2 penny stocks I’d buy to hold for 10 years!

I’m searching for the best penny stocks to own for the next decade. Here are two I’ll be looking to acquire when I have spare cash to invest.

| 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.

Smiling senior white man talking through telephone while using laptop at desk.

Image source: Getty Images

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.

Penny stocks can be an effective way to build wealth. Price movements for these small-cap shares can be extreme at times. But over the long term, they can offer investors the opportunity to supercharge their capital gains.

Here are two I’m aiming to buy for my portfolio soon.

CleanTech Lithium

Soaring electric vehicle sales paint a bright picture for lithium demand in the years ahead. Chile-focused miner CleanTech Lithium (LSE:CTL) could prove a great way to profit from this theme.

Indeed, the penny stock leapt on Monday after significantly upgrading resource estimates for its gigantic Laguna Verde asset. The flagship mine is now said to contain 1.8m tonnes of the battery metal, while measured and indicated resources were lifted by 39% to 1.1m tonnes.

Chief executive Aldo Boitano has said that the upgrade “[provides] more confidence in the resource potential and further de-risking of the project after an extensive work programme this year”. The pre-feasibility study is now underway, with CleanTech seeking annual production of 20,000 tonnes at the project.

The AIM company is also working on two other assets, one of which — Francisco Basin — is also expected to yield resource upgrades this quarter.

Purchasing early-stage miners is always risky. Buying lithium specialists in Chile adds another layer of peril for investors, too. Earlier this year the country’s government vowed to nationalise important assets on economic and environmental grounds.

But CleanTech’s mission to produce ‘green’ lithium from brine projects reduces the nationalisation risk. Its Direct Lithium Extraction method negates the need for evaporation, thus cutting the impact on local environment. The projects will also be completely powered by renewable energy.

Gaming Realms

Online gambling is big business and has much more scope for growth, and especially so in North America. Mobile games developer Gaming Realms (LSE:GMR) is a penny stock I’d buy to capitalise on this opportunity.

The business creates, licences, and distributes entertainment software to some of the biggest names in the gambling sector like DraftKings, Entain, and 888 Holdings. Pre-tax profits here surged 224% in 2022 as the firm launched in six new markets in North America and Europe.

Gaming Realms’ most lucrative title is Slingo, which, as the name implies, combines elements of slots and bingo. It’s been a massive money spinner since its launch in 1996, and the company is launching new titles in the franchise to keep the revenues streaming it (it rolled out three more last year alone).

I especially like Gaming Realms because of its plans for rapid expansion in the US. Loosening regulations there mean the market is growing strongly, and analysts at Researchandmarkets.com expect it to expand at an annualised rate of 11.8% through to 2028.

That’s not to say that the regulatory environment will remain friendly for operators, of course. Any changes could have a significant impact on the company’s profits. But on balance I believe this looks like a good penny stock to own.

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

Young Asian man drinking coffee at home and looking at his phone
Investing Articles

2 recession-resistant UK stocks I’d buy and hold for a decade!

Our writer details two UK stocks she believes could still continue to perform well in a recession and not feel…

Read more »

Back view of blue NIO EP9 electric vehicle
Investing Articles

Down 31% this year! Is now the moment to buy NIO stock?

NIO stock has moved sharply downwards in the past couple of months. Christopher Ruane likes the business potential -- but…

Read more »

Smart young brown businesswoman working from home on a laptop
Investing Articles

2 dividend stocks I reckon could grow payouts for years to come!

This Fool is looking for dividend stocks and explains why these two picks could be primed to grow their payouts…

Read more »

Arrow symbol glowing amid black arrow symbols on black background.
Investing Articles

Should I buy, sell, or hold my Rolls-Royce shares at £3.50?

This Fool considers what he should do with his Rolls-Royce shares following the FTSE 100 company's excellent full-year results last…

Read more »

Couple working from home while daughter watches video on smartphone with headphones on
Investing Articles

With a spare £280, here’s how I’d start buying shares this March

Our writer reflects on what he has learnt on the stock market to explain how he would start buying shares…

Read more »

Businesswoman calculating finances in an office
Investing Articles

Are these expensive FTSE 100 stocks actually brilliant bargains?

Paul Summers takes a closer look at two FTSE 100 stocks that could recover strongly in time, despite already carrying…

Read more »

Investing Articles

What might the recent Aviva share price performance tell me as an investor?

Christopher Ruane looks at how the Aviva share price has performed over the past 12 months and considers whether he…

Read more »

Investing Articles

Down by a quarter, is the BT share price a steal?

The BT share price has more than halved in the past five years. What is holding it down -- and…

Read more »