In this article, we discuss the 10 best stocks to buy for the next 10 years. If you want to skip our detailed analysis of these stocks, go directly to the 5 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.”
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Disclosure. None. 10 Best Stocks to Buy for the Next 10 Years is originally published on Insider Monkey.
