Picking the best FTSE 100 stocks to buy and hold for a decade is a complicated task. That’s because the world is not static. Everything, from technology to consumer tastes, is changing fast and can disrupt the prospects of any company.
This article analyzes three stocks that could be potentially good holds over the next decade. While a lot can change in this period, these stocks have what it takes to give investors value over the next decade.
Best 3 UK Stocks To Buy And Hold:
- Argo Blockchain (ARB)
- Glencore (GLEN)
- DS Smith (SMDS)
1. Argo Blockchain (ARB)
A cryptocurrency focused company
Blockchain technology is changing the world and that’s a good reason to bet on Argo Blockchain (ARB). This company is involved in crypto mining and leveraging the power of quantum computing to come up with next-generation blockchain solutions.
One reason why Argo is a top buy for the next 10 years is that it is involved in Bitcoin mining. This means if the prices of Bitcoin potentially go up, then the revenues it makes from selling the mined coins will rise too.
There are a number of factors that point to the potential for Bitcoin rising significantly over the next decade. The biggest one is the supply shock that will come with the halving scheduled for 2024.
Previous halvings have led to a huge rally since demand starts chasing a much-shrunken number of new coins. Now that Bitcoin has gone mainstream, and has strong demand amongst institutional investors, a mining reward cut from 12.5 BTC to 6.25 BTC could see the value of this crypto rise significantly.
By extension, it will play into the revenues of companies that mine and hold Bitcoin in their books. It’s a factor that makes Argo Blockchain a solid bet over the next decade.
Then there is the fact that decentralization is taking center stage in society. Blockchain technology is revolutionizing how people create, measure, and trade value. It is a technology that promises to change everything from finance to supply chains.
For companies like Argo Blockchain that are leveraging this technology to offer next-gen solutions, the future is bright. If the company comes up with a solution that transforms one aspect of society in a drastic way, the impact on its share price could be huge.
The best part is that this company has the resources to take advantage of the many opportunities that blockchain technology has to offer. For starters, it has quarterly revenue growth of 1,279.20%. This means it is flush with cash, cash that can be used for innovation.
The company’s balance sheet looks pretty good too. Argo Blockchain has a current ratio of 1.84, and an operating cash flow of GBP 1.04 million.
As such, besides being able to service all its debt obligations comfortably, Argo Blockchain has the room to borrow if the need arises.
Good books, and being in a disruptive industry that is changing the world spells good tidings for Argo Blockchain long term. It makes a lot of sense to hold this stock over the next decade.
2. Glencore (GLEN)
An EV Battery Materials company
Glencore (GLEN) is the second UK stock that makes a lot of sense to buy and hold over the next decade. That’s because it is pivoting into what is about to become a top growth industry in the world, and that’s electric vehicles.
The company recently announced that it had bought a stake in Britishvolt, a company that is building a battery Gigafactory in the UK.
The Gigafactory, once complete, will have the ability to supply batteries to 300k electric vehicles a year.
This deal is potentially good for Glencore in two ways. First, EV is about to get big because there is a lot of policy support for tech all around the world.
For instance, the UK is set to ban the internal combustion engine in 2030. Many other countries have similar plans and by 2040, pretty much all cars on the road will be electric.
This means the value of battery makers such as Britishvolt will rise long term. As its value grows, so will the value of Glencore’s stake in the company.
The second way that Glencore is set to benefit is through the supply of Cobalt. The company already agreed to be a long-term supplier of Cobalt to BritishVolt Gigafactory.
The company is also a supplier of this material to other auto companies around the world. With the demand for Cobalt only set to grow in the foreseeable future, Glencore’s revenues are in a good position to grow long term.
Glencore’s books look pretty good too. The company has a current ratio of 1.08 and operating cash flows of GBP 8.33 billion. This means it is stable and can comfortably borrow at good rates if the need arises.
A combination of the above factors makes it an excellent stock to hold over the next decade.
3. DS Smith (SMDS)
A packaging materials company
E-commerce is growing, which makes betting on DS Smith (SMDS) over the next decade worth it. The company supplies packaging materials to e-commerce companies, among others.
Given that eCommerce companies need these materials for deliveries to their customers, demand for this company’s products is only set to grow long term.
While many other companies provide these services, DS Smith is one of the oldest in the market. This means it has the necessary synergies that can help it beat the competition in the fast-growing e-commerce market.
Such is evident in the innovations that the company is making to serve the market better.
Two months ago, it announced that it was moving towards the use of recycled materials in the manufacture of packaging boxes. Not only is this environmentally friendly, but it is also a factor that could endear it to businesses that are increasingly conscious of their carbon footprint.
Another reason to bet big on DS Smith is that it supplies packaging materials to top e-commerce companies like Amazon. These are dominant industry players and will anchor demand for DS Smith product demand long term.
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