If you could put your money into just 5 stocks to hold for the next 10 years, which stocks would you choose? Reddit users discussed their top picks this week. Here’s what they said.
As the coronavirus continues to wreak havoc on the global economy and keep people at home, many investors have been looking to the internet for investment ideas with more time than ever to manage their portfolios or even day trade.
One corner of the web that’s growing in popularity for investment advice and stock picks is Reddit.
Since early March when the market was in free-fall, searches for “reddit stocks” have nearly tripled, garnering over 65,000 searches month-over-month, according to Google Trends. Other popular searches include “stocks to buy now reddit,” “reddit wsb,” “reddit wallstreetbets,” “penny stocks reddit,” and “reddit stock market.”
In Reddit’s “Stocks” community, an investor by the name 7thAccountDontDelete posed a question for the forum: “You have to put all your money into 5 stocks and hold it for 10 years, what are you buying and why?”
Many of the answers included big names like Apple (NASDAQ: AAPL), Tesla (NASDAQ: TSLA), Microsoft (NASDAQ: MSFT), and other top tech names, while others included more obscure picks like Chinese electric vehicle maker NIO (NYSE: NIO), and medical products manufacturer Bio-Rad Laboratories (NYSE: BIO).
Mrmrmrj643’s response received the most upvotes. The user explained that it’s extremely rare for the winners of the previous decade to remain winners in the following decade.
“In the 80s, big pharma did very well,” Mrmrmrj643 wrote. “In the 90s, they did not. Tech hardware did very well. Then tech hardware crashed and housing and commodities led the way. For the last 10 years, software and internet media have dominated, but the kings are likely established now.”
Instead of big tech names, Mrmrmrj643 argues genetic therapy and genomics could very well deliver the next big move in the stock market. “Find companies between $1 billion and $20 billion mkt cap and spread your money across them,” he said, adding that Agilent (NYSE: A), Invitae (NYSE: NVTA), NanoString Technologies (NASDAQ: NSTG), and Thermo Fisher Scientific (NYSE: TMO) are his top picks.
Other users highlighted other megatrends that carry high expectations for the next ten years, including cloud computing, clean energy, artificial intelligence, and online gaming, among others.
WSB_ThAw listed “high risk, high reward and more exotic picks,” including Chinese growth stocks Meituan Dianping (OTC: MPNGF), Huya (NYSE: HUYA), and Douyu International (NASDAQ: DOYU). WSB_ThAw also likes semiconductor Marvell Technology (NASDAQ: MRVL) writing that it’s an “innovative company in a market relevant for the next decade, high chance of being bought out somewhere along the way.”
“Stocks” member AugustinCauchy spun the 1,100-plus comments on the thread into a word cloud that included the most popular names. Aside from Apple, Microsoft, and Tesla, some of the most popular names included Alibaba (NYSE: BABA), Amazon (NASDAQ: AMZN), AMD (NASDAQ: AMD), and Walmart (NYSE: WMT).
