Looking for the Best Long-Term Investing Stocks in 2022? Top 4 Picks

Apple, Meta Platforms, Tilray, and SoFi look like four of the best long-term investing stocks in 2022 as markets plunge from record highs.

Mohit Oberoi, CFA - Author

Feb. 4 2022, Published 9:59 a.m. ET

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After three years of stellar growth, U.S. stock markets are looking weak in 2022. Over the last two years, traders have made a lot of money amid the steep rise in growth stocks. However, as markets turn volatile and highly-priced growth stocks plunge, the virtues of long-term investing are back in limelight. What are the best long-term investing stocks right now?

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Most investors including the legendary Warren Buffett have made their wealth through long-term investing. Here are some of the stocks that look best for long-term investing in 2022.

There's a difference between timing the market and time in the market.

As the old saying goes, timing the market is more important than time in the market. To get a sense of how compounding works in the long term, it would be worthwhile to dive into Berkshire Hathaway’s annual report. The stock has risen at a CAGR of 20 percent between 1965 and 2020, which is twice that of the S&P 500.

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In absolute terms, Berkshire Hathaway stock has risen 2,810,526 percent over the period versus 23,454 percent returns of the S&P 500, including the dividends.

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What are the four best long-term investing stocks to buy in 2022?

U.S. stocks have come off their highs and some of the companies have started to look attractive. Here are the four stocks that look like good buys for the long term.

  • Meta Platforms
  • Apple
  • SoFi
  • Tilray

While three of these are tech companies, Tilray is a cannabis company.

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Meta Platforms and Apple are the best FAANG stocks for the long term.

In the FAANG space, Meta Platforms and Apple are the best stocks to invest in for the long term. Facebook owner Meta Platforms is trading near its 52-week lows after its fourth-quarter 2021 earnings and first-quarter guidance spooked investors.

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The company expects Apple’s iPhone privacy rules to shave off nearly $10 billion from its annual revenues. Also, its earnings have been impacted by inflationary pressures and a higher outlay towards building the metaverse.

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However, Meta Platforms has a lead in the social media industry and over the long term, metaverse could be a key growth driver. The stock’s valuations look reasonable at these prices, which makes it the best long-term stock to buy.

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Warren Buffett loves Apple stock.

Apple is the largest holding of Berkshire Hathaway. Over the long term, the company would benefit from the increasing share of the high-margin services business. Its installed device base has surpassed 1.8 billion, which opens up multiple cross-sell opportunities for Apple. Its expected entry into electric and autonomous vehicles would be another long-term driver.

SoFi looks like a good long-term investment after the bank charter.

SoFi has received the long-awaited bank charter, which would help it expand its margins. The company is a diversified fintech offering multiple services like student loans, stock trading, crypto, insurance, and credit cards.

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The company’s student loan business is expected to gain momentum once the moratorium on student loan payment is lifted. After the recent crash, SoFi’s valuations look quite attractive, especially for long-term investors.

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Tilray is a play on cannabis legalization.

Cannabis stocks have tumbled over the last year as legalization hopes have faded. However, over the long term, recreational marijuana should eventually get decriminalized in the U.S., which would help channel illegal cannabis sales to the legal market.

Tilray has significant medical cannabis operations. It's also well-diversified globally with significant operations in Europe. If you're willing to bet on cannabis legalization with a quality name, Tilray looks like a good option.


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