Stocks to buy

The benchmark S&P 500 index experienced losses in 11 of 47 years between 1975 and 2022. That alone proves the stock market generates far more returns than losses. Yet investors tend to earn returns that are only about one-third of the stock market’s total return. This is because investors tend to jump in and out of stocks, change their minds frequently, and even act on emotion. Instead, what many investors may want to do is buy and stay put with some of the market’s best long-term stocks, such as:

Best Long-Term Stocks: Toyota (TM)

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Tesla (NASDAQ:TSLA) is one of the top electric vehicle stocks on the market. But Toyota Motor (NYSE:TM) may be about to catch it. After all, Toyota is the world’s biggest vehicle manufacturer.  In 2022, while Tesla produced 1.3 million vehicles, Toyota produced 10.5 million — and just announced that it will focus its resources on developing a full line-up of electric vehicles and the batteries needed to power them.

In fact, Toyota said it plans to sell 3.5 million battery-powered vehicles a year by 2030 through a new electric vehicle business unit called “BEV Factory.” The automaker added that it is aiming for a driving range of 1,000 kilometers on a single battery charge for all its future electric vehicles, which is nearly double the 570 km range of Tesla’s Model 3 sedan. The company is also developing solid-state batteries for its EVs. New CEO Koji Sato is making electric vehicle production his central focus, which should worry other automakers. TM stock is up 20% so far this year. The stock also has a low price-earnings ratio of 12 and pays a rich dividend yield of 2.58%.

Best Long-Term Stocks: Starbucks (SBUX)

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Starbucks (NASDAQ:SBUX) does one thing and does it extremely well: sell coffee. Today, Starbucks is the biggest restaurant chain in the world with more than $30 billion in annual revenue, more than 35,000 outlets worldwide, and an army of 400,000 employees. Starbucks is bigger than McDonald’s (NYSE:MCD) in terms of its annual sales. That’s impressive when one considers that Starbucks’ menu is much more limited and static than McDonald’s and other quick service restaurants.

In addition, Starbucks’ success proves the enduring power of coffee. Surveys have found that nearly half (49%) of Americans drink three to five cups of coffee each day. And 39% of Americans say they enjoy Starbucks coffee the most. The national coffee addiction helps to explain Starbucks’ robust earnings. The Seattle-based company is also huge globally, enjoying a major presence in China, the world’s most populous country with 1.4 billion citizens. Starbucks’ global reach should help power its sales for years to come. SBUX stock has gained 35% in the past 12 months and is up 76% over five years.

Best Long-Term Stocks: Broadcom (AVGO)

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It seems that all the news concerning microchip and semiconductor companies revolves around players such as Nvidia (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD). Too often the discussion around chipmakers leaves out another major player, Broadcom (NASDAQ:AVGO). This is a shame as Broadcom has quietly outperformed many of its peers for years now. AVGO stock is up 65% in the past year and has risen more than 200% over five years.

Broadcom’s chips are used to power everything from wireless networks and data centers to artificial intelligence (A.I.) applications. The company is currently riding high on news that antitrust regulators in Europe plan to approve its $61 billion acquisition of cloud computing firm VMware (NYSE:VMW). The purchase will further diversify Broadcom’s technology and its uses, making it a great strategic move on the company’s part. AVGO stock also pays a decent dividend that yields 2.14%, which is rare among chipmakers and tech companies.

Ralph Lauren (RL)

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Fashion company Ralph Lauren’s (NYSE:RL) brand and stock have held up better than most retailers during the volatility of the last 18 months. During the past year, RL stock has grown 27%, and it has increased 75% since 2017. The company targets a more affluent clientele with its polo shirts and other preppy wear, and that has made Ralph Lauren more resilient to economic downturns as high net-worth individuals tend to curb their spending last and only in extreme situations.

Like other stocks on this list, Ralph Lauren benefits from being a truly international company, with sales in every region of the globe. In its most recent earnings print, Ralph Lauren reported that its China sales rose 4% during the quarter, helping to offset weakness in the U.S.  The company is also much more than its clothing line. Ralph Lauren has also expanded into eyewear, bedding, fragrances, and cosmetics. Management has said the goal is to be a “full luxury” company.

Apple (AAPL)

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It remains to be seen if Apple’s (NASDAQ:AAPL) new $3,500 augmented reality headset will be a hit with consumers. Regardless, the technology giant has many other products to continue driving its sales for years to come, including the iPhone, Macbook, Apple Watch and its relatively new financial and streaming ventures. The enduring popularity and strong sales of its products helps to explain why AAPL stock recently closed at an all-time high above $183 (on a split-adjusted basis).

Apple’s market capitalization is back to approaching $3 trillion, according to data from FactSet, and the share price can be expected to continue running higher for years to come. Key to Apple’s enduring success has been strong brand loyalty among consumers and its ability to constantly update its technology. Apple is one of the few companies that issue new versions of its products every year without fail. Investors who own AAPL stock also benefit from the fact that the company buys back more of its own stock than any other publicly traded entity.

McDonald’s (MCD)

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McDonald’s is an evergreen stock. A true set-it-and-forget-it investment. Shares of the Golden Arches can reliably be expected to trend higher over the long-term. Investors looking for stocks with durable competitive advantages and a wide moat around them should consider MCD stock. Today, McDonald’s is the third largest quick-service restaurant chain in the world by revenue with nearly $25 billion in annual sales. That’s a lot of hamburgers and fries.

In the last 12 months, MCD stock has risen 20% and the company’s share price is up 75% through five years. Stockholders also get a quarterly dividend that yields 2.11% for a payout of $1.52 a share. In late April, McDonald’s reported earnings that once again beat Wall Street forecasts on the top and bottom lines. Due to increased traffic and higher prices, McDonald’s reported earnings per share of $2.63  versus $2.33 expected. Revenue came in at $5.90 billion compared to the $5.59 billion forecast. Rock solid.

Alibaba (BABA)

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Investing in China is not without risk. However, the upside potential might make it worthwhile to take a position in a major Chinese tech firm whose long-term growth prospects are huge. A tech firm such as Alibaba (NYSE:BABA). Dubbed the “Amazon of China,” Alibaba is an e-commerce giant that also has tentacles in cloud computing, online payments, and AI. BABA stock took a drubbing over the past few years as Chinese authorities in Beijing cracked down on publicly traded companies, notably tech firms. However, the worst looks to now be over.

In recent months, several notable investors have been taking positions in Chinese stocks, including Michael Burry of “The Big Short” fame. In May, it was revealed that Burry had doubled his holding of BABA stock. Alibaba, along with fellow Chinese tech firm JD.com (NASDAQ:JD), is now the largest holding in Burry’s fund, accounting for 20% of his portfolio. Clearly, Burry and others are betting on the long-term growth potential of China’s major companies.

On the date of publication, Joel Baglole held long positions in NVDA and AAPL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines

Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.