The Best 10 Stocks to Purchase in 2022

Here are 10 stocks that could make great additions to your portfolio both now and in the future.

It's understandable that many investors don't know where to start because there are literally hundreds of publicly traded firms you may invest in, not to mention the numerous exchange-traded funds (ETFs) and mutual funds you can purchase. Also, because of the recent market crash, the prices of many stocks are now much lower than they were six or twelve months ago.

The Best 10 Stocks to Purchase in 2022

I've attempted to do the best I can here without a crystal ball that can tell me which stocks will yield the highest profits. I'll talk about ten stocks in this article that I believe long-term investors wishing to invest their money could find to be excellent buys in 2022.

There are three things to keep in mind before we discuss the stocks you came for:

  • The greatest companies to buy now mostly depend on your unique financial circumstances. Read our article on stock investing to get a sense of where you stand. It walks you through topics like creating an emergency fund, asset allocation, and when to buy stocks.
  • These stocks appeal to me as long-term investments. I have no idea what they'll do in the coming days, weeks, or months. In fact, most or all of these could go down in the near future if inflation stays higher than expected for a longer time or if the United States goes into a recession.
  • The list below isn't intended to be a fully diversified portfolio, but I did make sure there was some diversity. Instead, I have the strongest certainty that these stocks will perform better in 2022 and beyond. Building the core of your portfolio around an investment like the Vanguard Total World Stock Index Fund ETF is the greatest one-step method for diversifying your holdings (NYSEMKT:VT).
Let's go on to my list of the ten greatest stocks to purchase right now, listed in order of increasing market cap, followed by a brief buy thesis for each stock.

Best-performing 10 stocks for 2022

  1. Etsy (NASDAQ:ETSY), $10 billion
  1. Pinterest (NYSE:PINS), $13 billion
  1. MercadoLibre (NASDAQ:MELI), $40 billion
  1. Sea Limited (NYSE:SE), $44 billion
  1. Shopify (NYSE:SHOP), $45 billion
  1. Block (NYSE:SQ), $48 billion
  1. Intuitive Surgical (NASDAQ:ISRG), $78 billion
  1. Walt Disney (NYSE:DIS), $198 billion
  1. Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B), $687 billion
  1. Amazon (NASDAQ:AMZN), $1.25 trillion

Pitch decks for each stock:

After viewing my top 10 list of the finest stocks to purchase in 2022, you might be curious as to why I chose each company. Here's a quick summary of the reasons why I think each of them would make excellent long-term investments.

Etsy

Before the COVID-19 outbreak, Etsy was flourishing thanks to its ability to match creative entrepreneurs with clients seeking items that are a little out of the ordinary compared to standard e-commerce fare. The pandemic saw a dramatic increase in all forms of e-commerce. But Etsy certainly took off, expanding at a rate that is more than twice as fast as general e-commerce.

The fact that Etsy was a logical fit for customers looking for distinctive face masks undoubtedly helped, but the site's expansion has been amazing in all product categories. In the first quarter of 2022, sales on Etsy's marketplace were 177% higher than they were at the same time before the pandemic. You'll see that I pay attention to strong platforms throughout this list. Without a doubt, Etsy is one of them. Few online retailers can compete with Amazon and remain successful. 

When Amazon launched its own platform for handmade goods, Etsy not only made it through, it triumphed. Etsy's market opportunity is in the hundreds of billions of dollars, and it has only begun to scratch the surface because of its platform and brand strength.

Pinterest

 In a social media ecosystem that has become more dismal and polarizing, Pinterest stands out as an oasis of happiness. That partially stems from Pinterest's primary focus on ideas. On Pinterest, users concentrate on items rather than other people. People can find visual inspiration on Pinterest for the things they wish to do, whether it be creating their ideal deck, making a child's birthday cake, or changing their clothing.

Despite strong sales and community development, Pinterest has been criticized for not being as monetized as Facebook (NASDAQ:META). This is especially true given that 80 percent of its users live outside the country. But I adore Pinterest because of this. It's also important to note that Pinterest is beginning to investigate how it fits into the e-commerce environment. In the coming years, this might be a significant growth driver. After all, consumers use Pinterest to find products they might wish to purchase. Both the crowd and the platform are present.

When people are available to offer advice, it's really simple to imagine how smooth advertising, lead generation, and product placement could be. The company just agreed to buy a fashion shopping platform called The Yes and has been trying out customized shopping feeds.

MercadoLibre

For good reason, MercadoLibre is frequently referred to as the Amazon of Latin America. The business runs an online marketplace with a strong presence in some of the region's most populated countries, such as Brazil and Argentina.

But MercadoLibre is much more than that. It also runs a business finance platform, Mercado Envios, a fast-expanding logistics service, and Mercado Pago, a payments network. The Latin American version of Amazon, PayPal (NASDAQ:PYPL), Square, Shopify, and more are all combined into one company called MercadoLibre, which is still in its early stages of development.

Sea Limited

Sea Limited is expanding quickly and becoming a major force in Southeast Asia. The business manages the enormous Garena digital gaming network. However, its Sea Money digital payments platform and Shopee e-commerce platform, both of which have been expanding quickly, provide the most promise as growth drivers. Shopee's revenue increased by 64% in the first quarter of 2022 compared to the same period last year, while Sea Money, the newest division of the company, experienced a startling 360% growth.

With Garena, Shopee, and Sea Money, Sea Limited has three businesses that are rapidly expanding and have great potential. It is swiftly rising to the top in all three, both in its own area and in other important global areas.

Shopify

Shopify is a platform that enables companies of all sizes to sell their goods online, with an emphasis on helping smaller companies. Businesses can subscribe to Shopify's services starting at $29 per month, and it also provides a wide range of related services that make operations run more smoothly. Shopify has become a force due to its "one-stop-shop" strategy for allowing e-commerce. In comparison to other companies aside from Amazon, it now has more e-commerce revenues coming via its network. Shopify, though, might only be getting started. 

As more retailers turn their attention to online sales, the platform's $4.8 billion in revenue over the previous year represents just a small portion of the estimated $153 billion (and growing) global market opportunity.

Block

Block, formerly known as Square, has developed into a sizable financial ecosystem for businesses and individuals from a specialized payment processing hardware startup. Block offers a variety of services that work well together for businesses. 

In the last four quarters, it processed about $178 billion in payments for merchants.
On the user-side, Block offers the Cash App, which has tens of millions of users, as well as features like direct deposit and debit cards, person-to-person money transfers, the ability to buy and sell stocks and Bitcoin (CRYPTO:BTC), and much more. Additionally, Tidal, a music streaming service, and the Afterpay platform were recently bought by Block. The company will only become more successful when its ecosystem changes.

Intuitive Surgical

Surgery with an intuitive surgical robot beats using humans' unsteady hands. This broad view has mostly remained unchanged since I initially purchased Intuitive Surgical shares in 2005. The da Vinci surgical system is the undisputed market leader, and the "razors and blades" business model enables it to earn a recurrent income when medical procedures are carried out using its equipment. Intuitive Surgical will continue to lead its market and have plenty of room to grow as more surgical systems are used and more operations can be done.

Disney

Keep your focus and ignore any short-term political obstacles. The portfolio's all-weather tires are The House of Mouse. The disease hurt Disney's theme parks and movie business, but it helped its streaming service, Disney+, become a giant years ahead of schedule. Disney's theme parks and movies are in greater demand than ever in 2022. Disney+ has enjoyed tremendous success. It makes sense for the company to focus on growing it along with Hulu and ESPN+, which are also streaming channels.

In fact, Disney may be the perfect example of a pandemic-fueled growth company and a reopening play working together. Because of its incredible portfolio of intellectual property (Marvel, Star Wars, ESPN, Pixar, and Disney), as well as its cash-cow theme park industry, it may be the safest stock on this list. And as its emerging business sectors develop, it still has enormous development potential.

Berkshire Hathaway

This is the least exciting value pick of the group, despite the fact that growth stocks make up the majority of this list. About 60 subsidiary companies are owned by Berkshire Hathaway, among them well-known brands such as GEICO, Duracell, and Dairy Queen. Additionally, Berkshire owns a portfolio of common stocks worth close to $350 billion, which includes sizeable stakes in a number of businesses, many of which were personally chosen by legendary investor Warren Buffett, such as Apple (NASDAQ: AAPL), Bank of America (NYSE: BAC), Chevron (NYSE: CVX), American Express (NYSE: AXP), and Coca-Cola (NYSE: KO).

Buffett haters will claim that he has lost his fastball, but despite Berkshire's enormous size, the company consistently outperforms the market. If it were a mutual fund, Berkshire would be the biggest actively managed mutual fund in the world. 

Buffett won't hold the reins indefinitely. But Berkshire is his legacy, and he has spent years stress-testing it to ensure that it will be in good health long after he is no longer in charge. 

He and his colleague Charlie Munger have been purchasing back shares at an unprecedented rate as a sign of their faith. The rest of us should take note of that signal.

Amazon

For the majority of individuals, Amazon doesn't actually require much of an elevator pitch. The company dominates the US e-commerce sector, and it also owns the market's top cloud platform with Amazon Web Services.

But there is more room for growth than you might imagine. E-commerce adoption is still far from being at its highest point; it makes up less than 15% of all retail sales in the United States. The cloud sector is also a very new one. Amazon also has a huge amount of potential in other sectors, including healthcare, supermarkets, local markets, and more.

Feel free to disregard the stocks that don't speak to you as you begin with those that do.

Lucky you!

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