Here are 10 stocks that could boost your portfolio in 2023 and beyond. Many investors don’t know where to start with the thousands of publicly traded companies, ETFs, and mutual funds available. With the recent market downturn, especially for growth stocks, many stocks are trading for much less than they did six or 12 months ago. How should you invest in 2023? Although I don’t have a crystal ball, I’ve done the next best thing, In this article, I’ll recommend 10 stocks for long-term investors in 2022.
My list of the 10 best stocks to buy now and hold for the long term, from smallest to largest market cap, is below.
Etsy
Before COVID-19, Etsy was growing by connecting crafty makers with customers looking for something unique. The Pandemic boosted e-commerce and Etsy grew faster than overall e-commerce, skyrocketing. Etsy’s growth has been impressive across all product categories, not just face masks. Etsy’s marketplace sales volume increased 141% over pre-pandemic levels in Q2 2022.
Powerful platforms grab my attention throughout this list, Etsy’s one, and few e-commerce companies that can beat Amazon. Etsy survived Amazon’s handmade goods platform and won, this could be the start of long-term growth. Etsy’s market opportunity is in the hundreds of billions of dollars, and it has just begun. With the stock falling in the recent growth stock downturn, patient long-term investors should take a closer look.
Pinterest is a positive oasis in a depressing, divisive social media landscape, that’s because Pinterest is about ideas. Pinterest is for things, not people and Pinterest gives people visual inspiration for their projects, such as building a deck or baking a cake. Pinterest’s user base shrank as pandemic restrictions were lifted, contributing to its 2022 market decline. According to the company’s second-quarter results, the user base has stabilized.
Pinterest has a huge opportunity to monetize its users, especially as it moves away from its traditional ad-focused model and incorporates e-commerce. It’s smart to pivot. Pinterest is a place to find things to buy, and it recently hired e-commerce veteran Bill Ready as its new CEO. When people are already there for suggestions, advertising, lead generation, and product placement are seamless. Internationally, where 80% of its users are but only a fraction of its revenue, the monetization potential is huge.
Sea Limited
Sea Limited is a Southeast Asian powerhouse. Garena is the company’s largest digital gaming platform, but Shopee and SeaMoney are its most promising growth drivers. Garena’s revenue declined in the second quarter of 2022, but Shopee’s grew 51% and SeaMoney’s grew 214%.
Sea Limited has three high-potential businesses: Garena, Shopee, and SeaMoney. It’s quickly becoming a leader in all three in its home region and other key markets around the world, including Latin America. Despite its two early-stage businesses, I consider it one of the best long-term international stock investments. When people are already there for suggestions, advertising, lead generation, and product placement are seamless. Internationally, where 80% of its users are but only a fraction of its revenue, the monetization potential is huge.
Shopify
Shopify allows businesses of all sizes to sell online, with a focus on small businesses. Shopify offers a $29-per-month subscription plan for businesses and many related services. Shopify’s “one-stop shop” e-commerce approach makes it a powerhouse. It now has more e-commerce sales than Amazon. Shopify may still be young. The platform’s $5 billion in revenue over the past four quarters is just a fraction of its estimated $153 billion (and growing) market opportunity as more retailers shift to online sales.
E-commerce represents less than 15% of U.S. retail sales. Shopify is a clear choice for the best stocks to buy in 2022, with shares down sharply in the recent market downturn due to recession fears and slowing consumer spending.
Block
Block, formerly Square, is a massive financial ecosystem for merchants and individuals. Block processed $188 billion in merchant payments over the past four quarters and offers a suite of business services.
Block’s Cash App has 47 million users and offers P2P money transfers, direct deposits, debit cards, stock trading, and more. Block bought music app Tidal and buy-now, pay-later platform Afterpay. The business should grow as its ecosystem evolves.
MercadoLibre
MercadoLibre is one of my favorite long-term stock investments, and for good reason. The company’s e-commerce marketplace is popular in Brazil and Argentina. MercadoLibre offers much more. It operates Mercado Pago, Mercado Envios, a business lending platform, and more. Mercado Pago processed more than $120 billion in annualized volume, with two-thirds coming from outside the company’s e-commerce platform. Both are expanding. Mercado Credito is a young, fast-growing lending business. Mercado Credito’s loan balances have grown to $2.7 billion in the past year.
MercadoLibre is the Amazon, PayPal, Square, Shopify, and more of Latin America, and it’s still growing. Despite leading in Brazil, Argentina, and more, MercadoLibre does a fraction of Amazon’s merchandise and PayPal’s payment volume. MercadoLibre could be a long-term beneficiary of e-commerce and cashless payments.
Intuitive Surgical
Robot-assisted surgery beats humans’ shaky hands, since I first noticed Intuitive Surgical stock in 2005, my general thesis hasn’t changed, the da Vinci surgical system is the market leader, and its “razors and blades” model generates recurring revenue.
Intuitive Surgical is dominant in its space and has room to grow as its surgical systems are adopted and supported procedures increase. This is especially true in international markets, where robot-assisted surgery could be a growth catalyst for decades.
Disney
House of Mouse is a portfolio’s all-terrain tires. The pandemic hurt Disney’s theme park and movie businesses but helped its streaming service, Disney+. Disney+ has over 150 million subscribers less than three years after launching, while its initial five-year goal was 60-90 million. Disney’s theme parks and movies are gaining popularity in 2022. Disney’s parks now have higher revenue than pre-pandemic times due to higher per-guest spending. Disney+ is a huge success, and the company is expanding it and Hulu and ESPN+.
Disney is a reopening play and pandemic-fueled growth business. Marvel Cinematic Universe/Star Wars/ESPN/Pixar/Disney intellectual property and cash-machine theme park business make it the safest stock on this list. As new business areas develop, it has huge growth potential.
Berkshire Hathaway
This is the boring value pick of this list of growth stocks, Berkshire Hathaway owns 60 subsidiaries, including GEICO, Duracell, and Dairy Queen. Berkshire owns a $340 billion portfolio of common stocks, including stakes in Apple (NASDAQ:AAPL), Bank of America (NYSE:BAC), Chevron (NYSE:CVX), American Express (NYSE:AXP), and Coca-Cola (NYSE:KO). Many of these companies were handpicked by legendary investor Warren Buffett, who at age 92 still manages Berkshire’s investments.
Buffett bears say he’s lost his fastball, but Berkshire continues to beat the market despite its size. Berkshire won’t produce the 3,600,000% return it has since Buffett took the helm, but it should continue to outperform the S&P 500. Berkshire would be the world’s largest actively managed mutual fund. Buffett will leave soon, Berkshire is his legacy, and he’s been stress-proofing it for years to ensure its long-term health. He and partner Charlie Munger have regularly repurchased shares. That’s good for long-term investors like us.
Amazon
Most people don’t need Amazon’s elevator pitch. Amazon leads the U.S. e-commerce market with $600 billion in gross merchandise sales last year. Its Amazon Web Services cloud platform is also a market leader.
You may not realize the growth potential. E-commerce represents less than 15% of U.S. retail sales. Cloud computing is also young. Amazon also has potential in healthcare, grocery stores, and neighborhood markets.
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