Long term investing is a popular investment strategy that intelligent retail investors use to grow their money. Benjamin Graham, the father of value investing, defined intelligence in investing as someone who does not try to time the market but values the 'time in the market' by picking investment options that suit you best and not investing on hearsay.
While looking for the best stocks to buy in India for long term, along with fundamentals and qualitative aspects like management quality and efficiency, the financials have to be viewed from a long term perspective. Long term is usually more than 5 years for investors.
This blog has compiled a list of the best Long Term Investment Stocks for 2023.
Best Stocks to Buy in India for Long Term in 2023
Here is a list of the best share to buy for long term-
S.No. | Company | Industry |
1. | Reliance Industries | Multinational Conglomerate |
2. | Tata Consultancy Services (TCS) | Information Technology |
3. | Infosys | Information Technology |
4. | HDFC Bank | Banking |
5. | Hindustan Unilever | FMCG |
Factors to Consider Before Choosing the Best Stocks to Buy in India for Long Term 2023
Here are some factors to look at before you invest in stocks for an extended period-
The Market Capitalization of the Stocks Should be at least More Than Rs 10,000 crores
Simply put, the market cap is the market value of the company. It is the price at which you can buy all the company's outstanding shares. It is calculated by multiplying the number of outstanding shares by the cost of each share trading in the market. Since the stock price is a dynamic number, the market cap also changes frequently.
It tells the size of the company. More prominent companies with higher m-caps have already reached a particular stage and are less prone to volatility with lower risk levels.
Hence for assured and less volatile returns, a high market cap is an excellent measure to single out companies and select the long-term stock to invest in.
Profit Growth for Three Years Should be More Than 10%
While operating profit takes only the core business into account, net profit takes all aspects of a company. It also accounts for costs such as taxes and interest expenses for an outstanding debt and reflects the actual earnings of the entire business.
The net profit comes at the bottom of the profit statement after accounting for all costs and expenses, hence the bottom line.
Best Long Term Stocks India: Overview
The following are some of the choices to invest in for the long term-
1) Reliance Industries
Reliance Industries Limited is an India-based company which operates in the Oil to Chemicals (02C), Oil and Gas, Retail, Digital Services, and Financial Services segments.
2) Tata Consultancy Services (TCS)
Tata Consultancy Services Limited (TCS) is an India-based company engaged in providing information technology (IT) services and digital and business solutions. It is one of the safest share to buy in India.
3) Infosys
Infosys Limited is engaged in consulting, technology, outsourcing, and next-generation digital services. It is a top-notch global leader in the digital services and consulting domain.
4) HDFC Bank
HDFC Bank Limited (the Bank) is an India-based private sector bank. The Bank caters to a range of banking services covering commercial and investment banking on the wholesale side and transactional/ branch banking on the retail side.
5) Hindustan Unilever
Hindustan Unilever Limited is an India-based consumer goods company. It is a subsidiary of a British company named Unilever. It is headquartered in Mumbai and is one of the most renowned FMCG companies across the globe. Hence, its shares are often a top choice of investors.
Additional Things to Remember
- Pick a few financials, look at qualitative aspects like management quality, ethics, and CSR activities, and assess them based on historical information over three years or more.
- According to their market cap, filter companies pick leaders from respective industries that have shown proven long-term sustainable performance.
- Align your risk level with the risks of the company. Conduct a business and industry analysis to understand industry-specific factors and risks.
- Invest in a company only if you understand it and what it does.
- If you plan to invest in any of the above-listed or any more stocks, you should consider using a Brokerage Calculator. It will help you compute the brokerage fee that a broker acquires for facilitating trade.
Conclusion
This was the list of the best long term stocks to buy in 2023. Time lets your returns compound over time. If you do not withdraw your returns or interest earned midway, you compound returns on an accumulated number rather than just your principle; your returns will compound manifold.
Time helps us rule out volatility and short-term risks. If you invest Rs 1,000 in year one and earn 10% returns on it, your amount at the end of year one will be Rs 1,100. If you let your money compound over time and do not redeem your returns, next year, you will get returns of Rs 1,100.
Now do this exercise for more significant amounts of investment and longer. This is because the essence and magic of any investment are in the long term.
Explore the Share Market Prices Today | |
Yes Bank Share Price | Suzlon Share Price |
Tata Power Share Price | Adani Power Share Price |
SAIL Share Price | IEX Share Price |
TTML Share Price | Axis Bank Share Price |
IOC Share Price | BEL Share Price |
Disclaimer: This blog is solely for educational purposes. The securities/investments quoted here are not recommendatory.
To read the RAdisclaimer, please clickhere
Research Analyst - Bavadharini KS
| Explore Best Stocks from Other Sectors | |
| Best Fertilizers Stocks | Best Banking Stocks |
| Best Value Stocks | 5 Best Stocks to Invest |
| Best IT Sector Stocks | Best Stocks For Options Trading |
| Best Small Cap Stocks | Best Energy Stocks |
| Best Stocks to Invest Under Rs. 20 | Best Penny Stocks |
| Best Mid-Cap Stocks | Best Logistics Stocks |
I bring forth a wealth of expertise in the realm of long-term investing, marked by a profound understanding of financial markets and strategic investment principles. My commitment to this field is evident through my extensive research, continuous monitoring of market trends, and a deep appreciation for the nuances that shape successful investment strategies.
Now, delving into the article on long-term investing in Indian stocks for 2023, it covers essential concepts that resonate with the principles of intelligent investing. Benjamin Graham's influence, as the father of value investing, is palpable in the emphasis on avoiding market timing and focusing on the 'time in the market.' This echoes the philosophy that successful investors prioritize the long-term growth potential of their investments over short-term market fluctuations.
The article identifies key factors for selecting the best long-term investment stocks in India for 2023, including a compilation of notable companies such as Reliance Industries, Tata Consultancy Services (TCS), Infosys, HDFC Bank, and Hindustan Unilever. The selection criteria incorporate both qualitative aspects, such as management quality and efficiency, as well as quantitative factors like market capitalization and profit growth over three years.
The concept of market capitalization is elucidated as a measure of a company's size, with a focus on stocks having a market cap exceeding Rs 10,000 crores. The rationale is that larger companies with higher market caps are often more stable and less susceptible to volatility, aligning with the goal of achieving assured and less volatile returns for long-term investors.
Profit growth is highlighted as another critical metric, emphasizing a requirement for three years of profit growth exceeding 10%. The distinction between operating profit and net profit is presented, emphasizing the latter as a more comprehensive indicator of a company's overall earnings by accounting for all costs and expenses.
The article wisely advises investors to consider additional aspects such as qualitative factors (management quality, ethics, and CSR activities) and historical performance over three years or more. The emphasis on aligning risk levels with those of the chosen companies and conducting thorough business and industry analyses reflects a comprehensive approach to long-term investing.
Furthermore, the mention of a Brokerage Calculator underscores the importance of understanding the costs associated with trading, promoting a more informed investment decision-making process.
In conclusion, the article reinforces the idea that time is a crucial factor in successful long-term investing. By allowing returns to compound over time, investors can mitigate volatility and capitalize on the compounding effect for enhanced wealth accumulation. The list of best long-term stocks for 2023 serves as a valuable starting point, with a clear call to prioritize the magic of long-term investments over short-term gains.
Please note that the content of the article is solely for educational purposes, and the securities/investments mentioned are not recommendatory, as indicated in the disclaimer.
