5 stocks for an uncertain future

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    Uncertainty is part of life and investing. Long-term investors, however, remain cool in the face of this uncertainty. You avoid knee-jerk reactions and rely on stocks for the long term.

    Warren Buffett said it best, «Be fearful when others are greedy and greedy when others are fearful.» Of course, Buffett is not advocating true greed. Rather, it encourages investors to take up investment opportunities when others are afraid to pursue them.

    That’s why we’ve put this short list of stocks together for an uncertain future. There are certainly a lot of strangers out there. But that shouldn’t stop long-term investors from looking at the market and picking winners.

    Four stocks are on this list because they have weathered certain uncertainties – like the pandemic – very well. And one did it because his goal is to fight a great unknown: climate change.

    Regardless of your risk tolerance, you are likely to find a few companies on this list to add to your portfolio and hold for years to come. No matter what the uncertainties ahead of you, you’ll be glad you grabbed the stocks when you did.

    Top 5 stocks for an uncertain future

    1. Amazon
    2. Brookfield Renewable Partner
    3. Visa
    4. Apple
    5. Costco Wholesale

    Amazon (NASDAQ: AMZN)

    • Amazon (NASDAQ: AMZN)
    • Price: $ 3334.34 (as of Dec 30, 2021)
    • Market capitalization: $ 1,711T

    When the pandemic officially reached the United States in early 2020, bans and social distancing turned most companies on their heads. Even Amazon was thrown for a loop at times. But it recovered quickly and has since proven that even large companies can quickly adjust to uncertain circumstances.

    Instead of staying on course, Amazon saw the unique opportunity it has as both the largest online retailer and one of the largest delivery companies in the United States. Delivery stations and retail locations.

    The company’s recent growth has fueled Amazon’s sales and profits even faster than before the pandemic. That, in turn, has resulted in the company’s share price more than doubling the earnings of the S&P 500 since early 2020.

    As with any large company, there are many things Amazon could do better. But the big takeaway from the past two years is that Amazon has been a massive job creator in an economic era very uncertain for millions of Americans.

    The company’s ability to focus on what it does best during the pandemic helped many people keep their jobs – or get new ones – and also brought impressive profits to the company’s shareholders.

    Brookfield Renewable Partners (NYSE: BEP) (NYSE: BEPC)

    • Brookfield Renewable Partners LP (NYSE: BEP)
    • Price: $ 35.09 as of December 30, 2021
    • Market capitalization: $ 16.607 billion

    Insecurity has many faces. One of the biggest examples of this right now is climate change. Governments and companies around the world are investing more than ever in decarbonization efforts – $ 100 trillion over the next thirty years.

    That’s a mind-boggling number to turn around. But as more attention is paid to climate change, a lot of money is being spent to combat it. This is where the renewable energy company Brookfield Renewable Partners comes in.

    The company has over 6,000 systems for generating renewable energy – with wind, solar and hydropower – and uses them to combat climate change.

    The company estimates that 70% of global greenhouse gas emissions can be attributed to electricity generation in the energy sector. This means that changing electricity generation – from fossil fuels to green energy – will have a huge impact on reducing greenhouse gas emissions.

    It can be difficult to determine precise timetables for climate change scenarios. But there is no denying that the move to green energy is already well underway. And Brookfield is firmly in the mix of this transition.

    For investors worried about greenhouse gas emissions and looking for a company that can make a difference, Brookfield could be a great choice.

    Visa (NYSE: V)

    • Visa (NYSE: V)
    • Price: $ 217.87 as of December 30, 2021
    • Market capitalization: $ 459.39 billion

    Financial services are almost always in demand, no matter what happens in the world. Because of this, Visa payments processing juggernaut is a breeze for this inventory.

    The company processed nearly 165 billion transactions in fiscal 2021, an impressive 17% increase over the previous year. Visa’s vast global reach in the payments space means investors can bet that the company won’t be sidelined anytime soon, even if financial technology (fintech) moves fast.

    Even better, Visa continues to innovate to keep up with the changing fintech market. For example, the company has started using the Ethereum blockchain to make secure and efficient settlement payments for digital currencies.

    Visa is already firmly established as a leading provider in payment processing. So the company should be able to safely enter the fast growing cryptocurrency market without all of the risks that some fintech companies have.

    Investors will be pleased to hear that Visa’s revenue increased 10% in fiscal 2021, while net income increased 13% and payment volume increased 16%. Management said Visa’s business performed well throughout the year, even during a «relatively turbulent fiscal year 2021 …».

    The company’s long-term price gains also indicate the stability of Visa. Its stocks have outperformed the S&P 500 slightly over the past five years and outperformed the benchmark by more than 2.5 times over the past decade.

    Apple (NASDAQ: AAPL)

    • Apple (NASDAQ: AAPL)
    • Price: $ 177.57 as of December 30, 2021
    • Market capitalization: $ 2,924T

    Some companies are so big, stable, and profitable that it makes a lot of sense to have them in your portfolio – especially during tough times.

    Sure, Apple’s stock price goes up and down like any other stock. But the tech giant has a track record of turning a profit despite tough economic times. Keep in mind that Apple stock saw a staggering surge between 2007 and late 2021 – a period that spanned both the Great Recession and the COVID-19 pandemic 5,200%.

    Just think about it for a second. In two very uncertain economic times in the past fifteen years, Apple has been able to weather the storms, continue to grow its business, and Bring huge profits to investors.

    Of course, Apple is not sacrosanct. Like many other companies, it is currently dealing with limitations in the microchip supply chain. There is also pressure to bring new innovative products to market that are as transformative as the iPod, iPad and iPhone.

    But Apple has proven that releasing new products that consumers want, along with maintaining a long-term perspective, can help this tech giant not only stay relevant in the fast-moving tech space, but also be a fantastic investment.

    Costco Wholesale (NASDAQ: COST)

    • Costco Wholesale (NASDAQ: COST)
    • Price: $ 567.7 (as of Dec 30, 2021)
    • Market capitalization: $ 250,056Billion

    When the economy is in turmoil and inflation rises, guess what else people need? Toilet paper. And even as the COVID-19 pandemic grew around the world, people still got into their cars and drove to Costco for groceries and other necessities.

    On the flip side, when the economy is strong and people are more inclined to spend money (rather than save it), Costco also has plenty of products to capitalize on that sentiment. Think big screen TV sales.

    The point is, it doesn’t matter what is happens – a booming economy or a global pandemic – Costco members continue to shop in-store.

    The company currently operates more than 800 warehouses worldwide. About a third of that is outside of the United States. This increases the company’s commitment to the international market.

    In fiscal 2021, Costco’s like-for-like sales grew nearly 15% in its U.S. stores, 20% in Canada, and approximately 20% in its other international locations.

    And while this member club is always focused on in-person shopping, Costco is also growing its e-commerce business. The segment’s revenue rose 44% in fiscal 2021.

    The only downside to shopping online at Costco is that there are no free food samples. Sigh.

    If you’re looking for a stable investment, Costco stock is the place for you. The company’s share price has more than doubled the earnings of the S&P 500 in the past five years.

    That is no guarantee that its stock will outperform the market in the years to come. But since Costco’s companies have proven it can thrive in very uncertain times, it is likely that investors will not be disappointed with this stock in the long run.

    How do you plan financially for an uncertain future?

    While these stocks are all excellent choices for planning an uncertain future, investing in the stock market is not the only way to prepare yourself. In our new course, Financial Freedom in Uncertain Times, you’ll find detailed lessons, exercises, and interviews to prepare you for whatever comes next.

    Financial freedom in uncertain times

    John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Chris Neiger owns Apple. The Motley Fool owns shares of and recommends Amazon, Apple, Brookfield Renewable Corporation Inc., Costco Wholesale, and Visa. The Motley Fool recommends the following options: long calls in January 2022 at $ 1,920 to Amazon, long calls in March 2023 at $ 120 to Apple, short calls in January 2022 at $ 1,940 to Amazon, and short calls in March 2023 at $ 130 to Apple. Millennial Money is part of The Motley Fool Network. Millennial Money has a disclosure policy.

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