- It is best to carefully consider your financial circumstances when deciding which stocks are the best to buy right now. Read our stock investment guide to gain an idea of where you stand. Establishing an emergency fund, allocating assets, and determining the appropriate time to invest in equities are just a few of the subjects covered.
- These stocks are solid options if you’re looking to invest for the long haul. I need insight into their plans for the coming weeks and months. All of these could drop in the near future if inflation remains high for longer than predicted or the United States enters a recession.
- I tried to include a wide range of options, but this is by no means a diversified portfolio. Instead, these are the long-term equities I believe in the most beyond 2023. An exchange-traded fund (ETF) like the Vanguard Total World Stock Index Fund (NYSEMKT:VT) is a good starting point for a diversified portfolio.
So, without further ado, here is a list of the top 10 stocks you should buy right now and keep for the long term, in order of market capitalization from smallest to largest, along with a brief discussion of my purchase thesis for each.
Top 10 stocks in 2023
- Etsy (NASDAQ:ETSY), $17 billion
- Pinterest (NYSE:PINS), $18 billion
- Block (NYSE:SQ), $46 billion
- Shopify (NYSE:SHOP), $44 billion
- Realty Income (NYSE:O), $42 billion
- MercadoLibre (NASDAQ:MELI), $55 billion
- Intuitive Surgical (NASDAQ:ISRG), $91 billion
- Walt Disney (NYSE:DIS), $189 billion
- Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B), $688 billion
- Amazon (NASDAQ:AMZN), $992 billion
Summarized sales pitches for each stock
You may be asking why I chose each company from my list of the top 10 stocks to buy right now. Here’s a quick review of why each equity is a good long-term investment.
Until the COVID-19 epidemic, Etsy was thriving as a platform for creatives to sell their wares to consumers searching for something a little different from the standard fare of online retailers. Internet sales skyrocketed during the pandemic. On the other hand, Etsy took off like a rocket, expanding at more than twice the rate of all e-commerce combined.
Etsy’s meteoric rise is remarkable, given the difficulty of competing with mass-produced goods, but its success in satisfying demand for one-of-a-kind facial masks undoubtedly helped. The second quarter of 2022 saw a 141% increase in marketplace sales volume on Etsy compared to the same period before the epidemic.
My focus throughout this list has been on systems with robust infrastructures. It’s not a stretch to say that Etsy is among them. Fighting Amazon head-on is a risky business strategy that only a select few online retailers have been able to pull off. Etsy did better than survive when Amazon launched its site for handmade things. However, we may be only at the start of a fantastic growth narrative in the long run.
The potential value of the market Etsy can tap into is in the hundreds of billions of dollars because of the power of its platform and brand. Due to the current collapse in growth stocks, the stock price has dropped dramatically, making it a good time for long-term investors with the patience to investigate more.
2. Social networking website Pinterest
Pinterest is a refreshing haven in an otherwise bleak and divided online world. That’s not surprising, considering that Pinterest mostly focuses on sharing and discussing creative concepts.
Pinterest is a place where people may concentrate on objects rather than people. Pinterest is a visual bookmarking and sharing service that helps users become motivated to complete various projects, such as constructing a dream deck, making a kid’s birthday cake, or changing their clothing.
Pinterest’s user base shrank slightly as pandemic restrictions were lifted worldwide, contributing to the platform’s performance decrease in 2022. But the latest financial reports suggest that the number of users has leveled off for the time being. Also, Pinterest has a lot of room to expand in the future because it has a tiny fraction of Facebook’s user base.
Especially as it moves away from its traditional ad-focused business and tries to discover ways to include e-commerce into its platform, Pinterest’s tremendous opportunity to monetize its users is the most intriguing thing for long-term investors.
This about-face makes a lot of sense. Pinterest appointed e-commerce veteran Bill Ready as its new CEO to speed up its transformation from a social media platform to a site where people find goods they might want to buy. Realizing its e-commerce potential may take some time, but patient investors stand a good chance of being rewarded handsomely.
It’s simple to imagine the potential for discreet marketing, suggestion-based lead generation, and product placement if consumers were already in the area. With 80% of its user base located outside of the United States but only a portion of its money coming from there, the potential for foreign monetization is enormous.
Block, formerly known as Square, has expanded from a specialized hardware payment processor to a comprehensive financial platform for businesses and consumers. Over the past four quarters, Block’s merchant services processed about $188 billion in payment volume, and the company also provides several complementary services to companies.
Block’s Cash App boasts 47 million users and allows users to send and receive money, make deposits and withdrawals, buy and sell stocks and Bitcoin (CRYPTO:BTC), and much more.
Block has recently bought the Afterpay, buy now, pay later system and the Tidal music app. The company will likely grow and prosper along with its ecosystem. Block has earned a spot on my list of the ten greatest stocks to purchase right now because the long-term trend toward cashless payment usage still has a long way to go, and since the company has numerous possible growth verticals, it might pursue.
Shopify runs a platform that facilitates e-commerce for companies of varying sizes, with a special emphasis on helping small businesses get off the ground and expanding together with Shopify as they expand. For as little as $29 per month, businesses may subscribe to Shopify and take advantage of the platform’s numerous features, including payment processing solutions and logistics.
Shopify’s success can be attributed to the company’s “one-stop shop” mentality toward allowing e-commerce. It has surpassed all other companies, including Amazon, regarding the volume of online purchases made through its ecosystem. Shopify, however, may have just begun. Over the previous four quarters, the platform has earned over $5 billion in revenue, but this is only a portion of its estimated $153 billion (and growing) market opportunity as more merchants focus on online sales.
Less than 15% of all retail sales in the United States are online. And Shopify is in second place, with a big advantage over some of the top online shops in the world. Shopify is a clear pick for the best companies to buy in 2023, with shares down substantially in the current market dip due to recession fears and signs of a slowdown in consumer spending.
5. Realty Income
Realty Income is one of the most well-rounded stocks for long-term investors because of its strong value, steady growth, and high dividend yield.
If you need to become more familiar, Realty Income is a real estate investment trust or REIT and generally invests in freestanding, single-tenant retail properties. Top tenants include well-known names like Walgreens (NASDAQ:WBA), Dollar General (NYSE:DG), and FedEx (NYSE:FDX). Realty Income has a portfolio of over 11,000 properties in the United States and Europe, the majority less susceptible to the effects of the recession and the rise of e-commerce than other types of retail businesses. Moreover, the triple-net lease structure utilized by Realty Income facilitates the generation of a reliable and consistent source of revenue.
The results speak for themselves. With an annualized total return of 15.1% since its NYSE IPO in 1994, Realty Income has outperformed the S&P 500. It has increased its payout an incredible 116 times with no dividend cutbacks in almost 600 months (current annual yield is roughly 5%) of consecutive dividend payments.
MercadoLibre is one of my favorite long-term stock ideas because it has the potential to grow into the Amazon of Latin America. The business runs an online marketplace widely used in some of the region’s most populated countries, such as Brazil and Argentina.
To be sure, MercadoLibre is about a lot more than just that. It runs various services, including the rapidly expanding Mercado Pago payments network, the Mercado Envios logistics service, and the Mercado Créditos business loan platform. About two-thirds of the $120 billion in annual volume processed by Mercado Pago came from sources outside the company’s e-commerce platform. The marketplace saw $8.6 billion in goods volume in the second quarter of 2022. Both of these are expanding at a rapid rate. Moreover, Mercado Credito is not to be disregarded because it is the company’s newest and most rapidly expanding business unit. Mercado Credito’s loan balances have increased to $2.7 billion, more than tripling in size during the past year.
Even better, each of these companies is still in its infancy. MercadoLibre processes less than 10% of the payment volume that PayPal (NASDAQ:PYPL) does, and its merchandise volume is around 6% of Amazon’s. It follows that there is a great deal of unused runway available.
MercadoLibre is not only the Amazon of Latin America but also PayPal, Square, Shopify, and many others bundled into one. It is in a far more nascent stage of development. MercadoLibre may reap significant long-term benefits from the changing e-commerce and financial scene in Latin America in the years to come.
7. Intuitive Surgical
Robot-assisted surgery is more precise and reliable than human surgeons. Since I first became aware of Intuitive Surgical shares in 2005, this general idea has mostly stayed the same. The da Vinci surgical system dominates the market, and the “razors and blades” business model allows the company to reap consistent profits from its products.
Although Intuitive Surgical currently dominates its market, the company still has plenty of room to expand as more hospitals begin using its surgical equipment and as more treatments are developed for them. The introduction of robot-assisted surgery into numerous worldwide markets has the potential to be a long-tail growth accelerator for this wonderful industry for decades to come.
Regarding a resume, Disney’s production company is like all-season tires. Disney’s theme park and film industries took a hit during the pandemic, but the company’s new streaming service, Disney+, has become a success much faster than anyone anticipated. Less than three years after its introduction, Disney+ has more than 150 million users, surpassing the company’s planned five-year goal of 60-90 million.
Fans will flock to Disney’s parks and theatres in droves in 2022. In reality, initiatives have encouraged higher per-guest spending in Disney’s parks, resulting in a higher income than in comparable pre-pandemic years. Disney+ has been an enormous success on the streaming front, and the corporation is doing the right thing by putting most of its attention into developing it and its other streaming services, Hulu and ESPN+.
Some have even suggested that Disney represents the pinnacle of reopening plays and pandemic-fueled growth businesses combined. Given its incredible intellectual property portfolio (Marvel Cinematic Universe, Star Wars, ESPN, Pixar, Disney) and its cash-machine theme park industry, Disney stock is arguably the safest option here. And as its most cutting-edge divisions develop, it still has enormous room for expansion.
9. Berkshire Hathaway
While the other picks on this list are growth stocks, this one is the safer bet regarding value. Among the roughly 60 subsidiaries that Berkshire Hathaway owns are well-known brands, including GEICO, Duracell, and Dairy Queen. Many of Berkshire’s investments, including its massive stakes in Apple (NASDAQ:AAPL), Bank of America (NYSE:BAC), Chevron (NYSE:CVX), American Express (NYSE:AXP), and Coca-Cola (NYSE:KO), were handpicked by legendary investor Warren Buffett, who at age 92 still manages the bulk of Berkshire’s investments. Berkshire’s portfolio of common stocks is worth more than $340 billion.
Though Buffett’s critics will claim he’s lost his fastball, Berkshire has been able to outperform the market for several years despite its vast size. The 3,600,000% return (not a typo) that Berkshire has generated since Buffett took over is highly unlikely to be repeated. Still, there is every reason to expect it to continue outperforming the S&P 500 in the years to come. To put it another way, if Berkshire were a mutual fund, it would be the world’s largest actively managed mutual fund.
There will come a time when Buffett is no longer CEO. However, Berkshire is his legacy, and he has spent years future-proofing it to ensure its health even after he has passed from the scene. He is so confident in the company that he and his business partner, Charlie Munger, have systematically repurchased shares. We consider that a positive indicator, especially because we are long-term investors.
Most consumers don’t need to hear much of an “elevator pitch” about Amazon. With around $600 billion in gross product sales in 2017, the corporation has a commanding lead in the U.S. e-commerce sector. Its Amazon Web Services cloud platform is also highly successful.
The Bottom Line
Nonetheless, the room for expansion is larger than one might assume. We are far from reaching our full potential in online shopping; less than 15% of all U.S. retail sales occur online. The cloud computing sector is also somewhat new. Amazon has a lot of room for growth in other industries, such as healthcare, food stores, local markets, and more.