For most investors, a long-term buy-and-hold strategy is the best. As the saying goes, it is best to trade a lot or not at all. Given that most retail investors are buying stocks in hopes of growing their savings over a long period of time, it makes sense to pick stocks of strong companies and hold them through market ups and downs.
To cite another quote, when it comes to stocks, investors should pick right and sit tight. If a company is well-managed and the underlying fundamentals don’t change, then it makes sense to hold shares for long durations. A long timeframe being five years or more. Rather than worry about short-term gyrations, investors should keep their eyes focused on the horizon.
Here are the three best stocks to buy now for the long term: June 2024.
Netflix (NFLX)
Netflix (NASDAQ:NFLX) has set itself apart in the streaming wars and has built a nice moat around its business. The company has successfully evolved its business model, adding paid advertisements, cracking down on password sharing and pushing into sports programming and live events such as the Tom Brady roast.
Netflix stock has responded with around a 38% year-to-date gain. It is one of the few streaming companies that is profitable.
NFLX stock took at hit in late April after the company announced that it will no longer report quarterly membership numbers and average revenue per membership. Management said they are stopping the reporting of subscriber numbers as they want investors to focus instead on metrics such as revenue, operating margins and free cash flow. While investors initially balked at that approach, Netflix stock has since rebounded and risen 5% since mid-May.
Netflix is likely to continue dominating the streaming sector for the foreseeable future, making it a one of the best long-term stocks to buy now.
Berkshire Hathaway (BRK.A, BRK.B)
Warren Buffett is at it again. The CEO of Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B) recently bought an additional 2.6 million shares of Occidental Petroleum (NYSE:OXY). Buffett bought more of the stock as the share price fell to $59.48 per share. Occidental Petroleum’s stock has dropped 17% from a 52-week high of $71.18 reached in April due to slumping crude oil prices.
Berkshire Hathaway now owns 250.6 million shares of Occidental Petroleum valued at $15 billion, or 28% of the energy giant. Buffett continues to buy OXY stock whenever it falls below $60 per share.
In addition to hiking his Occidental Petroleum stake, Buffett also, through Berkshire Hathaway, controls 3% of the Treasury Bill market. Buffett has $158 billion invested in Treasury Bills, which are currently paying interest rates between 5% and 6%, depending on the time to maturity.
That Buffett continues to make savvy market moves at age 93 is incredible and the reason why Berkshire Hathaway is one of the best long-term stocks to buy. Berkshire’s class B stock has risen 23% over the last 12 months.
Costco Wholesale (COST)
Costco Wholesale (NASDAQ:COST) just reported that its sales rose 8.1% in May from a year earlier to $19.60 billion. On a month-over-month basis, Costco’s sales increased from April when the company reported 7.1% growth.
Management said the sales growth continues to be driven by e-commerce, with online sales rising 15% year-over-year in May. In-person same-store sales during May climbed 6.4% higher from a year ago.
On May 30, the warehouse club reported its latest quarterly results that showed revenue of $57.40 billion for the first three months of the year, a 9.1% annual increase. Earnings for the quarter came in at $3.78 a share, beating consensus estimates of $3.70. Costco continues to thrive in good times and bad, and its stock has gained 31% so far in 2024 and is up 63% in the last 12 months.
The 25 professional analysts who track Costco’s progress rate the stock a “strong buy,” noting its long-term outperformance.
On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.