies on this list, because I believe that the world is turning more and more technologically driven.
Those are the 3 rules I used, and therefore we can finally jump into the list of the 10 Best Long Term Stocks To Buy Right Now in 2020!
10 Best Long Term Stocks To Buy Right Now In 2020
*It is important to note that all figures stated here were accurate as of May 27th, 2020, but may not be accurate at the time you are reading this. To be sure you should research these stocks for yourself.
Alphabet Inc. (GOOGL)
Description: Alphabet is the parent company of Google and several of it’s subsidiaries including YouTube and Nest. Alphabet owns several other tech companies.
Price: $1,400
5 Year Growth: 160%
Industry: Tech
Why I’m Buying: I have completely transitioned to using only Google apps for my work and watch plenty of YouTube as I know others do as well. I think that Google and YouTube are becoming the primary search engines on the internet and will only begin to become more popular.
Amazon (AMZN)
Description: Amazon is an e-commerce platform and a tech company that offers several other services including cloud computing, digital streaming, and artificial intelligence.
Price: $2,410
5 Year Growth: 461%
Industry: Tech and Transportation
Why I’m Buying: Amazon has had massive growth recently and continues to put many retail companies out of business. They have expanded to many other services as well that have a promising outlook.
Apple (AAPL)
Description: Apple is a tech company that sells consumer electronics, computer software, and other online services. They are best known for their iPhones, but have several other products as well.
Price: $318
5 Year Growth: 144%
Industry: Tech
Why I’m Buying: Apple products are extremely popular and Apple is always finding ways to create new products and keep up with the trends. They are also expanding into other services as well.
Netflix (NFLX)
Description: Netflix is a digital streaming platform and a production company.
Price: $420
5 Year Growth: 370%
Industry: Digital Streaming
Why I’m Buying: These days it seems like everyone has Netflix and I think the world is moving away from live television and more toward digital streaming companies like Netflix. Netflix has also started producing their own content which has been successful as well.
Microsoft (MSFT)
Description: Microsoft is a tech company that sells consumer electronics, computer software, and other services. Microsoft also owns several companies including Windows, Office, Skype, Xbox, Bing, OneDrive, LinkedIn, and Outlook.
Price: $181
5 Year Growth: 288%
Industry: Tech
Why I’m Buying: Microsoft is a tech giant and seems to own almost everything related to technology or computers. As technology progresses, I’m sure Microsoft will to.
Alibaba (BABA)
Description: Alibaba is a tech company specializing in e-commerce, retail, and other tech. They offer products available for wholesaling which many people use to run e-commerce business.
Price: $201
5 Year Growth: 125%
Industry: Tech and e-commerce
Why I’m Buying: Alibaba is used a lot by entrepreneurs running e-commerce businesses. I believe that Alibaba is one of the world’s leading wholesalers and will continue to grow as the online shopping industry does as well.
Crown Castle (CCI)
Description: Crown Castle is a real estate investment trust and the largest provider of shared communication infrastructure in the world.
Price: $163
5 Year Growth: 100%
Industry: Tech and Communications
Why I’m Buying: Crown Castle is the largest communication infrastructure company in the United States and will be very successful with the new 5g technology coming out in mobile phones.
Southwest (LUV)
Description: Southwest Airlines Co. is a major American airline and the world’s largest low-cost carrier.
Price: $34
5 Year Growth: -9%
Industry: Transportation
Why I’m Buying: The transportation industry has been hit hard by this pandemic, and I think Southwest is one of the companies that has the best chance at recovering.
Delta (DAL)
Description: Delta Air Lines Inc. is one of the major airlines in the United States and a legacy carrier.
Price: $26
5 Year Growth: -39%
Industry: Transportation
Why I’m Buying: Once again, the transportation industry has been hit hard and I think that Delta has a good chance at recovering and now it the perfect time to buy when the stock is at a great discount.
Tesla (TSLA)
Description: Tesla Inc. is an American electric vehicle and clean emery company that specializes in electric vehicle manufacturing.
Price: $820
5 Year Growth: 227%
Industry: Automobiles
Why I’m Buying: I think Tesla is leading the way in how the automobile industry will work in the future and as more and more people move toward clean energy, I see this as a must buy.
Check out more on this topic in our investing category!
The Takeaway
Looking back at this list, I see that I included a lot of tech companies. I know that I talked about diversification, but in this case, I believe that the world is becoming more and more technologically driven and therefore it is my favorite area to invest. I also highly recommend reading, “Quality Investing: Owning the best companies for the long term.” I hope you enjoyed this list and I hope that this helped you make a decision of what to invest in. So what are you waiting for? Go invest in the 10 Best Long Term Stocks to Buy Right Now!
