October 12, 2020

5 stocks for the next 10 years — some picks are obvious, others not so much

[MarketWatch, Getty Images]

“You have to put all your money into 5 stocks and hold it for 10 years, what are you buying and why?” In Reddit’s “Stocks” community, an investor going by the name 7thAccountDontDelete posed that question to the group’s nearly 900,000 members over the weekend.

Twentieth Century Fox/Everett Collection

The answers ranged from the obvious internet chat room favorites, like Tesla TSLA , Microsoft MSFT and other Big Tech names that dominate the headlines, to some more obscure picks, such as Nio NIO and Bio-Rad BIO .

Mrmrmrj643 drew the most upvotes with his take, explaining that it is extremely rare, if it has ever even happened, that the winners of a previous decade remain the same for the following decade.

“In the 80s, big pharma did very well. In the 90s, they did not. Tech hardware did very well. Then tech hardware crashed and housing and commodities led the way,” he wrote. “For the last 10 years, software and internet media have dominated, but the kings are likely established now.”

He said he believes genetic therapy and genomics could very well deliver the next big explosive move in the stock market. “Find companies between $1 billion and $20 billion mkt cap and spread your money across them,” he said, pointing to the likes of Invitae NVTA , NanoString Technologies NSTG , Thermo Fisher Scientific TMO as his top picks.

Other areas carrying high expectations from the group for 2020 and beyond include cloud computing, clean energy, artificial intelligence and online gaming, to name just a few.

One “Stocks” member by the name of AugustinCauchy summed up the entire discussion with this word cloud of the 1,100-plus comments:

As you can see, Microsoft, Apple AAPL and Tesla led the way, with Amazon AMZN , AMD AMD , Walmart WMT and Alibaba BABA also popping up.

High-profile tech names were having a strong Monday run, as the Nasdaq Composite COMP started the week on a high note. The Dow Jones Industrial Average DJIA and S&P 500 SPX were also firmly in the green.

By Shawn Langlois

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