In this article, we discuss the 10 best stocks to buy for the next 10 years.
Even as inflation data indicates that the consumer prices are the highest in the United States than they have been in nearly four decades, there are signs that the rot is slowing as energy prices inch lower, supply chains show marked improvement, and the job market booms. Last week, the US Department of Labor reported that inflation rose 6.8% in the last twelve months, the highest increase on record since 1982. However, a wave of optimism has been fueled as energy prices inch to a seven-week low and the Fed projects more cuts ahead.
According to a report by CNN, signs of improvement in the supply chain include easing congestion at ports, lower shipping costs, and deliveries speeding up. However, analysts have cautioned that even though the worst of the supply chain nightmare might be over for consumers, things may not get back to normal for months to come. To prepare for the uncertain months ahead, investors should consider pouring their money into solid growth options that will provide them with safety and security for the long-term.
Some of the top stocks to buy for the next ten years include Apple Inc. (NASDAQ:AAPL), Berkshire Hathaway Inc. (NYSE:BRK-A), and NVIDIA Corporation (NASDAQ:NVDA), among others discussed in detail below.
Our Methodology
The companies that have the potential to grow in the coming years, based on the popularity and viability of the products or services they offer amid the macro economic environment, were selected for the list.
In order to provide readers with some context for their investment choices, the business fundamentals and analyst ratings for the stocks were also considered. Hedge fund sentiment was included as a classifier as well.
The hedge fund sentiment around each stock was calculated using the data of 867 hedge funds tracked by Insider Monkey.
Best Stocks to Buy for the Next 10 Years
10. Sibanye Stillwater Limited (NYSE:SBSW)
Number of Hedge Fund Holders: 9
Sibanye Stillwater Limited (NYSE:SBSW) is a precious metals mining firm. The company is expected to grow by leaps and bounds as the demand for precious metals rises along with the demand for EVs, electronics devices, and other metal-related products. Deutsche Bank analyst Abhi Agarwal recently initiated coverage of the stock with a Buy rating and a price target of $19, noting that the firm was poised to generate attractive free cash flows in the next few years.
In late October, Sibanye Stillwater Limited (NYSE:SBSW) announced that it would be acquiring two Brazilian mines, the Santa Rita nickel mine and the Serrote copper mine, in a deal worth more than $1 billion.
Among the hedge funds being tracked by Insider Monkey, Connecticut-based investment firm AQR Capital Management is a leading shareholder in Sibanye Stillwater Limited (NYSE: SBSW) with 7.7 million shares worth more than $95 million.
Just like Apple Inc. (NASDAQ:AAPL), Berkshire Hathaway Inc. (NYSE:BRK-A), and NVIDIA Corporation (NASDAQ:NVDA), Sibanye Stillwater Limited (NYSE:SBSW) is one of the stocks that hedge funds are buying.
In its Q1 2021 investor letter, Desert Lion Capital, an asset management firm, highlighted a few stocks and Sibanye Stillwater Limited (NYSE:SBSW) was one of them. Here is what the fund said:
“Sibanye is a South African gold and platinum group metals (“PGM”) producer with mines in South Africa and the U.S. Established in 2012, it has since become one of South Africa’s largest gold producers and the largest PGM producer in the world. Sibanye also operate a PGM recycling facility and own a majority interest in DRDGOLD, a specialist in the recovery of gold and other precious metals from open pit tailings.
The investment thesis incorporates the following logic:
If central banks globally are going to continue printing money unabated, precious metals prices should rise.
The drive for cleaner and greener is accelerating. The market for platinum, palladium and rhodium is structurally attractive.
The company is generally mischaracterized. Ask around, and one will find that most people still refer to Sibanye as “a South African gold miner” with “lots of debt from that Stillwater acquisition.”
It is not quick and easy to ramp up PGM supply in response to higher demand and prices. Favorable supply-demand characteristics will likely remain favorable for longer.
Bad capital allocation decisions, corporate excesses, and resultant tarnished reputations from the previous boom period are still fresh in the minds of most mining executives. Neal Froneman has proven himself a disciplined capital allocator. His approach to capital allocation is straightforward: deploy capital at expected returns that enhances value to shareholders or distribute it via dividends and buybacks.
The company is debt-free and generating heaps of cash.
The valuation is cheap. At current metal prices, Sibanye is trading at about 5 times after-tax cash profits.
Sibanye is effectively a call option on a potential commodity super cycle. In the meantime, the value of our “option” is unlikely to deteriorate as we are rewarded with healthy dividend flows.”
9. Brookfield Renewable Partners L.P. (NYSE:BEP)
Number of Hedge Fund Holders: 17
Brookfield Renewable Partners L.P. (NYSE:BEP) owns and runs renewable power generating facilities. The company is expected to benefit as the world transitions from fossil fuels to clean energy sources in the coming years.
JPMorgan analyst Mark Strouse recently upgraded Brookfield Renewable Partners L.P. (NYSE:BEP) stock to Overweight from Neutral with a price target of $46, identifying the firm as the “best-in-class” in the ownership of renewable projects.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Select Equity Group is a leading shareholder in Brookfield Renewable Partners L.P. (NYSE:BEP) with 72,425 shares worth more than $2.6 million.
In its Q1 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Brookfield Renewable Partners L.P. (NYSE:BEP) was one of them. Here is what the fund said:
“U.S. renewables utility Brookfield Renewable was another detractor. Brookfield Renewable is a pure-play renewables operator and developer headquartered in Canada and domiciled in the U.S., focused on international hydro, solar, wind and storage technology. As more private and public institutions announce ambitious carbon reduction initiatives, Brookfield Renewable’s globally diversified, multi-technology renewables business makes it an attractive partner. Its development pipeline stands at 18,000 megawatts, providing confidence the company can meet its targeted double-digit cash flow growth through to 2025. Shares moderated amid expectations of rising bond yields, and a cool-off on the green trade.”
8. Lattice Semiconductor Corporation (NASDAQ:LSCC)
Number of Hedge Fund Holders: 19
Lattice Semiconductor Corporation (NASDAQ:LSCC) is a semiconductor manufacturer. The importance of chip makers to the world economy has been made abundantly clear this year as supply chain disruptions play havoc with prices and lead to a chain effect that creates inflation.
Lattice Semiconductor Corporation (NASDAQ:LSCC) recently announced that it had acquired Mirametrix, a software firm that provides advanced artificial intelligence solutions for computer vision applications, in an all-cash deal.
At the end of the third quarter of 2021, 19 hedge funds in the database of Insider Monkey held stakes worth $366 million in Lattice Semiconductor Corporation (NASDAQ:LSCC), down from 24 in the preceding quarter worth $306 million.
In its Q4 2020 investor letter, Artisan Partners Limited Partnership, an asset management firm, highlighted a few stocks and Lattice Semiconductor Corporation (NASDAQ:LSCC) was one of them. Here is what the fund said:
“Lattice Semiconductor is a vendor of field programmable gate array (FPGA) chips used in personal computers, 5G infrastructure, routers and switches, and servers, to name a few. The company now has a new board and management team—the current CEO joined from leading microprocessor provider Advanced Micro Devices in late 2018—which have embarked on a product-transformation journey. The company has refreshed its FPGA products in the small/low power segment of the market—making it more focused on addressing high return-on-investment use cases centered around power-efficient applications—carving itself a niche behind the two market leaders focused on high-end, Xilinx and Intel Corporation. In addition to providing FPGA chips to data centers and new 5G infrastructure— particularly compelling opportunities given these end markets are and will likely continue benefiting from strong secular tailwinds—we believe the company is well positioned to tap into lowpower/reprogrammable chips as well as industrial and automotive end markets.”
7. Varonis Systems, Inc. (NASDAQ:VRNS)
Number of Hedge Fund Holders: 27
Varonis Systems, Inc. (NASDAQ:VRNS) provides software products and services. Over the next ten years, the firm is slated to grow since one key area of spending for enterprises will be cybersecurity, a product that Varonis Systems specializes in.
Varonis Systems, Inc. (NASDAQ:VRNS) posted earnings for the third quarter on November 1, reporting earnings per share of $0.05, beating estimates by $0.03. The revenue over the period was $100 million, up 30% year-on-year.
Among the hedge funds being tracked by Insider Monkey, Massachusetts-based firm Matrix Capital Management is a leading shareholder in Varonis Systems, Inc. (NASDAQ:VRNS) with 1.2 million shares worth more than $75 million.
6. Oracle Corporation (NYSE:ORCL)
Number of Hedge Fund Holders: 56
Oracle Corporation (NYSE:ORCL) provides software solutions to enterprise clients. With plans to expand cloud solutions to 14 more regions across the world, Oracle already has a long-term growth initiative in the works that investors should monitor for the coming decade.
Cowen analyst J Derrick Wood recently raised the price target on Oracle Corporation (NYSE:ORCL) stock to $115 from $96 and kept an Outperform rating on the shares, noting that the firm would see structural growth acceleration in the coming months.
At the end of the third quarter of 2021, 56 hedge funds in the database of Insider Monkey held stakes worth $3.4 billion in Oracle Corporation (NYSE:ORCL), up from 55 in the preceding quarter worth $2.8 billion.
Alongside Apple Inc. (NASDAQ:AAPL), Berkshire Hathaway Inc. (NYSE:BRK-A), and NVIDIA Corporation (NASDAQ:NVDA), Oracle Corporation (NYSE:ORCL) is one of the stocks attracting the attention of elite investors.
Here is what Ariel Investments has to say about Oracle Corporation (NYSE:ORCL) in its Q1 2021 investor letter:
“A temporary factor might be a downturn in the high-yield bond market driving up LBO financing costs for the decline in 2021 GAAP revenue for Oracle Corporation (ORCL) due to a change in accounting methods. In all these examples, stock prices were driven well-below our calculations of intrinsic value. We invested in each company with good outcomes. Later, we will offer instances when this strategy is not successful.”
5. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 60
Tesla, Inc. (NASDAQ:TSLA) makes and sells electric vehicles and clean energy equipment. It has already established itself as the leading EV firm in the world. As the market for EVs expands to beyond $5 trillion, one of the biggest beneficiaries of this growth will be Tesla.
New Street analyst Pierre Ferragu recently raised the price target on Tesla, Inc. (NASDAQ:TSLA) stock to $1,580 from $1,298 and reiterated a Buy rating, backing the firm to deliver over 280,000 EVs in the fourth quarter.
On December 8, Tesla, Inc. (NASDAQ:TSLA) reported that it had sold 52,859 China-made vehicles in November, down 3% month-on-month but up over 340% year-on-year. The firm said it exported 21,127 China-made vehicles in November.
At the end of the third quarter of 2021, 60 hedge funds in the database of Insider Monkey held stakes worth $10 billion in Tesla, Inc. (NASDAQ:TSLA), the same as in the previous quarter worth $9 billion.
Here is what Baron Partners Fund has to say about Tesla, Inc. (NASDAQ:TSLA) in its Q1 2021 investor letter:
“Tesla, Inc. designs, manufactures, and sells fully electric vehicles, solar products, energy storage solutions, and battery cells. The stock fell during the quarter as a result of general market dynamics and a potential production slowdown due to parts shortages. A refreshed S/X and China Model Y ramp could also have a negative impact on margins in early 2021. We anticipate strong growth and improved margins driven by new production capacity, manufacturing efficiencies, localization of its manufacturing and supply chain, and maturation of Tesla’s full self-driving technology.”
4. AT&T Inc. (NYSE:T)
Number of Hedge Fund Holders: 66
AT&T Inc. (NYSE:T) is a communications and technology firm. The rollout of 5G networks across the world and the business which will be generated as a result will in large part depend on the services offered by wireless broadband providers like AT&T in the next ten years.
Citi analyst Michael Rollins has a Buy rating on AT&T Inc. (NYSE:T) stock with a price target of $29. Pascal Desroches, the chief financial officer of AT&T, recently said that the growth of the firm was sustainable and consumer demand for the services it offered was healthy going into 2022.
At the end of the third quarter of 2021, 66 hedge funds in the database of Insider Monkey held stakes worth $3.2 billion in AT&T Inc. (NYSE:T), compared to 68 in the previous quarter worth $2.8 billion.
In its Q1 2021 investor letter, Nelson Capital Management, an asset management firm, highlighted a few stocks and AT&T Inc. (NYSE:T) was one of them. Here is what the fund said:
“Nelson Capital stayed busy in the first quarter, making several adjustments within our core portfolio. In the communication services sector, we sold AT&T (tkr: T). Over the years, AT&T has made several poor acquisitions, especially in the content realm, leaving the company saddled with debt and unable to change directions.”
3. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 83
NVIDIA Corporation (NASDAQ:NVDA) is a visual computing firm. It is one of the leading chip makers in the United States. With the government planning to decrease reliance on Chinese chip companies, NVIDIA could see massive government investment in the coming years.
In mid-November, NVIDIA Corporation (NASDAQ:NVDA) stock was given a mini-boost after the firm beat market estimates on earnings per share and revenue for the third quarter, driven by gains in the data center and gaming markets.
At the end of the third quarter of 2021, 83 hedge funds in the database of Insider Monkey held stakes worth $10 billion in NVIDIA Corporation (NASDAQ:NVDA), compared to 86 in the preceding quarter worth $9 billion.
In its Q1 2021 investor letter, Vulcan Value Partners, an asset management firm, highlighted a few stocks and NVIDIA Corporation (NASDAQ:NVDA) was one of them. Here is what the fund said:
“NVIDIA Corp. is the dominant supplier of Graphics Processing Units (GPUs) worldwide. NVIDIA’s GPUs are at the intersection of a number of important computing trends including the movement to the Cloud, artificial intelligence, autonomous vehicles, edge computing, gaming, and more. We previously owned NVIDIA and sold it in the third quarter of 2020 as the price to value gap closed and our margin of safety was reduced. As with all our MVP companies, we continued to follow NVIDIA closely. Since that time, NVIDIA reported excellent results and its value has compounded rapidly. The technology selloff at the beginning of the year negatively affected the stock price while our estimate of NVIDIA’s value per share increased. This happy combination of events created a margin of safety and an opportunity to once again add NVIDIA to the portfolio.”
2. Berkshire Hathaway Inc. (NYSE:BRK-B)
Number of Hedge Fund Holders: 106
Berkshire Hathaway Inc. (NYSE:BRK-B) is a conglomerate with interests in the insurance, railroad, and consumer goods businesses. The company led by Warren Buffett has provided investors with solid returns and steady growth in the past few decades and the trend looks likely to continue for the foreseeable future.
In earnings results for the third quarter, posted in early November, Berkshire Hathaway Inc. (NYSE:BRK-B) reported that it had bought back $7.6 billion worth of shares in the third quarter, adding handsomely to the over $12 billion share buybacks in the first half of the year, to grow the cash stockpile to around $149 billion.
At the end of the third quarter of 2021, 106 hedge funds in the database of Insider Monkey held stakes worth $19 billion in Berkshire Hathaway Inc. (NYSE:BRK-B), compared to 116 in the preceding quarter worth $22 billion.
In its Q1 2021 investor letter, Vltava Fund, an asset management firm, highlighted a few stocks and Berkshire Hathaway Inc. (NYSE:BRK-B) was one of them. Here is what the fund said:
“Despite the considerable rise in stock markets over the past year, there are still many attractive opportunities. Human nature also is playing a bit into our hands. Investor crowds often chase popular stocks, hot IPOs, or mysterious SPACs and completely leave aside stocks they consider boring and not sexy enough. A typical example of this category is our long-term largest position in Berkshire Hathaway. Since we bought it for the first time, its price has nearly quadrupled and yet it remains just as undervalued today as it was at that time. Considering the current rate at which it is buying back its own shares and the amount of cash that Berkshire Hathaway has, my greatest wish as a shareholder is for the company’s share price to remain as low as possible for as long as possible.”
1. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 120
Apple Inc. (NASDAQ:AAPL) is a diversified technology company. With tech firms transitioning to artificial intelligence, virtual reality, and autonomous driving, in addition to “metaverse” ideas, Apple looks set to be a key player in the emerging industry for years to come.
Morgan Stanley analyst Katy Huberty recently raised the price target on Apple Inc. (NASDAQ:AAPL) stock to $200 from $164 and kept an Overweight rating on the shares, noting the long-term potential of a virtual reality product rumored to be launched next year.
At the end of the third quarter of 2021, 120 hedge funds in the database of Insider Monkey held stakes worth $146 billion in Apple Inc. (NASDAQ:AAPL), compared to 138 in the preceding quarter worth $146 billion.
In its Q1 2021 investor letter, Distillate Capital, an asset management firm, highlighted a few stocks and Apple Inc. (NASDAQ:AAPL) was one of them. Here is what the fund said:
“Apple is an even more notable situation and one that highlights our free cash valuation methodology and bears further discussion given its Q3 ‘20 sale from our strategy. For an extended period, Apple was extraordinarily inexpensive on a free cash flow basis and was the largest position in our strategy, exceeding 5% of the portfolio.”
You can also take a peek at 10 Companies that Benefit From Crypto Mining and 15 Best Strong Buy Stocks to Invest In.
Follow Insider Monkey on Twitter
Suggested Articles:
- 10 Best Finance Stocks that Pay Dividends
- 15 Best Casino Stocks to Invest In
- 10 Best SPACs to Invest In According to Reddit
Disclosure. None. 10 Best Stocks to Buy for the Next 10 Years is originally published on Insider Monkey.
