10 Best Stocks to Buy and Hold for 20 Years

Core Viewpoint - The article discusses the best stocks to buy and hold for 20 years, emphasizing the importance of durable fundamentals and long-term investment strategies in a complex market environment marked by geopolitical risks and economic uncertainties [2][5]. Market Environment - The investment landscape in 2026 is characterized by geopolitical risks, U.S. midterm elections, a leadership transition at the Federal Reserve, and diverging global monetary policies [2]. - Analysts project modest gains for equities in the U.S., Europe, and Japan, with over half of market participants predicting a potential correction due to concerns over AI-driven valuations [2]. Long-term Outlook - Despite short-term cautious sentiment, the long-term outlook remains positive, with historical trends suggesting that market pullbacks are temporary pauses in a bull cycle [3]. - AI is viewed as a solution to structural labor shortages, with the potential to support durable growth even if some stocks underperform [3]. Earnings Momentum - Earnings momentum for U.S. small caps is expected to improve as rate pressures ease, with optimism building around anticipated Federal Reserve rate cuts in 2026 [4]. - Goldman Sachs has a positive outlook based on strong economic momentum, easing inflation, healthy corporate balance sheets, and sustained AI-driven investment [4]. Stock Selection Methodology - The list of the "10 best stocks to buy and hold for 20 years" was curated using AI chatbots to identify stocks with strong fundamentals and positive analyst and hedge fund sentiment [5][7]. - Hedge fund sentiment was measured using Insider Monkey's database, which tracks 978 stocks as of Q3 2025, and stocks were ranked by upside potential [8]. Stock Highlights - Costco Wholesale Corporation (NASDAQ:COST): Expected to benefit from increased consumer spending due to tax refunds, with a projected incremental $75 billion in refunds for households earning under $200,000 [11]. The company declared a quarterly cash dividend of $1.30 per share [12]. - Berkshire Hathaway Inc. (NYSE:BRK-B): Possibly exiting its 27.5% stake in Kraft Heinz, with the potential resale of 325.4 million shares valued at approximately $7.7 billion [14][15]. The company also finalized a $9.7 billion acquisition of OxyChem, reflecting a strategy to focus on stable, cash-generative assets [17]. - Eli Lilly and Company (NYSE:LLY): Received FDA Breakthrough Therapy designation for a new cancer treatment, enhancing its oncology pipeline visibility [20]. The company is advancing into a global Phase 3 trial for this asset, which addresses a high unmet need in ovarian cancer [21].