You can't go wrong buying the best. If you buy stock in the best businesses, you can increase the odds of a higher return on your investment in the long run. If you pick the best business, you are on your way to increasing your stock market capitalization.
When you are looking to invest, you need to check out the stocks with strong prospects and the ones that have the best business models. These are the companies you should be thinking about buying.
Here are a few companies you can consider as your best picks to invest in.
Apple (AAPL)
The best-known and most iconic company for investors is Apple. No doubt, the company is one of the best-performing stocks of the last decade and, because of its dominance of the market in the tech sector, one of the best-performing stocks in the U.S. AAPL has risen more than sixfold from $22.50 at the start of the bull market in March 2000 to $120.50 today.
Pfizer (PFE)
One of the best business models is that of Pfizer, the big New York-based drug manufacturer that has more than 1.2 billion in sales and $43 billion in market cap.
But while Pfizer is the largest drug maker in the world, it also accounts for less than 1 percent of total drug market revenue. It makes up for this fact through its size, a large share of the largest and most profitable drugs, and its market share as a global seller of generics.
Pfizer shares climbed 18.8 percent in 2014 to a high of $40.98 per share. It was recently trading at $34.36, off 7.5 percent year to date.
Dover Chemical (DOV)
Another big business model is that of Dover Chemical, a maker of industrial chemicals. It is small, with about $300 million in sales, but it makes up for that by producing some of the best-selling products in the United States.
Dover's shares have climbed 37.6 percent in 2014 to a high of $34.60 per share. The company has been beaten down in recent weeks, but it still trades at 31 times earnings, a bargain for the potential to grow its business.
MM Mars (NYSE: MMM)
MM Mars is small enough that it can only be accurately measured by comparing it to the company that it came from. In that case, it compares to Mars, the world's No. 2 producer of chocolate. Mars, like MM Mars, is a private company owned by a single-family. Its shares have climbed 36 percent to a recent high of $60.98, a good example of why small is so appealing.
Netflix
There are plenty of reasons why you should invest in Netflix. Not only are they the company behind the incredibly popular movie streaming service, but they also have a streaming service for live TV shows. Netflix is a great investment because it makes money from both TV and movie services. This provides stability for investors. Plus, investors know that Netflix has proven itself and that it’s more than capable of providing stable and growing revenues in the future.
CVS Caremark
Another of the best stocks to invest in that is for beginners is CVS Caremark. This company is very similar to A. O. Smith. They make faucets, and they also provide health care and pharmacies. This means that investors can expect a lot of growth. CVS Caremark is owned by CVS, which has been going strong since the early 1990s. This is a company that is continuing to grow and succeed because it has very good policies.
