3 penny stocks I’d buy today and hold for 10 years!

I’m looking for the hottest growth shares for the next decade. Here are three penny stocks I’m looking to add to my investment portfolio.

| 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.

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

Image source: Getty Images

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

I don’t have a bottomless reserve of cash to draw upon. But here are three top penny stocks I’d buy today if I had spare money to invest.

I think they could deliver spectacular investor returns over the next decade.

Surface Transforms

The global sports car market looks set for rapid growth as the number of high net worth individuals soars. But investing in a motor manufacturer carries high risk as the market is super competitive.

So I’d rather invest in companies that make components for these car builders. Surface Transforms (LSE:SCE) is one such business I have my eye on, a penny stock that manufactures ceramic brakes for high-performance vehicles.

The business is steadily ramping up capacity to better exploit this fast-growing market, too. By 2026, it hopes to have £150m worth of sales capacity, up from the £50m that it hopes to have in operation by the second quarter.

Bear in mind, though, that earnings could disappoint in the near term should broader production issues among major car producers continue.

European Metals Holdings

The business of mining is extremely unpredictable and earnings forecasts therefore are fragile. Exploring for mineral deposits, developing mines, and finally pulling raw materials from the ground is highly complicated business.

But I’m still tempted to invest in European Metals Holdings (LSE:EMH). This mining company is in the process of developing Czechia’s Cinovec lithium project, said to be Europe’s largest resource of the metal.

This creates huge earnings potential. Long-term lithium demand is tipped to soar as sales of electric vehicles (EVs) takes off. The element is a key material in car batteries.

On top of this, I like the geographic position of this particular lithium stock. As the map below shows, it’s on the doorstep of some of the world’s biggest motor manufacturers.

Map showing the location of the Cinovec lithium asset.
Source: European Metals Holdings

Last week Cinovec was classified by the European Union as a strategic project, too. This gives it priority access to funding from the bloc. All things considered I think now’s a great time to buy this penny stock.

City Pub Group

UK leisure stocks face an uncertain 2023 as the cost-of-living crisis endures. This includes City Pub Group (LSE:CPC), a pub chain that operates 44 establishments across Southern England and Wales.

That said, I believe its focus on the premium end of the pub market could help it weather the storm. More affluent consumers have more money to spend during economic upturns and downturns.

In fact latest financials came as massive reasurrance to investors. City Pub Group saw like-for-like sales growth accelerate to 7.8% compared with 2019. Results would have been even better had it not been for rail strikes.

Brits are spending higher proportions of their income on leisure activities like going out for a pint or a cocktail. I think this penny stock could be a great way to capitalise on this theme.

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 assessed. Consider taking independent financial advice.

Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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.

More on Investing Articles

Investing Articles

Penny stocks to consider buying while their prices are this cheap

Some of the penny stocks I've been watching have already climbed above the 100p level. But I see potential in…

Read more »

Mature Caucasian woman sat at a table with coffee and laptop while making notes on paper
Investing Articles

Revealed! One of the hottest growth, value, and dividend shares to buy today

This high-dividend, low-cost company is also one of the London stock market's most exciting growth shares, writes Royston Wild.

Read more »

Investing Articles

£20,000 in savings? Here’s how I’d target a £2,219 monthly passive income with FTSE 100 shares

Investing in FTSE 100 shares can be a great way to turn a regular investment into a life-changing passive income…

Read more »

Investing Articles

These are the most popular 2024 Stocks and Shares ISA picks so far

After a few tough years, it looks like the 2024 Stocks and Shares ISA season is getting off to a…

Read more »

Investing Articles

This FTSE 100 ETF may be the simplest way to become a stock market millionaire

Ben McPoland considers one very straightforward stock market investing strategy that could lead to a million-pound portfolio.

Read more »

Investing Articles

I’d buy 11,220 Legal & General shares for £200 a month in passive income

Our writer considers how much money investors would have to put into Legal & General (LON:LGEN) shares to target £2,400…

Read more »

Fireworks display in the shape of willow at Newcastle, Co. Down , Northern Ireland at Halloween.
Investing Articles

These 2 magnificent FTSE 250 shares are on sale right now!

These FTSE 250 companies still look cheap, despite recent share price gains. Here's why our writer Royston Wild thinks they’re…

Read more »

Blue NIO sports car in Oslo showroom
Growth Shares

Down 36% in 2024, how low could NIO shares go?

The electric vehicle sector has seen some tremendous volatility in recent years, but what does the future hold for NIO…

Read more »