What are the best stocks to buy in 2022 ? Which companies to invest in? This question, legitimate, came to me from many investors and aspiring investors especially in light of the events that have characterized and are still characterizing the financial markets due to COVID-19.
Identifying the best stocks to buy is complex because the current economy is characterized by very fast pace and extremely fast changes.
If you are at the beginning of your journey, in addition to this article, you should take a look at this article dedicated to those who have never invested in shares and need a preliminary guide that, in some way, anticipates the real “list” .
Stocks to invest in Today: Tips to choose the best
This article, in addition to providing the best actions to invest in for the future , is also an investment guide NOT to do: in the second part, in fact, you will find a series of tips to avoid unprofitable operations.
Furthermore, the contents you find here are based on a drawer logic : since beating the market is difficult, we try to limit the risks by focusing on the long term.
If you have never invested in stocks or think you are inexperienced, download the free report on the 3 best stocks to invest , and if you want to learn more, take a look at the general guide to investing in stocks .
That said, we can get started.
Best American Stocks
The source from which we draw for this article is a mix of the main American newspapers that, annually, publish reports dedicated to the most interesting titles in their market.
Here are, in short, the actions suggested by the American experts, proceeding from the smallest capitalization to the largest.
This company connects artisans and creators of hand-made objects with customers who want to buy something handmade and out of large-scale production. Thanks to the increase in attention to environmental issues and respect for workers, it was experiencing a growth process before the COVID-19 pandemic.
During the pandemic, the entire ecommerce industry got a boost, but Etsy skyrocketed, growing at more than double the overall ecommerce.
In short, an exceptional case, if we consider that there are few e-commerce companies that compare with Amazon and survive, but Etsy not only survived when Amazon launched its own platform of handmade articles… it won .
Pinterest represents a tool that brings everyone together in a world where all other social networks are divisive. In fact, this social network allows you to unleash your creativity. People go to Pinterest to focus on things, not other people, it allows for inspiration.
It suffers from the lack of advertising, but despite this it continues to attract investors.
This company operates the Garena digital gaming platform, but the most promising growth drivers are the Shopee e-commerce platform and the Sea Money digital payment platform , both of which have grown at triple-digit rates.
With Garena, Shopee and Sea Money, Sea Limited has three fast growing and high potential businesses. It is fast becoming a leader in all three fields, both in its home region and in other key markets around the world.
MercadoLibre operates an e-commerce market that has a dominant presence in some of the most populous nations in the region, including Brazil and Argentina.
But that’s not all: it runs a fast-growing payments platform, Mercado Pago, a logistics service called Mercado Envios, a corporate lending platform, and more.
MercadoLibre represents many things: it’s like Amazon, PayPal, Square, Shopify and more, a leader in Latin America, and it’s in a much earlier growth phase.
Shopify operates a platform designed to allow businesses of all sizes to sell their products online, with a focus on empowering small businesses. It offers a monthly subscription plan for businesses and also offers many related services.
Shopify’s growth may be just beginning. The platform generated $ 4.6 billion in revenue over the past year.
Block, formerly known as Square, has evolved from a niche payment processing hardware company to a huge financial ecosystem for merchants and individuals.
As for merchants, Block boasts approximately $ 160 billion in payment volume per year, while for individuals it boasts tens of millions of active users on its Cash App.
Block also recently acquired the Tidal music app, as well as the Afterpay platform (buy now and pay later). The company can only grow stronger.
Robotic surgery is surpassing the most imprecise dexterity of the human being. This surgical system is the market leader, and the “razors and blades” model helps it generate a recurring revenue stream as its systems are used to perform the procedures.
Intuitive Surgical is a leader in its field and has a lot of potential for growth.
The pandemic has, yes, damaged its theme parks and film activities, however the Colossus has taken advantage of the Disney + streaming service, which has become more profitable than Disney itself expected, so much so that now the company is trying to value. streaming to the max. Here you can find the review.
The combination of a reopening and a growing activity fueled by the pandemic could become definitive.
Berkshire Hathaway owns a collection of around 60 branches, including household names like GEICO, Duracell, and Dairy Queen, to name a few.
Berkshire also owns a portfolio of common stock worth more than $ 300 billion that includes a massive stake in Apple and holds shares in dozens of other companies, many of which were hand-picked by legendary investor Warren Buffett himself.
I advise you to learn more here.
There is no need for you to introduce it to you and, if you believed it a few years ago, surely today you will be laughing at it.
Best Stocks to buy in Europe
I draw on an article published on the Guru Focus site in which a picture is drawn that analyzes the trend of the companies examined over the last 10 years. Here are the top three.
The Yacktman Fund holds the majority of the outstanding shares of the French transport and logistics company and the managers have decided to increase their commitment.
Bolloré has recorded an average annual earnings growth of 12.60% over the past 10 years and is considered by Guru Focus to be among the best companies in Europe in a long-term perspective.
Nestlé is the largest food and beverage producer in the world and is a company loved by long-term investors.
The final return in 2018 was 2.52%. Nestle SA’s forward dividend yield is 2.52% and has grown by an average of 2.40% over the past 10 years.
We are in the luxury field with a company that made 2.48% in 2018 and distributed profits on average with 3.20% per year in the last decades.
Here you can read the guide on Richemont Stocks to find out the forecasts and my opinions.
Before continuing, I leave you the guide dedicated to the best European stocks . This is an in-depth review where you will find some more information.
Green stocks, is this the right historical phase?
In the last month 1, the Centro Studi di Affari Affari has created GREEN 4 FUTURE , an exhibition dedicated to the green economy which is the sector with the greatest potential given the plans of governments and international institutions.
The best sectors that stand out are:
- Electric mobility : there is not only Tesla but a whole world that is evolving in this sense;
- Sustainable food production : many companies such as Beyond Meat are innovating the way they produce meat or are even replacing meat with preparations of animal origin to reduce the impact on the planet and make production more efficient;
- Energy production : fossil fuels are destined to run out, will solar, wind and biodynamic energy finally take off?
Companies to invest in for the future: which stocks to bet on?
What are the actions that will make a bang ? I think it is very difficult to come up with an exact list but there are several sectors that appear to be promising as well as megatrends that have been gaining ground in recent years.
Here are some titles that are being talked about a lot at this stage:
- Best Pharmaceutical Stocks
- Chinese stocks to buy
- Best Technological Actions
- Fintech shares
- Actions on Autonomous Driving
- Biotech shares
- Stocks Artificial intelligence
- Financial Actions
- Penny Stock Shares
- Actions 5 G
- Luxury shares
- NIO shares
- AirBNB shares
- Roblox shares
- EToro shares
- Guide to SPACs: how to focus on the phenomenon of the moment
New companies to invest in
What are the growing stocks and the new stocks to bet on? Here are some tips:
- Occidental Petroleum Corporation (OXY)
- Mosaic Co (MOS)
- Halliburton Company (HAL)
- Marathon Oil Corporation (MRO)
- APA Corporation (APA)
- Coterra Energy Inc (CTRA)
- Hess Corporation (HES)
- CF Industries Holdings Inc (CF)
- Nucor Corp (NUE)
- Chevron Corp (CVX)
Shares on which to invest by diversifying
If you are looking for a longer-term investment, the following resources may be useful to you:
- Best Equity ETFs
- S & P500 ETFs
- FTSE MIB ETF
- Dax ETFs
- ETF China
- Emerging Markets ETFs
- Bond ETFs
- Megatrend ETFs
- Best Pharmaceutical and Healthcare ETFs
- Real Estate ETF
- New ETF on Hydrogen
- Infrastructure ETFs
- Industry ETFs
- Energy ETFs
- ETFs of First Necessities
- Media and Communication ETFs
- Low Volatility ETFs
- High dividend ETFs
- Food and catering industry ETFs
- Travel and tourism ETFs
- Mining Actions
- Momentum ETFs
- ETF Equal weighting
If you are new to ETFs or have never invested in them, you can start with the beginner’s guide here .
Stocks (and stocks) not to buy
If finding the right stocks to invest in is difficult, at least we can focus on which ones you shouldn’t buy. We must be very demanding when selecting our assets in the portfolio and it is clear that even at a first screening there are actions to be avoided at all costs. Between these:
- Tesla : I will say something that goes against the trend but the growth of the electric car giant, the enormous hype that revolves around Musk and many unknowns about his future push us to be cautious given the prices now reached;
- China and India: We have often heard about the performance of shares of companies listed in China or India. The problem is that market regulation is not comparable to Western regulation. Especially in China, the fear that a speculative equity bubble is being created has been growing for years now; the value of the shares is growing visibly faster than that of the profits produced and the lack of truly credible supervisory bodies is combined with doubts about the solidity of this growth. Focusing on these countries is more important than ever but it must be done with great diversification. At the moment, Chinese and Indian companies listed on the American stock exchange are certainly with a more reliable profile although Beijing in the course of 2021 has shown some suffering for these companies which, by listing abroad, they acquire independence. Alibaba is somewhat the emblem of all this;
- Automotive sector : in recent years the car market has been changing at a very rapid pace. The companies are essentially engaged on two fronts, namely the development of self-driving cars that are increasingly less fueled by fossil fuels. This transition phase is destined to change the balance on the pitch, marking the end of someone and someone else’s triumph. Better not try to gamble on the prospects of one or the other manufacturer, because a clear scenario has not yet emerged;
- Banking sector : it is probably one of the sectors most affected by technological and business changes in recent years. To learn more, read this article where I talk about it in more detail;
- Tobacco: with the passage of time, smokers – especially outside Italy – are fewer and fewer. Governments oppose this practice, public opinion is increasingly aligned against cigarettes and companies are trying to clean up by studying the electronics market. Philip Morris has already tried, whose famous iQos barely account for 5.5% of total revenue despite a very aggressive marketing strategy. The future is gray for tobacco producers, at least so it seems;
- Retail : retail, with the advent of the internet and e-commerce, is losing momentum. There have already been big setbacks from institutional investors, including the famous sale of Warren Buffet’s stake in Walmart, the largest supermarket chain in the United States. This sector, also in light of what happened with the Covid-19 emergency, will have to undergo a radical transformation to ensure that the added value of its offer does not lie in the simple sale of products and in the price war with digital competitors. , which is difficult to cope with.
Mutual funds _
Investment funds have the same principle as ETFs: they raise capital in exchange for shares and buy stocks with the capital raised. The substantial difference is that ETFs are passively managed , i.e. they reflect the market trend, while funds are active in trying to beat it. The reality is that these tools are not convenient for two reasons:
- It is not said that they really beat the market, indeed, this rarely happens ;
- Management fees are significantly higher than those of an ETF. If for a passive fund you can pay on average 0.30-0.50% of your capital, for a mutual fund the fork rises to 1.50-2.50% (and I’m keeping low).
On this blog I have listed 8 reasons not to invest in mutual funds .
ETFs on Italian stocks
There are, of course, ETFs (and also funds) that replicate the FTSE MIB , the main index of the Italian Stock Exchange. The problem with this index, in my opinion, lies in the composition: the largest Italian companies are banks which, these days, are doing anything but well.
The spread weighs – before the government and us citizens – on our banks, which find themselves issuing fewer loans and mortgages. In a country where banks have a fundamental role, due to the tendency of medium-small and undercapitalised companies, the trend of this sector is crucial for the entire national economy.
To this we must add that our banks have many Italian government bonds in their stomachs which, as the spread rises, devalue and, consequently, drag down the bonds of the banks themselves.
For the mechanism I was talking about (ETF = passive replication of an index = FTSE MIB index full of banks), no easy times are expected for Italian equities.
If I really wanted to make a more “pushed” reasoning – I’m not telling you to do it and I don’t take responsibility for wrong choices – paradoxically, the Italian bond market (BTPs and shareholders) would become very interesting because, in the face of virtually no risk of see the country declare bankruptcy (do the spells but, as of today, we are not Argentina!), the returns are very good. For a BTp, at the time of writing, the Treasury pays 3.60% annual interest against an inflation of 1.10%.
Lately there is a lot of talk about leveraged ETFs especially in the trading world. In a very synthetic way, leveraged ETFs are “cousins” of traditional ETFs which, depending on the leverage chosen, allow you to open short positions for higher returns.
While tempting speculators, I don’t feel like suggesting them at all because they are complex and risky securities for those like me who want to have a drawer-like approach in the long run.
Certificates that replicate baskets of shares
Another category that has recently risen in vogue ( here is my general guide), certificates are often created with an equity underlying. They can have various functions, usually they are used for protection of other investments or for speculation.
To date, I have not found valid reasons to invest in certificates , as explained in the general guide, and I invite you to be wary of those who propose to invest in certificates with shares or baskets of shares as underlying.