Before we get to the stocks you’re here for, let’s acknowledge two caveats:
- Choosing the best stocks to buy today depends heavily on your personal financial situation. To get a feel for where you stand, read our How to Invest guide. It walks you through topics like establishing an emergency fund, allocating assets, and when it makes sense to buy stocks.
- While I ensured some variety, the list below isn’t meant to be a fully diversified portfolio. Instead, they’re my highest-conviction stocks to outperform in 2021 and beyond. The best one-step way to diversify your holdings is to build the core of your portfolio around something like the Vanguard Total World Stock Index Fund ETF (NYSEMKT:VT). That’s the ultimate “stock” if you’re going to buy just one investment and don’t want to mess with picking among individual stocks. You can just set it and forget it, knowing that you’ve got literally thousands of stocks from around the world working for you.
Now let’s get to my list of the best 21 stocks to buy for 2021, from smallest market cap coming into 2021 to largest, followed by the summary buy thesis for each one.
The top 21 stocks for 2021 (smallest to largest)
- iRobot (NASDAQ:IRBT) – $2 billion
- Upwork (NASDAQ:UPWK) – $4 billion
- Fiverr (NYSE:FVRR) – $7 billion
- Redfin (NASDAQ:RDFN) – $7 billion
- Beyond Meat (NASDAQ:BYND) – $8 billion
- Etsy (NASDAQ:ETSY) – $22 billion
- Teladoc Health (NYSE:TDOC) – $29 billion
- Zillow Group (NASDAQ:Z) (NASDAQ:ZG) – $31 billion
- Pinterest (NYSE:PINS) – $41 billion
- Roku (NASDAQ:ROKU) – $42 billion
- Altria Group (NYSE:MO) – $76 billion
- MercadoLibre (NASDAQ:MELI) – $84 billion
- Intuitive Surgical (NASDAQ:ISRG) – $96 billion
- Square (NYSE:SQ) – $98 billion
- Sea Limited (NYSE:SE) – $102 billion
- Philip Morris International (NYSE:PM) – $129 billion
- salesforce.com (NYSE:CRM) – $204 billion
- Walt Disney (NYSE:DIS) – $328 billion
- Berkshire Hathaway (NYSE:BRK-A) (NYSE:BRK-B) – $544 billion
- bitcoin – $597 billion
- Amazon (NASDAQ:AMZN) – $1.6 trillion
2 bonus baskets
- ARK Genomic Revolution ETF (NYSEMKT:ARKG)
- The Chamath Palihapitiya alphabet SPACs: Virgin Galactic Holdings (NYSE:SPCE), Opendoor Technologies (NASDAQ:OPEN), Clover Health Investments (NASDAQ:CLOV), Social Capital Hedosophia Holdings Corp. IV (NYSE:IPOD), Social Capital Hedosophia Holdings Corp. V (NYSE:IPOE) — soon to be SoFi — and Social Capital Hedosophia Holdings Corp. VI (NYSE:IPOF)
Elevator pitches for each stock and basket
For the even quicker version, see my threaded tweet (I also post ongoing coverage of these stocks on my Twitter account). While it’s slightly longer than 280 characters, rest assured the investing thesis summaries below are still quick and high-level.
iRobot is one of my favorite stocks because it checks so many of the boxes I like to see in a company.
Proven results? Check
Strong balance sheet? Check
Visionary founder? Check
Premium brand? Check
Big upside? Check
Known primarily for its Roomba robot vacuums and Braava robot mops, its core business is already impressively profitable.
But iRobot has the potential to be so much more than its current business or past growth indicates. Its competencies in robotics and artificial intelligence allow for tremendous optionality around home appliances and beyond.
Upwork and Fiverr
This is the dynamic duo of gig economy online marketplaces, standing ready to link businesses and individuals with just about any freelance skill you can think of: development, writing, graphic design — even video game tutoring or celebrity impersonation.
As work becomes more remote, more global, more freelance, and more flexible, these are platform plays positioned to profit.
Upwork has more sales, but Fiverr has more recent growth, so it makes sense to bet on the overall trend as a…