5 Best Sectors To Invest In Long-Term

1. Technology

Number of Companies: 25

Research and Markets forecasts the global technology market to increase from $8179.48 billion in 2022 to $8852.41 billion in 2023, with a compound annual growth rate (CAGR) of 8.2%. The market is projected to further expand to $11995.97 billion by 2027, with a CAGR of 7.9% during that period. Technology sector is one of the best investments for the long-term. 

Microsoft Corporation (NASDAQ:MSFT) is the preferred technology stock among the 943 hedge funds tracked by Insider Monkey in Q1 2023. On July 25, Microsoft Corporation (NASDAQ:MSFT) announced its financial results for the quarter ended June 30, 2023. The company posted an EPS of $2.69 and a revenue of $56.2 billion, exceeding Wall Street estimates by $0.14 and $710 million, respectively. 

According to Insider Monkey’s first quarter database, 289 hedge funds were bullish on Microsoft Corporation (NASDAQ:MSFT), compared to 259 funds in the prior quarter. Bill & Melinda Gates Foundation Trust is the largest stakeholder of the company, with 39.2 million shares worth $11.3 billion. 

L1 Capital International Fund made the following comment about Microsoft Corporation (NASDAQ:MSFT) in its second quarter 2023 investor letter:

“Microsoft Corporation (NASDAQ:MSFT) is a clear and substantial beneficiary of AI – not only through its investment in OpenAI/ChatGPT but through the incorporation of AI into core Microsoft products and services, and increasingly through Azure (Microsoft’s cloud computing business) providing ‘AI-as-a-service’. At this stage we don’t know what the long-term financial benefits of AI will be to Microsoft, but we have confidence that it will be meaningful, that barriers to competition are increasing and that Microsoft is worth more today than it was 12 months ago. That said, Microsoft’s share price has increased 33% (in U.S. dollars) over the past year, and we no longer consider the company to be undervalued in our central base case. We have started to trim our investment in Microsoft, although it remains one of the Fund’s largest positions.”

Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily enewsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also check out 10 Best August Dividend Stocks To Buy and 10 Stocks That Will Make You Rich in 2023.