Best Stocks to Buy for Your Portfolio: Investing is a great way to build wealth. It provides a sense of security, and it can even be a way to generate income. But with so many stocks to buy, how do you know which ones will be the best stocks to buy now in 2021? You don’t have to worry!
Here, we will outline some of the best stocks on the market today. We will also break down what makes them great investments and why you should buy them this year. Stay tuned for our top picks that are guaranteed to bring in significant returns over the next five years!
What Makes A Great Investment?
Investing is all about the time horizon. The best stocks to buy for your portfolio are stocks that you can expect to generate long-term returns. For example, an investor would not buy the tech stock Nvidia (NASDAQ: NVDA ) today and expect huge gains over the next five years. No, if the market turns sour, an investor would buy a portion of Nvidia and use that as a long-term hedge. A conservative investor would buy a small stake and then gradually increase their position over time.
Our goal is to identify stocks that will be big winners within the next ten years. They are stocks that are more likely to provide stable, reliable returns rather than chasing huge gains. In short, they are stocks that will outperform in a rising interest rate environment.
Why Investing in Stocks is Important
When you start investing, you don’t want to spend your money. You want to make sure that your investments generate returns to stay on top of your financial goals.
Of course, you’ll need to invest some money at first. It would help if you came up with a healthy chunk of money that you can use over the long term. If you try to invest too much money, you can get yourself in trouble quickly. Of course, you can buy stocks on sale. But once you reach the time you need to start making more significant investments, you need to sleep at night. You also want to have some money invested for the future. If you want your assets to pay you an excellent return over the years, you need to put money aside to meet these goals.
Top 5 Stocks to buy for your portfolio
Facebook Inc (NASDAQ: FB ) may be the poster child of the early stages of the social media bubble. The company’s stock has dropped 35% from its January peak, but I believe it is still a buy.
Facebook has grown into a truly global platform. With 2 billion monthly active users (MAUs) and 1.4 billion daily active users (DAUs), Facebook is serving the interests of consumers worldwide. This means the company is a huge advertiser. There’s also a rising trend of consumers using multiple services from the same platform. A trend that will benefit Facebook even further.
Finally, Facebook is spending billions to make the News Feed better. By listening to what the users want, Facebook grows its user base and gains popularity in Asia.
The company you know and love, Alphabet (NASDAQ:GOOGL , NASDAQ:GOOG ), dominates the world with its many technologies. Its Search engine, YouTube, Maps, Google Maps, Gmail, Google Play, Chrome, Android, Chrome OS, Google AdSense, Google AdWords, Google Cloud Platform, and several other offerings are some of the best.
Although the company is expected to report earnings per share of $32.12 on revenue of $39.23 billion for 2018, that doesn’t tell the whole story. Alphabet is expanding, and it’s constantly doing new things with its technologies. For instance, they just released Duplex, a fantastic tech that helps humans do more things faster.
And it is investing heavily in a variety of areas.
One stock that’s especially suited for your portfolio in 2021 is Facebook, Inc. (NASDAQ: FB ). The company is on fire right now! The company’s most recent earnings report showed that revenues were up 48% in Q2, with net income up 63%. While analysts were expecting 45% EPS growth and 60% revenue growth, the company’s earnings beat by two cents.
Facebook stock has had a good run since its IPO in 2012, and it is on a long-term upswing. Even after its recent run, the shares are still up 85% over the past five years. Facebook has much more room to grow because the market for social media is still growing, and the company’s new video tab provides another avenue for revenue.
Facebook also has a robust business model.
Amazon.com, Inc. (NASDAQ: AMZN ) is no ordinary company. The e-commerce giant controls about half of all e-commerce in the United States, with its only real competitor being Walmart Inc (NYSE: WMT ).
It is one of the largest companies in the world, with a market cap of $940 billion. However, its stock is worth just $1,100 — so the company still has plenty of room to grow. AMZN stock has had a blockbuster year, with the shares soaring more than 60%. But analysts predict the company will grow earnings per share by 40% in the next five years. That should take the stock to $3,500 per share. It will still be a bargain at that point!
But this is not the only business Amazon has.
Berkshire Hathaway, Inc.
Berkshire Hathaway, Inc. (NYSE: BRK.A, NYSE: BRK.B ) is one of the best stocks to buy for your portfolio.
It was founded in 1908 by the billionaire investor Warren Buffett and his third partner, Charlie Munger. Berkshire comprises three companies: the conglomerate that owns everything from railroads to electric utilities to insurance and retail companies.
But what makes this stock great is that Buffett and Munger are changing how they do business. They are not just a conglomerate; they are a holding company that owns subsidiaries that invest in other subsidiaries that buy companies in which they already hold stock. In other words, it is essentially a holding company, and that gives Berkshire some of the best long-term potentials for growth out there.
It has been an exciting ride for the video streaming company in 2017. First, we told you that Netflix (NASDAQ: NFLX ) was undervalued and ready to power higher. Then, we said to you that this company would eventually be valued more than Disney (NYSE: DIS ). Then, we told you that Netflix would finally be worth $250.00.
You would have thought I told you they would give away free unlimited online access to online games. The market, however, clearly disagreed. But who knows? Maybe Netflix will one day become the world’s first trillion-dollar company. Perhaps it won’t. The important thing is that its assets and platform are solid. These assets are long-term growth catalysts.
This isn’t my first rodeo, though. This is my fifth year of publishing this annual list of the best stocks to buy.