$5,000 invested in these growth stocks could make you rich in the next 10 years

The new inflation rate, which has just fallen, is certainly worrying about the depth of recession the market may face.with S&P 500 Down 25% year-to-date and firmly in bear market territory, investors are understandably nervous about what that means for stocks.

But history shows that bull markets always follow these corrections. Bear markets are measured in months, while bull markets are measured in years. This means that a sharp recession is actually the best time to buy stocks for long-term portfolio returns.

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As Warren Buffett once said, be fearful when others are greedy and be greedy when others are fearful. As long as we have it, we don’t have to fear the bear market, but we eagerly await the opportunity to buy good companies at discounted prices.

If you have $5,000 in cash, the following two growth stocks are great companies to own for years to come.

apple

apple (AAPL -3.22%) Shares are down 22% in 2022 as investors worry about the impact the economy will have on consumers’ spending habits. App Store sales are estimated to be the biggest drop ever, he fell 5% in September, and he fell 2% in the quarter. That creates short-term headwinds, but demand for the more expensive iPhone 14 models remains strong, with Apple’s share of the smartphone market at a record high, according to a survey of teens conducted by Piper Sandler. It remains close to height.

One short-term catalyst is Apple’s $90 million share buyback program, which should help support weak earnings. Apple has long been working to introduce new products such as a VR headset and his long-awaited Apple Car, which he hopes to bring to market by 2025.

Some services, such as the App Store, may see lower revenues in the coming quarters, while others such as iCloud, AppleCare, and even Music should continue to grow. , with demand maintaining an upward trajectory, Apple was able to keep its premium prices intact, so macroeconomic pressures on the company won’t be as great as on its lower-end rivals.

Investors also know that buying Apple stock at these prices means buying the tech giant for less than what Warren Buffett got when he took the company to 41%. You may feel relieved. Berkshire Hathawayof (NYSE:BRK.A)(NYSE:BRK.B) portfolio.

Costco

Another stock hit by consumer spending concerns is Costco (price -2.85%)shares have fallen 18% this year and fell again last month despite reporting earnings that beat Wall Street expectations.

Inflation is taking a toll, with September figures higher than expected. Inflation is even higher than headlines, especially for food and fuel, the most important wallet items for consumers. City gas is 33% higher than last year, eggs are 30%, gas prices are 18%, chicken is 17%, coffee and milk are 15%, and so on.

Costco has chosen not to raise membership fees at this time, which has surprised some, but it’s actually driving shoppers to the Warehouse Club and helping sales grow by double-digit percentages.Existing in September Store sales growth slowed to 8.5%, falling below 10% for the first time in 28 months (it’s still above 11% in the US). This proves that buying in bulk during periods of high prices is a wise choice. For example, gross margin was 10.5%, down from 11.1% for him in fiscal year 2021.

But memberships remain Costco’s source of power, and consumers still flock to the Warehouse Club.Last month’s fiscal quarter ended with 118.9 million cardholders, of whom 53.1 million Household members increased by 6.5% from last year.

The economy could always get worse, but Costco’s results show the health and stability of its business model. The company’s shares are a solid choice for investors willing to buy and hold for the long term as they must support retailers through difficult times.