3 penny stocks I’d buy today and hold for 10 years!

I don’t have a basic reserve of cash to draw on. But here are the top three stocks I would buy today if I had the money to invest.

I think we can produce incredible returns for investors over the next decade.

Surface changes

The global sports car market is seen to grow rapidly due to the number of high net worth individuals. But investing in motorcycle manufacturers has a high risk because the market is super competitive.

So I prefer to invest in companies that make components for these automakers. Surface changes (LSE:SCE) is one of my favorite businesses, a stock that produces ceramic brakes for high performance vehicles.

The business continues to increase its capacity to exploit this rapidly growing market. By 2026, it hopes to have a sales capacity of £150m, up from the £50m it expects to spend in the second quarter.

Bear in mind that earnings could disappoint in the near term if production problems among major automakers continue.

European Metals Holdings

The mining business is highly unpredictable and earnings forecasts are therefore fragile. Exploring for mineral deposits, developing mines, and ultimately extracting raw materials from the ground is a very complex business.

But I’m still tempted to invest European Metals Holdings (LSE: EMH). The mining company is developing the Czech Cinovec lithium project, which is said to be the largest source of the metal in Europe.

This creates great earning potential. Long-term demand for lithium will increase as sales of electric vehicles (EVs) stagnate. These elements are the main ingredients in car batteries.

On top of this, I like the geographic position of this particular lithium stock. As the map below shows, it is on the doorstep of some of the largest motorcycle manufacturers in the world.

Last week, Cinovec was also classified by the European Union as a strategic project. This gives priority access to funding from the block. All things considered now is a good time to buy these penny stocks.

City Pub Group

UK leisure stocks face an uncertain 2023 as the cost of living crisis continues. This is included City Pub Group (LSE:CPC), a pub chain that operates 44 establishments in Southern England and Wales.

That said, I believe focusing on the premium end of the pub market can help it weather the storm. More affluent consumers have more money to spend during economic ups and downs.

In fact, the latest financials come as a huge reassurance to investors. City Pub Group saw like-for-like sales growth accelerating to 7.8% compared to 2019. The result would have been even better if not for the rail strike.

Brits spend a higher proportion of their income on leisure activities such as going out for drinks or cocktails. I think these penny stocks can be a great way to use this theme.