5 Best Long-Term Stocks to Buy in October 2021

Over the long term, equities turn out to be the best asset. No wonder, Warren Buffett, who made all his wealth through investing, advocated long-term investing. Here are the five best long-term stocks that you can buy in October.

Here we should remember that both long-term and short-term investing can be rewarding. However, the risk-reward payoffs would be different and both would appeal to different classes of investors.

1. Apple (NYSE: AAPL)

Apple is a household name, thanks to the popularity of its gadgets. Apple was the best performing FAANG stock in 2019 and 2020 but has sagged this year. However, Buffett continues to hold the stock and it is the largest holding for the conglomerate. He even regrets selling some of the Apple stock. Incidentally, in 2019, Buffett had said that he wants to buy more Apple stock but would wait for a better price. Apple stock has only risen more from those levels.

What makes Apple a good long-term stock?

Apple’s relentless focus on innovation, strong brand recall and the pivot towards services business make it a good long-term stock to buy in October. 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.

If you are looking at a long-term stock that you can hold for decades, Apple would fit the bill. The iPhone maker’s valuations also appear reasonable after the fall from the peaks.

67% of all retail investor accounts lose money when trading CFDs with this provider.

2. Berkshire Hathaway (NYSE: BRK.B)

If you are looking at diversified exposure to long-term stocks, Berkshire Hathaway would fit the bill. Berkshire Hathaway is a conglomerate with interests in industries like aircraft components, candies, insurance, railroads, and energy. The company also has a big portfolio of publicly traded securities. The stock can give you diversified exposure to the US economy and over the long-term, it should outperform the S&P 500.

Berkshire Hathaway is a good long-term stock to bet on Buffett

Berkshire Hathaway is a good long-term stock to buy and bet on Buffett’s value investing principles. While the stock underperformed in 2019 and 2020, its long-term performance is splendid and it has outperformed the markets by a wide margin. Berkshire Hathaway had a cash pile of $144.1 billion at the end of June. The cash has held steady at around the same level for the last year as Buffett hasn’t been able to find attractive investment opportunities including the “elephant-sized acquisition” that he had talked about.

Buffett is sitting on a massive cash pile

Berkshire Hathaway repurchased $6 billion worth of its shares in the second quarter of 2021, which was below the $6.6 billion that it had done in the first quarter. Over the last year, the company has scaled up the buybacks and repurchased $24.7 billion worth of its shares in 2020. Notably, the conglomerate had changed its buyback policy to a quantitative approach that gave Buffett a free hand. Previously, it repurchased shares only when the stock price was up to 120% of the book value.

Overall, if you are looking for a long-term stock to buy, Berkshire Hathaway should certainly be on your radar.

67% of all retail investor accounts lose money when trading CFDs with this provider.

3. Palantir (NYSE: PLTR)

Data analytics company Palantir looks like another good long-term investment. The outlook for data analytics looks strong and Palantir has a strong competitive position in the industry. The stock has come off its 52-week highs and the crash is an opportunity to buy it for the long term.

Palantir’s strong growth outlook makes it a good long-term stock

Palantir’s strong growth outlook makes it a good long-term stock to buy in October. The company expects annual revenue growth in excess of 30% between 2021 and 2025. The projected growth looks strong and the company might surprise on the upside in terms of growth looking at the growing demand for data analytics, both from the public and the private sector.

Palantir is also entering into several new deals which will drive long-term growth. Another underappreciated aspect of Palantir is the series of investments that it has been making in SPAC deals. These investments would also add long-term shareholder value.

67% of all retail investor accounts lose money when trading CFDs with this provider.

4. Opendoor (NYSE: OPEN)

Opendoor, which went public through a reverse merger with a Chamath Palihapitiya SPAC is another good long-term stock to buy in October. The real estate market in the US is worth $1.6 trillion annually but only 1% of buying and selling in the market happens on digital platforms. Real estate is another frontier that e-commerce is looking to penetrate and companies like Opendoor are at the forefront amid the transformation.

Opendoor is a good long-term stock to bet on digitization of the property market

The outlook for the US real estate market is reasonably strong despite lingering concerns of a bubble. Opendoor is a good long-term stock to buy and bet on the digitization of the real estate market. The stock can deliver good returns for patient investors over the long term.

67% of all retail investor accounts lose money when trading CFDs with this provider.

5. General Motors (NYSE: GM)

General Motors is a good long-term stock to buy in October. The company is transforming into an electric car company and intends to sell only zero-emission vehicles by 2035. Wall Street analysts are also constructive on the stock given its lower valuations as compared to pure-play electric vehicle companies.

GM is a good long-term stock to bet on electric cars

GM is a good long-term stock to bet on electric cars. Dan Ives of Wedbush Securities, who is a long-time Tesla bull, is also bullish on GM stock “The Detroit stalwart is in the midst of a massive turnaround that will change the GM story going forward,” said Ives.

Overall, looking at the elevated valuations of some of the EV companies, GM looks like a good long-term stock to buy at these prices.

Buy GM Stock at eToro from just $50 Now!