Stock trading has been an essential source of passive income for many. It has been observed that the holding period of stocks on average has subsided too and manifests a downward trend since the 1950s. Tesla happens to be a forerunner in the fast-growing electric vehicle market. Zscaler is helping organizations accelerate and make corporate networks secure. More about the two long-term stocks to buy and hold, keeping in mind your long-term goals, are mentioned below.
Best stocks to buy for long-term investment
Warren Buffet said that when it comes to deciding upon the period for which he might hold stocks, it could be forever. However, not all traders or investors follow the principle and buy and sell within a brief period.
On the New York Stock Exchange, it is seen that the average period for holding stocks has gone down to less than 6 months as of June 2020.
One of the biggest advantages of holding stocks for the longer term is that you do not become vulnerable to market volatility otherwise present in stocks held for a shorter term. These are the stocks to buy immediately.
The two best growth stocks for the next 5 years include the following-
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Tesla (NASDAQ: TSLA)
According to the chief operating officer of Tesla Elon Musk, the company’s efficiency in manufacturing is the greatest advantage for which investors can hold on to stocks. Theoretically, the annual production capacity is more than 1 million electric vehicles. Although there are chip shortages, in 2021, it delivered more than 936,000 vehicles. The number is up by almost 87% compared to the last year.
Why does buying and holding Tesla stocks make sense?
- With production in China and the US, cost per vehicle dropped by 55% during the 2017 and 1st quarters of 2021.
- Through November 2021, the market share of Tesla was found to be 13.7% in terms of sales of electric vehicles.
- Excellent translation into financial results was seen due to the company’s dominant position in the market.
Check the table below-
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- Tesla is also planning to introduce an autonomous ride-hailing service and ARK analysts have valued it to be $1.2 trillion by the year 2030.
- Musk hints that Tesla would become a fully autonomous $25,000 EV between 2023 and 2024.
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Zscaler(NASDAQ: ZS)
Zscaler is a cybersecurity expert. Zero Trust Exchange is its cloud platform and covers as many as 150 data centers, thereby developing a network on a global scale that is reliable, safe, and fast. This is the company’s distributed architecture, which is known as SASE or secure access service edge.
Why does it make sense to invest in stocks of Zscaler?
The company is equipped with the following features.
- Zscaler Private Access (ZPA) safeguards resources that are managed internally.
- Zscaler Internet Access (ZIA) protects resources externally managed.
- Zsaler Digital Experience (ZDX) monitoring solution for infrastructure performance.
- Zscaler Cloud Protection (ZCP) tool that will secure cloud-related workloads.
Check out the table below-
As such, instead of focusing on the cheap stocks to buy now, it is best to invest in stocks that will give greater returns in the days to come or keep long-term goals in mind.
