What are the top shares to buy for long-term investing? This comes up regularly, especially from people who are looking ahead and thinking about investing for retirement. Many of these investments will fall into the conservative category, as conservative investments do well at building income over time.
First, though, shares are stock in a company that investors can buy on stock exchanges. Investors tend to have certain investment goals and a primary investing temperament that informs their buying decisions. Investing temperaments range from conservative to aggressive, although most investors will mix conservative and aggressive investments within a diversified portfolio.
Some of the top shares to buy for long-term investment growth are blue chip stocks
Blue chip stocks are well-established companies, often with a strong reputation and following. You probably already know many blue chip companies without even realizing it. That’s because many of them are household names, and they may even be brands that you own or stores that you shop at regularly. Walmart and Apple come to mind.
Companies that receive the designation of “blue chip” have a history of success. You can look at their historical performance and see consistent profits. Many of these companies pay dividends to shareholders as well. Blue chips that have a record of paying dividends for a minimum of five years, with increases to those dividend payments, are excellent targets for conservative-minded, income-seeking investors who want to make money over time.
Growth stocks may also be some of the top shares to buy for long-term increases
Although not as well-known or profitable as blue chips, growth stocks can still experience above-market gains over time. This can be seen within the company’s specific sector, or within the market as a whole.
Growth stock companies rarely pay dividends, and instead, reinvest profits into the company. This action is one of the main reasons growth stocks can grow as they do, because the company’s internal investment can go towards research and development or expansion.
Growth stocks tend to be more volatile than blue chip stocks, so they should make up a smaller piece of a diversified conservative portfolio. More aggressive investors may want to add more growth stocks to their portfolio in general. The best part about the best growth stocks is that many investors may overlook them, yet the stock’s ability to grow can last for years.
Adding value stocks to your portfolio can also lead to owning some top shares to buy for long-term growth
Value stocks are another area of investing targeted by conservative-minded investors who search for deals. Value stocks are known to trade at rates lower than their fundamentals suggest. Many of these stocks are undervalued, and some are even cheap relative to their sales, earnings, or assets.
Due to this undervaluing, value stocks have an excellent opportunity to grow in value over time. In relation to growth stocks mentioned above, value stocks tend to cost less and grow slower than growth stocks. They are also less volatile than growth stocks. Some growth stocks can turn into value stocks, which is typically seen within industries focused on technological advancements.
Incorporating a mix of blue chip stocks, growth stocks, and value stocks in your diversified portfolio will help you own a broad selection of investments that may be among the market’s top shares.
What kinds of stocks do you focus on for growth over time?