The FAANG stocks (Facebook, Apple, Amazon, Netflix, and Google) have been nearly indestructible over the past two decades as these internet goliaths successfully cornered their respective markets. Almost every single investor wishes they could go back a decade or two and invest their life savings into any of these companies. But, there’s no point lamenting the past. The question for today’s investors is: what companies will dominate the next decade in a similar fashion? 

Let’s dive into the 6 best stocks to hold for the next decade that aren’t a part of the “FAANG” crew of stocks (I excluded Microsoft as well, even though they’re not “technically” FAANG).

Celsius (CELH): Caffeinating a new generation ☕

Today’s younger generations are drinking less coffee, according to fairly recent Ipsos poll:

“While three in five Americans are still regular coffee drinkers, Americans’ weekly coffee consumption has decreased in the past two years. Among the generations, Baby Boomers most likely to be weekly coffee drinkers and Gen Z the least.”

So, they might not be drinking as much coffee as their parents did. But, Gen Z will undoubtedly need something to get their daily kick (besides adderall of course). Enter: Celsius. 

Celsius is a new energy drink that has surged in popularity, mainly for being considered healthier compared to industry Titans like Monster and Red Bull. Now, is Celsius actually any healthier than a Red Bull? I have no idea. That’s not what I’m debating and, honestly, it doesn’t matter. Celsius simply has the appearance of being healthier which is all that matters for most people. Sales have been skyrocketing quarter after quarter for this young energy bev biz:

• Sept 2023 revenue: $384.76m (+104% YoY)
• June 2023 revenue: $325.88m (+111% YoY)
• March 2023 revenue: $259.94m (+94% YoY)

But, this drink is perfectly poised to take off over the coming months thanks to a new partnership with PepsiCo. From Celsius’ website:

“PepsiCo & Celsius Announce Long-Term Distribution Agreement and Investment“

The distribution agreement initially transitions Celsius’ current U.S. distribution to PepsiCo’s best-in-class capabilities.  As part of the transaction, PepsiCo will also make an investment in Celsius in support of its growth agenda and will nominate a director to serve on Celsius’ Board of Directors.”

Money. Through this partnership, Celsius will receive:

1. Access leading North America DSD network with meaningful retail and shelf space upside.

2. Highly efficient and cohesive route-to-market in North America, with additional global expansion opportunities.

This distribution partnership means that you’re about to start seeing Celsius everywhere: CVS, 7/11, Walmart, college campuses, gyms, vending machines, etc. This will give Celsius a legitimate way to compete against Red Bull and Monster, the two companies dominating the industry. But, again, younger consumers are increasingly health conscious and Red Bull and Monster are about as unhealthy as they come. Celsius, on the other hand, uses a “proprietary MetaPlus® formula, including green tea with ECGC, ginger and guarana seed, turns on thermogenesis.”

My other analysis for Celsius is a bit less formal. I drink a Celsius almost everyday and plenty of other people that I know do the same. When in doubt, it’s usually a good idea to invest in companies whose products you consume on a daily basis – especially when that company sells a legal drug.

Tesla (TSLA): But not for the reason you think 🤖

Tesla is one of the hottest electric car companies today. It also has an expanding network of EV chargers as well as charging roofs and other lines of business. But, none of that is going to help Tesla dominate over the next decade. Instead, Tesla’s future is in robotics. Specifically, the Tesla humanoid.

Humanoids are one of those technologies that sound like a far off, futuristic tech. Once we have robots walking the street, we’ll literally be living in Terminator or I, Robot realities. But, humanoids are disgustingly close to becoming reality and Tesla is poised to be the leader in this space.

To start, check out the update on Optimus – Tesla’s humanoid. This video was posted in December 2023. It’s basically an early stage Terminator and it’s shocking that more people aren’t talking about it. Most investors assume that this technology is still 10-20 years away from being commercialized. But, humanoids are closer to 5-10 years out. Maybe even less.

The bulk of my Tesla humanoid knowledge has come from tuning in to Dumb Money Live’s YouTube Channel as well as following along with their other social channels. Dumb Money founder, Chris Camillo, is especially bullish on Tesla and anticipates that the stock will start to rally around humanoids over the next 12 months and change. 

I’d suggest watching Dumb Money’s episodes on Tesla if you want to learn more about why they’re one of my top stocks to hold for the next decade.

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Nvidia (NVDA): The brains behind new tech 🧠

Nvidia had a stellar 2023 and surged a whopping 230% during the course of the year. Right now, the main conversation around Nvidia is whether or not it’s overvalued. This AI leader currently has a market capitalization of $1.8 trillion as of 2/12/2024. But, the company brought in just $18.12 billion last quarter (I’m using the word “just” lightly). For reference, Meta Platforms has a smaller market cap of $1.22 trillion, despite making nearly twice as much money as Nvidia did last quarter ($34 billion). 

Either way, it doesn’t really matter if Nvidia is currently over valued as it’s definitely a hold for the upcoming decade. In fact, a reporter from the Wall Street Journal compared Nvidia to an early-stage Apple (and I wholeheartedly agree with the sentiment): 

“An investor once asked us in 2007, ‘why won’t every person need an iPhone?’ Another recently asked us ‘why won’t every server need to be accelerated?’ The answer to each is a ‘yes,’ which underpins strong growth through 2030,” he added.

Costco (COST): A cost of living play 

The United States is increasingly turning into a world of “Haves” and “Have Nots” as income inequality continues to surge. As the cost of living continues to rise, it makes more and more sense to shop at Costco and secure bargain prices. In other words, as the world gets more expensive, a membership to Costco becomes more valuable.

Yes, there are plenty of “discount” places to shop like Dollar Tree, Walmart, or even Amazon. But, Costco has a much stronger brand compared to these three. These stores all carry a reputation for selling incredibly cheap products (except for maybe Amazon). Costco, on the other hand, is known for selling high-quality goods. It just sells them to you at wholesale prices which means you have to buy in bulk. 

Costco might not be the growth machine that a company like Celsius or Tesla is. But, it’s hard to imagine a future where people aren’t still singing Costco’s praises and renewing their annual membership.

Brookfield Senior Living (BKD): Housing an aging population

The Baby Boomer generation – born between 1946 to 1964 – is in the process of retiring en masse. This trend is so significant that the Population Reference Bureau called it 

“one of the most significant demographic trends in the history of the United States.” 

According to the Population Reference Bureau’s (PRB) report “Aging in America:

“The number of Americans ages 65 and older is on course to more than double from 46 million today to over 98 million by 2060, while the 65-and-older age group’s share of the total population will rise to nearly 24 percent from 15 percent.”

The United States is underprepared to house this aging generation and is drastically trying to catch up. According to Globest, demand for senior housing has outpaced new supply for nine consecutive quarters in primary markets. But, a separate study from the NIC estimates that for every 10 units of senior housing that the industry added in 2023, 28 more units were occupied. In other words, the US can’t build new senior living facilities fast enough. This is where Brookdale comes in.

Brookdale is currently the largest operator of senior housing in the United States, with over 60,000 residents. Over the coming decade Baby Boomers will continue to retire en masse and will need assisted living facilities to transition to. Brookdale, as the nation’s largest provider of senior housing, should enjoy unprecedented demand.

TQQQ: Triple leverage is the new index fund

The TQQQ is a fund that uses triple leverage while tracking the total return of the stock market. So, if the market returns an annual average of roughly 10% then you can expect the TQQQ to return 30%. Or, if the market has a banger year and returns 30% then the TQQQ will ring in 90%. But, this also works in reverse. If the market drops 10% then your portfolio will get hit by 30%. 

In theory, the market always trends up and right over the long run. So…is the TQQQ a cheat code for average 30% annual returns? I already wrote about this topic at length in my post “Triple Leveraged ETF: Your Key to 30% Annual Returns.” Be sure to give it a read and let me know your thoughts.

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