5 Best Sectors To Invest In Long-Term

In this article, we discuss 5 best sectors to invest in the long-term. If you want to see more sectors popular among smart investors, head directly to 10 Best Sectors To Invest In Long-Term. 

5. Communication Services

Number of Companies: 10

Communication Services is one of the best sectors to invest in for the long-term. According to Allied Market Research, the size of the global telecommunication services market was $1602.5 billion in 2021, and it is estimated to reach $2556.2 billion by 2031, with a projected compound annual growth rate (CAGR) of 5.1% from 2022 to 2031. 

Meta Platforms, Inc. (NASDAQ:META) is a favorite communication services stock among hedge funds. On August 1, the company announced that it plans to introduce AI-powered chatbots with distinct personalities on its social media platforms, starting from September. The chatbots will be designed as different characters, including an Abraham Lincoln-like talker and a surfer-style travel advisor, aimed at enhancing user engagement. 

According to Insider Monkey’s first quarter database, Meta Platforms, Inc. (NASDAQ:META) was found in 220 hedge fund portfolios, compared to 194 in the prior quarter. Philippe Laffont’s Coatue Management is a prominent stakeholder of the company, with 8 million shares worth $1.70 billion. 

Wedgewood Partners Large Cap Focused Growth Fund made the following comment about Meta Platforms, Inc. (NASDAQ:META) in its second quarter 2023 investor letter:

“Meta Platforms, Inc. (NASDAQ:META) was the top contributor to performance during the quarter. The Company managed to grow adjusted expenses more in line with revenue growth, which helped re-establish management’s credibility with investors with respect to future profitability and returns. The Company also guided to accelerated revenue growth as product investments are beginning to bear fruit relative to easier comparisons from a year ago. Meta has been at the forefront of investing in some of the most valuable artificial intelligence IP extant, particularly with its ranking and recommendation systems that are in use across its suite of user-facing products and advertiser-facing tools. Despite the recent frenzy of attention around “Gen-AI,” Meta has been researching and developing generative-AI tools for years, so we don’t expect to see a large ramp up in expenses around this phenomenon. Although we trimmed Meta as positions reached our maximum weighting, it ended the quarter as our largest holding.”