You can invest in literally thousands of publicly traded companies, not to mention the many exchange-traded funds (ETFs) and mutual funds you can buy. So, it’s no surprise that many investors don’t know where to start. And given the recent market downturn, especially growth stocks, many stocks are trading significantly cheaper than they were six months ago or even a year ago.
But what are the best stocks to buy in 2023? We don’t have a crystal ball to tell you which stocks will give you the best returns, but we tried to come up with the next best thing. We move on to a list of the top 10 stocks to buy now and hold for the long term, from lowest to highest market cap, followed by an overview of each stock’s buying paper.
Table of Contents
- Etsy
- Block
- Shopify
- Realty Income
- MercadoLibre
- Intuitive Surgical
- Disney
- Berkshire Hathaway
- Amazon
- Final Remarks
- Similar Articles
Etsy
Before the COVID-19 pandemic hit, Etsy thrived on matching smart makers with customers looking for something different from mainstream eCommerce fares. E-commerce got a big boost during the pandemic. But Etsy really picked up steam and grew more than twice as fast as the rate of overall e-commerce.
Etsy is a natural choice when people wanted unique face masks, but the growth across product categories has been remarkable. In the second quarter of 2022, Etsy’s marketplace sales volume increased 141% from comparable pre-pandemic levels.
Few e-commerce companies have survived competing with Amazon. Etsy didn’t just survive when Amazon launched its own platform for handmade goods. But this could just be the beginning of a great long-term growth story.
With its platform and brand power, Etsy’s market opportunity is worth hundreds of billions of dollars, but we’re only just scratching the surface. Also, the recent sell-off in growth stocks has seen stock prices drop significantly, so now might be a good time for patient long-term investors to take a closer look.
Pinterest is an oasis of positivity in an increasingly depressing and fragmented social media landscape. This comes in part from the idea that Pinterest is all about.
People come to Pinterest to focus on things and not other people. Whether it’s building the deck of your dreams, baking your child’s birthday cake, or updating your wardrobe, Pinterest provides visual inspiration for what people want to do.
Pinterest has been crushed by its 2022 market decline. This is largely due to the user base shrinking a bit as restrictions due to the pandemic have been lifted worldwide. However, according to the company’s recent results, the user base appears to be stable for the time being. Also, Pinterest has only a fraction of its Facebook user base, so there is still plenty of potential for long-term user growth.
The most exciting thing from a long-term investor’s perspective is how Pinterest will move forward when it comes to user monetization, especially as the company moves away from a traditional advertising-centric model and seeks to find ways to integrate e-commerce into its business.
Pinterest is where people search for things to buy, and it recently hired e-commerce veteran Bill Ready as its new CEO to accelerate that swing. It may be a while before the company really realizes the potential of e-commerce, but long-term investors could be well rewarded.
It’s pretty easy to imagine how seamless advertising, lead generation, and product placement would be if people were already there asking for suggestions.
Block
Block, formerly known as Square, has grown from a niche payment processing hardware company into a large financial ecosystem for merchants and individuals. On the merchant side, Block has processed about $188 billion in payments over the past four quarters and provided a variety of related services to businesses. On the personal side, Block features a Cash App with 47 million users that allows for person-to-person money transfers, direct deposits, debit cards, stocks, and Bitcoin (CRYPTO: BTC), etc.
Block also recently acquired the music app Tidal and the platform Afterpay. As the ecosystem evolves, the company should get stronger and stronger. Block ranks among one of the top 10 stocks to buy right now, as the long-term trend towards cashless payment adoption still has a long way to go and many potential growth areas need to follow.
Shopify
Shopify operates a platform that enables businesses of all sizes to sell their products online, with a particular focus on empowering small businesses and growing them by building long-term relationships. is placed. Shopify offers businesses a subscription starting at $29/month and also offers a number of adjacent services to help your business run smoothly, including Payment Processing Solutions and Logistics.
Shopify’s “one-stop-shop” approach to e-commerce is what makes Shopify so powerful. Today, more e-commerce sales flow through the ecosystem than any company other than Amazon. However, Shopify may be just getting started. The platform has generated just over $5 billion in revenue over the past four quarters, representing an estimated $153 billion (and growing) market opportunity as more retailers shift their focus to online sales. That’s just the beginning.
E-commerce is still in its relatively early stages, making up less than 15% of US retail sales. Shopify also has its second-largest market share, leading many of the world’s largest retailers by a large margin. Shopify appears to be the clear choice as the best stock to buy in 2023, as stocks have plummeted in the recent market downturn due to recession fears and signs of slowing consumer spending.
Realty Income
There is a solid case for finding more balanced stocks for long-term investors than real estate income when it comes to value, growth, and income.
For those of you who don’t know, Realty Income is a real estate investment trust (REIT) that primarily invests in single-family, single-tenant retail properties. Walgreens (NASDAQ: WBA), Dollar General (NYSE: DG), and FedEx (NYSE: FDX) are just a few examples of top tenants. Realty Income has more than 11,000 properties in the US and Europe, most of which are more recession-proof and less susceptible to e-commerce disruption than many other retailers. Additionally, Realty Income’s triple net lease structure helps generate a steady and predictable income stream.
Since listing on the New York Stock Exchange in 1994, Realty Income has delivered an annualized total return of 15.1%, comfortably beating the S&P 500. We have paid out over 600 consecutive monthly dividends (currently yielding about 5% per annum) and increased our dividend by 116x without ever cutting it.
MercadoLibre
One of the favorite long-term stock investments on the market, MercadoLibre is often referred to as the Amazon of Latin America, and for good reason. The company operates e-commerce marketplaces with a dominant presence in some of the region’s most populous countries, including Brazil and Argentina.
However, MercadoLibre has much more. It operates a fast-growing payments platform known as Mercado Pago, a logistics service called Mercado Envios, a lending platform for businesses, and more. Marketplace saw $8.6 billion in commodity trading volume in the second quarter of 2022, while Mercado Pago handles more than $120 billion in annual trading volume, about two-thirds of which comes from the company’s e-commerce platform. It was from outside. Both are growing fast. And let’s not forget Mercado Credito, the company’s fledgling but rapidly growing lending business. Mercado Credito has more than tripled in the past year alone and has $2.7 billion in outstanding loans.
The best part is that all of these companies are in relatively early stages. MercadoLibre’s product volume is about 6% of Amazon’s, and Mercado Pago’s payment volume is PayPal (NASDAQ: PYPL) is processed. So, there are a lot of runways ahead.
MercadoLibre is more than just a Latin American Amazon. Amazon, PayPal, Square, Shopify, and more are all rolled into one and are in the early stages of growth. As the Latin American e-commerce and fintech landscape continues to evolve over the next few years, MercadoLibre could be a major beneficiary in the long term.
Intuitive Surgical
Robot-assisted surgery beats people’s trembling hands. The da Vinci Surgical System is the clear market leader and the ‘razor and blade’ model helps generate a recurring revenue stream as the system is used to perform procedures.
Intuitive Surgical dominates its field and has plenty of room for growth as its surgical systems become more popular and the number of surgeries supported increases. This is especially true in many international markets where the emergence of robotic surgery could catalyze the long-term growth of this great business over the coming decades.
Disney
House of Mouse is the all-weather tire in the portfolio. While the pandemic has hit the theme park and movie businesses hard, it has helped the Disney+ streaming service grow into a powerhouse years sooner than Disney expected. In fact, Disney+ has amassed over 150 million subscribers in less than three years after its launch, compared to the company’s original five-year goal of 60-90 million.
In 2022, demand for Disney theme parks and movies will recover like never before. In fact, revenues at Disney’s parks are higher than in comparable pre-pandemic periods due to initiatives that have increased spending per guest. On the streaming side, Disney+ is a big hit, and the company is focusing on growing this and its other streaming platforms, Hulu and ESPN+.
Disney may even be the ultimate combination of game relaunch and pandemic-driven growth business. Its amazing intellectual property portfolio (Marvel Cinematic Universe/Star Wars/ESPN/Pixar/Disney) and ATM theme park business give it a margin of safety that makes it probably the safest stock on this list.
Berkshire Hathaway
While most of this list consists of growth stocks, this is a relatively dull value pick for the group. Berkshire Hathaway includes familiar names like GEICO, Duracell, and Dairy Queen, to name a few. which owns approximately 60 subsidiary collections. Berkshire also has Apple (NASDAQ: AAPL), Bank of America (NYSE: BAC), Chevron (NYSE: CVX), American Express (NYSE: AXP), and Coca-Cola (NYSE: KO), as well as dozens of other companies positions, many of which were personally hand-picked by legendary investor Warren Buffett, who, at his 92 years old, is still It manages most of Berkshire’s investments.
Buffett’s bears will say they’ve lost their fastball, but Berkshire has continued to produce above-average returns most years despite its massive size: 3,600,000% since Berkshire took command but there’s no reason to think it won’t top the S&P 500 any time soon.
Buffett won’t be on top forever. But Berkshire is his legacy, and he’s taken it easy for years to make sure Berkshire is in solid shape even after he’s no longer running the business.
Amazon
For most people, Amazon doesn’t need an elevator pitch. The company has a commanding lead in the U.S. e-commerce market, with total merchandise sales of about $600 billion last year, and its Amazon Web Services cloud platform is also a market leader.
But there is more potential for growth than you think. There is still a long way to go in maximizing e-commerce adoption. It accounts for less than 15% of all US retail sales. The cloud industry is also relatively young. Amazon also has great potential in other areas such as healthcare, grocery, and convenience stores.
Final Remarks
To start your investment journey (or want a sanity check), read our guide to investing in stocks. We cover all the basics, from getting started to deciding on a personal investment strategy, to deciding how much to invest in stocks.
Stocks listed in this article are good to buy but they may not be the best choice for investors who don’t have an established and diversified portfolio yet. Indeed, we think the 10 stocks reviewed here are some of the best long-term stock investments you can buy right now. However, it is wise to start with the ones that look attractive and ignore the ones that don’t.
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