In this article, we discuss the 5 best stocks to buy for the next 10 years. If you want to read our detailed analysis of these stocks, go directly to the 10 Best Stocks to Buy for the Next 10 Years.
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.”
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