In this article, we will look at the 12 Best Long Term Stocks to Invest In According to Billionaires.
On March 17, Ed Yardeni, Yardeni Research president, appeared on CNBC’s ‘Squawk Box’ to talk about the impact of the Iran war, the latest market trends, and the state of the economy.
He says he is more risk-averse, at least for the near-term, and stated that everybody on Wall Street is trying to be a military expert in this fog of war, when actually, even the military experts cannot accurately predict where this is going. He is encouraged by the fact that tankers are getting it through the Persian Gulf, as a majority of the oil that passes through the Strait of Hormuz goes to China and India, and that is a big chunk of global demand.
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Yardeni further said that he has come to the conclusion over the past few days, and things are moving pretty quickly, that the initial number everyone threw out that this was going to shut out 20 million barrels per day, or 20% of the global consumption, has changed. The initial numbers were horrible, and the market jumped up to around $120 per barrel a Saturday ago. His more realistic estimate for now is something around the lines of 10 million barrels per day. Yardeni also believes that the Iran War could result in a 10%-15% market correction.
With these broader market trends in view, let’s look at the best long term stocks to invest in according to billionaires.
Our Methodology
We sifted through financial media reports and ETFs tracking blue-chip and high-quality stocks to find the best long-term stocks with stable fundamentals. We then chose the top 12 with the highest number of billionaire investors from Insider Monkey’s database of billionaire holdings. These stocks are also popular among elite hedge funds.
Note: All data was recorded on March 18.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
12 Best Long Term Stocks to Invest In According to Billionaires
12. Eli Lilly and Company (NYSE:LLY)
Eli Lilly and Company (NYSE:LLY) is one of the best long term stocks to invest in according to billionaires. Eli Lilly and Company (NYSE:LLY) announced on March 16 positive topline results from the Phase 3 ADorable-1 trial that was evaluating the safety and efficacy of EBGLYSS in pediatric patients with moderate-to-severe atopic dermatitis. Management stated that EBGLYSS met the primary and key secondary endpoints at Week 16, improving disease severity while delivering skin clearance and relief from persistent itch. Eli Lilly and Company (NYSE:LLY) has plans to submit the data to U.S. and global regulators for a potential label update.
In a separate development, Eli Lilly and Company (NYSE:LLY) was downgraded to Reduce from Hold by HSBC on March 17, with the firm bringing the price target on the stock down to $850 from $1,070. The firm told investors in a research note that it believes expectations for the total addressable market for obesity are elevated at over $150 billion, and the market is likely to be in the range of $80 billion -$120 billion by 2032, with price competition “ likely to be significant”.
Eli Lilly and Company (NYSE:LLY) develops, manufactures, discovers, and sells pharmaceutical products. These products span oncology, diabetes, immunology, neuroscience, and other therapies.
11. McDonald’s Corporation (NYSE:MCD)
McDonald’s Corporation (NYSE:MCD) is one of the best long term stocks to invest in according to billionaires. Reuters reported on March 11 that McDonald’s Corporation (NYSE:MCD) is set to introduce new menu items priced at $3 or less, as well as with $4 breakfast meal deals in the U.S., starting in April, according to a report by the Wall Street Journal. The company aims at attracting diners affected by economic concerns, with Reuters adding that the company is “sharpening” its focus on affordability, with consumers becoming increasingly price-conscious. Similar efforts are being undertaken by its rivals, such as Burger King, which is also offering more economical menu options.
In a separate development, McDonald’s Corporation (NYSE:MCD) received a rating update from Tigress Financial on March 6, with the firm lifting the price target on the stock to $385 from $360. The firm reiterated a Buy rating on the shares and cited the company’s “powerful global brand”, AI-driven efficiencies, rapid unit expansion, and asset-light franchise model, adding that its raised 12-month target, combined with dividends, exhibits a potential total return of 20% from current levels.
McDonald’s Corporation (NYSE:MCD) is a food service retailer that operates and franchises restaurants. The company’s operations are divided into the following segments: United States, International Operated Markets, and International Developmental Licensed Markets & Corporate.
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