Instead of focusing on short-term market fluctuations, long-term investors seek stable companies that demonstrate consistent performance over years or even decades. Today, we’ll look at three of the top stocks and cryptos that have delivered steady returns over the long term, generally outperforming the S&P 500 over most trading periods.
Investors should look for opportunities to enter these buy-and-hold stocks and cryptos on a dip. While each has rallied by double-digit percentages this year, market volatility could bring lower prices and the chance to buy at slightly cheaper prices. But keep in mind that these are long-term investments meant to be held for years to come. So don’t miss your opportunity by holding out for a large pullback that may never come.
With that said, let’s dive into why these top stocks and cryptos should be on all investors’ radars right now.
Restaurant Brands (QSR)
Restaurant Brands (NYSE:QSR), which operates a number of popular restaurant chains including Burger King and Tim Hortons, is delivering strong financial results despite rising inflation and a struggling economy.
The company reported Q1 results on May 2 that beat estimates on the top and bottom lines. Revenue rose 9.6% year over year to $1.59 billion, beating estimates by $30 million, while net income rose 2.6% to $277 million. Earnings per share of 75 cents surpased predictions by 11 cents.
Despite prevailing macro challenges, the company displayed impressive growth in both comparable and system-wide sales, signaling a promising start to the year. Restaurant Brands saw same-store sales increase 10.3% across all its chains, with double-digit jumps at Burger King and Tim Hortons.
The stock has a “moderate buy” rating from the 21 analysts who cover it, with a consensus price target of $78.05. While this is only about 4% above the current share price, the stock has outperformed the market over the long term. Shares are up 109% in the past decade compared with a 93% return for the S&P 500. While this is not eye-popping outperformance, it points to QSR being a steady grower for investors.
Restaurant Brands offers a compelling proposition for growth investors, with the potential for share price appreciation, increasing dividends, and a focus on community and environmental responsibility. Further, the company’s international presence and strategic efforts to enhance operations position it as an attractive long-term investment, particularly as its expansion plans materialize.
Apple (AAPL)
Apple (NASDAQ:AAPL) really needs no introduction as one of the top long-term investment stocks. The tech behemoth accounts for nearly 50% of Warren Buffett’s publicly traded portfolio via Berkshire Hathaway (NYSE:BRK-B). Any company that Buffett bets big on is one everyone else needs to hold.
If you hold an index fund of any kind (but particularly a market-cap-weighted fund), you’re likely already exposed to Apple. But for those who prefer to pick stocks, there are reasons to consider this nearly $3 trillion company, even at its massive valuation.
With Apple’s stock nearing its post-pandemic peak, investors may be hesitant to buy now. Shares are trading at nearly 31 times earnings compared with a five-year average of around 25 times earnings. Yet, the stock has proven to be a long-term winner, returning an average of 28% a year over the past decade versus a 12% average annual return for the S&P 500.
One of the main reasons to be bullish on Apple is the company’s considerable ability to set prices thanks to its integration of beautifully designed hardware with user-friendly software. Yet, it’s the company’s services division that investors are increasingly focused on. Apple’s services revenue, which includes App Store, Apple Pay, Apple TV+, Apple Music and iCloud, hit an all-time high of $20.9 billion in the most recently reported quarter, up 5.5% year over year.
Bitcoin (BTC-USD)
The world’s largest cryptocurrency, Bitcoin (BTC-USD), is the obvious choice when it comes to the best long-term cryptos to own. In fact, there are few other projects that hold the same kind of water Bitocin can for a portfolio.
Nearly any investor that held Bitcoin for a significant period of time since its inception to today is up. Sure, there are a few investors that bought near the 2021 peak that may be down on their investment… for now. But every previous significant decline in Bitcoin has been met with a new all-time high. Investors who have shorted this token, over time, have been proven wrong.
I think Bitcoin’s dominance and long-term uptrend are likely to continue, as retail and institutional investors continue to search for alternative assets with low or negative correlations to equities. If we do see a recession materialize (as many experts expect), investments such as Bitcoin could come into vogue again.
There are speculative digital assets and then there’s Bitcoin — the digital gold of crypto. In many respects, the long-term thesis with this token is about as easy to understand as it comes. In that regard, I think this is one of the few moderate-risk cryptos worth buying and forgetting about for a long time.
On the date of publication, Chris MacDonald has a position in AAPL, BRK-B and QSR. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.