5 Best Long-Term Growth Stocks To Invest In

2. Alphabet Inc. (NASDAQ:GOOGL)

Number of Hedge Fund Holders: 191

Alphabet Inc. (NASDAQ:GOOGL) is a Big tech company involved in the disruptive fields of AI, autonomous driving, advancing healthcare solutions, and quantum computing through its various investments.

Alphabet Inc. (NASDAQ:GOOGL) is already an established player in the digital advertising industry and consumer products segment like smartphones and tablets. The company has now ventured into smartwatches following the launch of the Google Pixel Watch in October 2022. Analysts think Alphabet Inc. (NASDAQ:GOOGL) is amongst the best long-term stocks as the company is in a strong position to leverage the long-term digital advertising trend and make a successful shift toward cloud computing. During the economic downturn, Alphabet Inc. (NASDAQ:GOOGL) has shown outstanding capital allocation and is pushing for a further 20% improvement in operational efficiency through cost-cutting measures.

Here’s what Farrer Wealth Advisors said about Alphabet Inc. (NASDAQ:GOOGL) in its Q1 2022 investor letter:

“Alphabet: We won’t waste much time trying to explain to our clients why Alphabet is such a phenomenal business, we believe that is quite self-evident. The better explanation is why we never bought Alphabet before. The reason was a personal bias we held based on three beliefs (which we now believe to be incorrect)

Growth in YouTube would stall as the increased ad-load would turn-off viewers (the double ad-load at the beginning of videos for example). Consumers will focus on discovery rather than search to purchase new items. For example – using Instagram/TikTok to decide what new clothes to buy instead of ‘googling’ for clothes. Other Bets: In general, we felt that capital spent on “Other Bets” has been a bit wasteful with the segment earning just around $3.1bn in revenue versus nearly $21bn in operating losses over the last five years…” (Click here to see the full text)