Five Stocks to Buy Now for Long-Term Retirement Savings of $1 Million

Five Stocks to Buy Now for Long-Term Retirement Savings of  Million

Every long-term investor should have financial stocks in their portfolio. For what? Money management is a multi-billion dollar industry.

There is something for every financial investor. Do you want to invest in high-growth emerging markets? Check. I want some blue chip stocks Will this pay you dividends? No problem. Any way you slice it, there is a way to build wealth that can help you retire as a millionaire.

Here are five stocks to explore that I selected for their strong fundamentals and long-term potential.

1. Nu Holdings

More than 660 million people live in Latin America, and many still lack access to essential banking services. Currently in portfolio (NYSE: NOW) helps change that. It is a digital bank, which means it does not have physical branches. As long as you have access to the Internet, you can bank with Nu. The company operates mainly in Brazil, Mexico and Colombia, with 95 million members today.

Membership is growing and cross-selling of different banking, insurance and investment products is fueling strong profit growth. The company’s net income was $361 million in the fourth quarter, up from just $58 million a year earlier. With profitable growth and expansion, Nu Holdings could add a spark to any long-term portfolio for decades to come.

2. Free Market

Many believe that the Latin American e-commerce giant Free market (NASDAQ: MELI) is a one-trick pony, but that couldn’t be further from the truth. MercadoLibre’s fintech unit, Mercado Pago, could be the the jewel of the company. In the fourth quarter, it had 53 million unique fintech users, up 22% year-over-year. Users can bank, borrow and invest with Mercado Pago.

Investors may appreciate that MercadoLibre is much more than a fintech company. Its e-commerce, logistics and advertising units provide the company with a diversified revenue base. Total revenue is up 37% in 2023, so there’s still plenty of investment potential if the company can maintain its breakneck pace.

3. Berkshire Hathaway

Legendary investor and billionaire Warren Buffett can’t invest your money for you, but buy shares of his holding company Berkshire Hathaway (NYSE:BRK.A) (NYSE:BRK.B) is the closest thing. His firm owns a variety of private and publicly traded companies, spanning insurance, energy, railroads, and more. Collectively, Berkshire is a financial fortress. The company’s numerous businesses provide stable and diversified revenue streams, and the company has $167 billion in liquidity.

This means investors can rest easy knowing the company is built to last. Its $370 billion investment portfolio is full of blue-chip stocks that continue to grow and pay dividends that pile up on Berkshire Hathaway’s balance sheet. It’s not just security that investors get with this stock; stocks have also beaten the broader market over time. There’s a lot to like here.

4. Bank of America

Megabank Bank of America (NYSE:BAC) is one of the most important holdings in Buffett’s portfolio at Berkshire Hathaway. Buffett bought stocks in 2007, then sold them, but bought them back in 2017. Banks like Bank of America are arguably too big to fail if the 2008-2009 financial crisis proved anything to investors. In other words, their failure would cause catastrophic damage to the financial system, which is why the government provides them with a safety net.

Buffett now places Bank of America second in Berkshire. The company is growing with the U.S. economy and pays investors a solid dividend that now yields 2.6%. There is always a risk of a new economic catastrophe that threatens all banks. But ultimately, it’s hard to deny that Bank of America is a top-rated bank that investors can buy and hold with confidence.

5. Public storage

Real estate is one of the oldest creators of wealth in the world. Real estate investment trusts (REITs) like Public storage (NYSE:PSA) allow investors to benefit from real estate without owning buildings. REITs must pay at least 90% of their taxable income, making them great dividend stocks. Public Storage is down 4.3% at its current share price. The company owns more than 3,000 properties in the United States.

What’s great about Public Storage is that it can increase unit rent over time, which builds revenue growth into its business model. The sector is expected to grow at over 7.5% annually through 2027, which bodes well for the company. Investors can buy and hold this safe bet because real estate never goes out of style for long.

Should you invest $1,000 in Nu right now?

Before buying Nu stock, consider this:

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Bank of America is an advertising partner of The Ascent, a Motley Fool company. Justin Pope has no position in any of the stocks mentioned. The Motley Fool ranks and recommends Bank of America, Berkshire Hathaway and MercadoLibre. The Motley Fool recommends Nu. The Motley Fool has a disclosure policy.

Want $1 million in retirement? Here are 5 stocks to buy now and hold for decades was originally published by The Motley Fool

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