The Top 3 Long-Term Stocks to Buy for Decades of Gains

Group 1: Long-term Investment Principles - The principle of letting winners run is emphasized, with a focus on compounding and long-term stocks that have durable competitive advantages [1][2] Group 2: VeriSign (VRSN) - VeriSign plays a critical role in internet infrastructure, providing .com and .net domains under exclusive agreements with ICANN, ensuring its monopoly position [4] - The company has maintained high profitability with a 5-year average net margin of 54% and a 39% return on equity, reinforcing the strong economics of its domain registry business [5] - VRSN stock is currently trading at 22 times forward earnings, the cheapest in five years, indicating a strong investment opportunity [16] Group 3: Crown Castle (CCI) - Crown Castle operates in the cell tower sector and is considered undervalued with a forward price-to-funds-from-operations (P/FFO) of 14 and a dividend yield of 6.1% [7] - The cell tower business contributes 68% of revenues, providing stable income, and the growth in mobile data is expected to drive demand for cell towers [8] - The company has significant operating leverage due to long-term contracts with annual rent escalators of 3% [17] - Activist pressure from Elliott Management is expected to unlock shareholder value through strategic improvements [18] Group 4: Zoetis (ZTS) - Zoetis is a leader in the global animal health market, with approximately 20% of revenues from patented products, allowing it to charge premium prices [10] - The company has achieved an 8% annual revenue growth over the past 11 years, supported by the ongoing trend of pet humanization [11] - In Q4 2023, Zoetis reported an 8% year-over-year revenue growth, which accelerated to 10% in Q1 2024, driven by new product launches [20] - The company has maintained a 3-year diluted EPS CAGR of 11.8% and operating margins above 35% [22]