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In the stock world, many look for long-term investment opportunities that offer significant returns and stability.
While long-term investing requires holding stocks for very long periods to capitalize on compounding interest, growth and dividends, short-term investing typically means buying and selling stocks within days or months to make quick profits.
For varied reasons, investors focused on long-term growth gravitate toward companies like Palantir, NVIDIA, Rocket Lab (RKLB) and so on.
While NVIDIA usually appeals to those looking to gain from future technologies, Palantir attracts investors who see its potential in government and enterprise markets. On the other hand, RKLB is a space exploration stock and draws near investors seeking to take advantage of the rapidly expanding aerospace industry.
In a recent Reddit post, an investor shared his stock allocation of $15K toward building long-term wealth. So far, he has invested $7,000 in 50 NVIDIA shares, $2,600 in 100 Palantir shares and $480 in 100 RKLB shares.
With $4.9K remaining, he’s now reached a critical point: should he strengthen his positions or diversify into other promising stocks?
“I am undecided if I should top off any of the ones I just purchased today (thought about increasing RKLB to 1000 shares if things look bright for the future) or consider diversifying further. I have also been looking at AVGO, ASML, MSFT, AAPL, TSLA, AMD and GOOG,” he said.
Faced with this concern, the investor decided to start a thread in Reddit’s r/stocks community, looking for advice. Let’s analyze the comments to determine the recommendations and strategies the community suggested.
Reddit Shares Strategies for $4.9K Long-Term Stock Allocation
MSFT and GOOG are Reliable Long-Term Choices
Many commenters recommended Microsoft as a resilient, diversified and growth-focused company. Some even likened it to an entire tech ETF because of its dominant market position.
“MSFT is a win for me. Basically a tech ETF,” a comment reads.
In reply to this comment, a Redditor expressed total agreement, highlighting the stock’s resilience during market downturns, mainly due to its cloud and subscription model.
“2nd this. Decent upside and I’d argue probably one of the most resilient of the magnificent 7 if things were to turn, the cloud and subscription-based business software being their two biggest money spinners,” the reply said.
A third Redditor suggesting MSFT mentions that the company has secured a good spot in the essential business software market.
“Microsoft has a pretty big moat in the form of essentially being the de facto base product for every single business in the country. The office suite is going nowhere,” he said.
Many commenters also suggested investing in Google because the company has a proven track record and is considered a safe bet for long-term holding.
“My favorite right now long term would be Google. They are just the best positioned to really benefit from the AI craze over the next 10+ years,” a Redditor said.
“$GOOGL has the most potential upside,” another comment reads.
Amazon and NVIDIA received plenty of support in the comments, with people recommending them as strong long-term investments because of their market control.
“Amazon is my long-term buy-and-forget stock,” a Redditor wrote.
One comment highlights Amazon’s myriad of growth opportunities due to how big and robust the company is.
“Amazon with a huge moat and several growth levers with how big and defensible the business is. No misses there,” the comment reads.
And another commenter suggests the investor sells his RKLB and buys NVDA.
Many Redditors seemed to value dividend-yielding stocks in the comments, emphasizing the fact that these stocks generate passive income and are a great choice for retirement planning.
“AVGO is great for the long-term; a better dividend than most other tech stocks and the dividend gets increased substantially every December. AVGO dividends will be a large part of my future retirement,” a Reddit member commented.
Pepsi and Coca-Cola were also mentioned as good choices.
“Set it and forget it. Coke or Pepsi... I picked Pepsi as I liked the snacks idea. Has a dividend,” a comment says.
Another Coca-Cola supporter mentioned that Warren Buffet loves the company and the stock’s price keeps increasing. Moreover, the stock pays dividends; according to him, it will be in the first spot for years.
“Well, Warren Buffet loves Coke and they keep going up. It’s cheap and has good dividends. They’re going to be #1 for your lifetime,” he said.
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