5 Best Long-Term Stocks to Buy in December 2021

Both long-term investing and short-term trading are sound investing strategies as long as it fits in your overall investment objective and matches your profile. Usually, long-term investors are not too bothered by short-term volatility in markets.

According to Warren Buffett, he invests on the premise that markets might be closed for a decade. While day trading has its own charm, some investors opt for long-term investing. Here are the five best stocks that you can buy in December and hold for years.

1. Block (NYSE: SQ)

Fintech giant Square recently changed its name to Block. The company is a play on the fintech industry, which is among the most promising investing themes for the next decade. Block has been diversifying its business to focus on cryptos. The company has also invested in bitcoin. Block CFO Amrita Ahuja believes that there is a $100 billion TAM (total addressable market) for the company’s Seller App and a $60 billion TAM for its Cash App. Currently, Block only has a 2-3% share of these markets

Block is a good fintech stock for the long-term

If you are looking to buy a fintech stock for the long-term Block looks a good option, with Jefferies terming it as a “must own stock.” Block has also diversified into the BNPL (buy-now-pay-later) market and earlier this year it announced the acquisition of Australian BNPL company Afterpay.

Also, Jack Dorsey has quit as Twitter CEO which will help him focus on Block. After Dorsey quit Twitter, Bank of America upgraded Block stock. “We are also incrementally encouraged by yesterday’s announcement that Jack Dorsey is stepping down as CEO of TWTR, meaning he can devote all of his time to being CEO at SQ, which we view as good timing with the Afterpay integration looming,” it said in its note.

Block stock has come off its 2021 highs. However, if you are a long-term investor, the current price levels look quite attractive.

68% of all retail investor accounts lose money when trading CFDs with this provider.

2. Jabil (NYSE: JBL)

The electric vehicle (EV) industry is among the most exciting long-term investment opportunities. However, the valuations of some of the EV stocks might appear bloated to some investors. Meanwhile, Goldman Sachs finds Jabil as a good proxy way to play the EV transition as the company has good exposure to EV OEMs like Tesla and Rivian.

Jabil is a long-term play on the EV industry

Companies like Jabil look a good way to play the EV transition story. Goldman Sachs expects that this year a mid-single-digit percentage of Jabil’s revenue would come from EV companies. This would mean that Jabil has high exposure to EV companies as compared to other companies in the EV supply ecosystem.

Jabil stock is outperforming the markets and has hit a new 52-week high today. However, if you are looking to play the EV story through an ancillary play, Jabil appears a good long-term investment.

68% of all retail investor accounts lose money when trading CFDs with this provider.

3. Apple (NYSE: AAPL)

When thinking about long-term investments it’s hard to miss Apple stock. The company is the biggest holding for Berkshire Hathaway whose chairman Warren Buffet is known for his value investments. Apple stock is trading near its 52-week highs but still looks like a good long-term investment. Wall Street analysts have also been turning bullish on the stock as concerns over supply chain shortages are now fading.

Apple stock is a long term play on innovation and EVs

Apple’s relentless focus on innovation, strong brand recall, and pivot towards services business make it a good long-term investment. Also, the company would also benefit from the digital transformation and the pivot to 5G. Finally, Apple’s foray into electric vehicles would add long-term shareholder value.

Even Tesla bulls like Gene Munster and Adam Jonas believe that Apple’s entry into the EV industry would be a risk for Tesla. Notably, the total addressable market for mobility is much higher than that of Apple’s current target market. If the company comes up with an iPhone-like proposition in the EV industry, it could rise even higher in the long term

If you are looking at a long-term stock that you can hold for decades, Apple would fit the bill.

68% of all retail investor accounts lose money when trading CFDs with this provider.

4. Meta Platforms (NYSE: MVRS)

Met Platforms, which was previously known as Facebook looks like another good long-term stock to buy for the long-term. The Mark Zuckerberg-led company has a strong moat and network effect in the social media industry even as it, like other Big Tech companies, is accused of monopoly. Now, after having established itself in the social media industry, the company is now betting on metaverse which could be a long-term driver for the stock.

Wall Street analysts have also been turning bullish

Wall Street analysts have also been getting bullish on Meta stock as the controversy over the whistleblower saga has now somewhat withered away. In terms of valuation, the stock is the cheapest among FAANG peers. While some of the FAANG stocks have seen an expansion of trading multiples in Facebook’s case the valuation multiples have come down.

Overall, if you are looking to hold a tech stock for the long-term and bet on metaverse, Meta Platform stock should be on your radar.

68% of all retail investor accounts lose money when trading CFDs with this provider.

5. ARK Innovation ETF (NYSE: ARKK)

ETF investing has become very popular and total ETF assets are now over $7 trillion. ETFs can be a good investing strategy especially for investors who lack the time or analytical skills to pick individual stocks. Their low expense ratio makes them an attractive investment option. If you are looking to invest in an ETF for the long-term, Cathie Wood’s flagship ARK Innovation ETF, which counts Tesla as the biggest holding looks a good bet.

ARK is a good ETF for the long-term

To be sure Wood’s investing style has been under pressure this year and that funds are underperforming the markets. In ARKK also, most of the holdings are in a bear market territory and have fallen over 20% from their peaks. The ETF is also down sharply from its 52-week highs.

However, the kind of companies that Wood invests in, are long-term winners. If you are looking to buy an ETF for the long-term that gives you exposure to a portfolio of innovative and futuristic companies, ARKK should definitely be on your radar.

Buy ARKK ETF at eToro from just $50 Now!