Best shares to buy: I’m building my portfolio around these 4 stocks

Ed Sheldon highlights what he thinks are four of the best shares to buy today. All of these companies have enormous growth potential.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

The best shares to buy depend on an investor’s financial goals and risk tolerance. For some, the best shares are lower-risk dividend stocks. For others, the best investments are growth stocks.

Here, I’m going to highlight four stocks I’m building my own portfolio around. I believe these stocks are some of the best shares to buy today, given my investment horizon (20 years+) and risk tolerance (high).

Inflation Is Coming

Inflation is out of control, and people are running scared. But right now there’s one thing we believe Investors should avoid doing at all costs… and that’s doing nothing. That’s why we’ve put together a special report that uncovers 3 of our top UK and US share ideas to try and best hedge against inflation… and better still, we’re giving it away completely FREE today!

Click here to claim your copy now!

Warren Buffett’s top stock

The first stock I want to highlight is Apple (NASDAQ: AAPL), which is Warren Buffett’s top holding. There are several reasons I like Apple as a long-term investment. One is the amazing ‘ecosystem’ it has developed. This has consumers (myself included) locked in, providing a competitive advantage.

Another is the growth in the company’s services division (Apple Pay, App Store, etc). This revenue is growing strongly and becoming a significant part of overall revenues.

Apple shares have had a great run in recent years. This doesn’t put me off though. In the long run, I think this company is likely to get much bigger.

A technology powerhouse

Another stock I’m building my portfolio around is Microsoft (NASDAQ: MSFT), a technology powerhouse that’s growing rapidly. Microsoft has dominant positions in a number of growth industries.

Not only is it the leader in business productivity solutions and work-from-home technology, but it’s also a major player in the cloud computing and video gaming industries. All of these industries are set to grow significantly in the decade ahead. This growth should provide tailwinds for MSFT.

The heart of the internet

The third stock I see as one of the best shares to buy is Alphabet (NASDAQ: GOOG), the owner of Google and YouTube. I like Alphabet for two main reasons.

Firstly, I see Google as the heart of the internet. If you want to find something online, you generally go through Google. This means Alphabet is in a powerful position from an advertising perspective.

Secondly, I’m excited about YouTube’s growth potential. This platform is growing at an incredible rate and has become a dominant form of entertainment.

The king of online shopping

Finally, another core holding for me is Amazon (NASDAQ: AMZN), the biggest player in both e-commerce and cloud computing.

Amazon has delivered phenomenal growth in recent years. However, in my view, it’s just getting started. Here in the UK, its market share in e-commerce is only around 10%. So I think there’s plenty of room to grow.

It’s worth noting that the cloud computing industry is forecast to grow at nearly 20% per year between now and 2025. This industry growth should benefit AMZN.

Risks

It’s worth pointing out that there are risks associated with each of these stocks. None are cheap. This means there’s valuation risk. If these companies experience setbacks (such as regulatory action), or there’s a market correction, their share prices could fall significantly.

As a UK investor, I also face foreign exchange risk because these stocks are all listed in the US. I’ll also say that, in the short term, these stocks could underperform the market. Right now, investors are focused on reopening stocks and Big Tech is out of favour.

From a long-term perspective however, I think these stocks have enormous potential. That’s why I see them as some of the best shares to buy today.

“This Stock Could Be Like Buying Amazon in 1997”

I'm sure you'll agree that's quite the statement from Motley Fool Co-Founder Tom Gardner.

But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.

What's more, we firmly believe there's still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.

And right now, we're giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool.

Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge!

Edward Sheldon owns shares in Apple, Amazon, Microsoft, and Alphabet. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK owns shares of and has recommended Alphabet (C shares), Amazon, Apple, and Microsoft and recommends the following options: long January 2022 $1920 calls on Amazon, short March 2023 $130 calls on Apple, short January 2022 $1940 calls on Amazon, and long March 2023 $120 calls on Apple. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Should you invest the value of your investment may rise or fall and your Capital is at Risk. Before investing your individual circumstances should be considered, so you should consider taking independent financial advice.

More on Investing Articles

Two hands holding champagne glasses toasting each other with Paris in the background
Investing Articles

Can the stock market make me rich even now?

Here are three ways I'm coping with the stock market's recent bout of weakness and aiming to build wealth in…

Read more »

Cogs turning against each other
Investing Articles

3 top investment trusts to buy right now

Investment trusts offer a wide range of options for investors. And in troubled times, they provide some safety through diversification…

Read more »

pensive bearded business man sitting on chair looking out of the window
Investing Articles

Why hasn’t the FTSE 100 crashed in 2022?

The catastrophic events of 2022 have left investors around the globe fearing the worst for stock markets. And some have…

Read more »

Trader on video call from his home office
Investing Articles

2 inflation-resistant FTSE 100 stocks to buy today

Soaring inflation could dent my returns if I don't take care. Here are two top inflation-resistant FTSE 100 stocks I'd…

Read more »

Tabletop model of a bear sat on desk in front of monitors showing stock charts
Investing Articles

Why a bear market is an investor’s best friend

A bear market can certainly be scary. But any investor tempted to sell might benefit by looking at Warren Buffett's…

Read more »

Portrait of elderly man wearing white denim shirt and glasses looking up with hand on chin. Thoughtful senior entrepreneur, studio shot against grey background.
Investing Articles

The Rolls-Royce share price could be stuck below £1 for a while. Should I buy?

The Rolls-Royce share price has been trading at penny stock levels since April. Could the stock be a bargain at…

Read more »

Young brown woman delighted with what she sees on her screen
Investing Articles

I’m aiming to make £45,000 in passive income with UK shares and never work again!

Investing regularly in UK shares can generate a substantial passive income over the long run. Zaven Boyrazian demonstrates how.

Read more »

Portrait of construction engineers working on building site together
Investing Articles

Down 30%, are CRH shares a screaming buy?

The CRH share price has slumped this year. Roland Head asks if this overlooked FTSE 100 share could be a…

Read more »