In this piece, we discuss the 10 Best Stocks to Buy and Hold for 20 Years.
With 2026 here, investors searching for the best stocks to buy are faced with a complex but opportunity-rich environment. Reuters reports that market dynamics are marked by geopolitical risk, the U.S. midterm elections, a leadership transition at the Federal Reserve, and diverging global monetary policies. At the same time, analysts are projecting equities in the U.S., Europe, and Japan to rise this year, with gains expected to be more modest. Meanwhile, a potential correction is predicted by over half of market participants amid concerns about stretched AI-driven valuations.
While cautious investor sentiment is expected to persist in the short-term, the longer-term outlook remains constructive. The recent ‘black swan’ events have led everybody toward a persistent wall of worry that markets historically climbed according to Fundstrat’s Tom Lee, who said in December that pullbacks should be viewed as pauses within an ongoing bull cycle rather than its end. Furthermore, he sees AI as a solution that caters to structural labor shortages and believes the sector holds the capability to support durable growth even if some stocks fail.
Looking ahead, earnings momentum in U.S. small caps is expected to improve as rate pressures ease, Reuters reports. The optimism also builds on expectations for two Federal Reserve rate cuts in 2026.
Goldman Sachs also issued a positive outlook, supported by strong economic momentum, easing inflation, healthy corporate balance sheets, and sustained AI-driven investment. The investment bank released its 2026 Economic and Financial Market Outlook report on January 12, 2026.
With this background in mind, we will now discuss our list of the “10 best stocks to buy and hold for 20 years” for long-term investors who are increasingly focusing on stocks that boast durable fundamentals and outlast short-term volatility.
For this list, instead of making a quantitative and qualitative selection ourselves, we leveraged AI via the best-known chatbots to select relevant stocks.
Our Methodology
To curate our list of the 10 best stocks to buy and hold for 20 years, we relied on the most credible chatbots, asking them to list the best stocks to buy and hold for the said period. Next, we assessed analyst and hedge fund sentiment for each stock, selecting those that ranked best on both metrics. To measure hedge fund sentiment, we used Insider Monkey’s hedge fund database, which tracks 978 stocks as of Q3 2025. Finally, we ranked the stocks in ascending order by upside potential.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
Note: Analyst upside is calculated as of January 19, 2026.
10. Costco Wholesale Corporation (NASDAQ:COST)
Number of Hedge Fund Holders: 88
Upside Potential: 8.4%
Costco Wholesale Corporation (NASDAQ:COST) is one of the best stocks to buy and hold for 20 years.
Ahead of the 2026 tax filing season, expectations are rising that U.S. consumer spending will receive a boost, potentially impacting value-oriented retailers like Costco Wholesale Corporation (NASDAQ:COST).
On January 18, 2026, Wolfe Research laid out its expectations for material tailwinds to tax refunds in 2026, projecting an incremental $75 billion in refunds for households earning under $200,000, roughly $500 per filer. These expectations rose after the IRS left withholding tables unchanged following the mid-2025 One Big Beautiful Bill (OBBB). Furthermore, the investment firm projects an additional $20 billion in refunds for $200,000-$500,000 earners, driven by additional SALT-related benefits, with payouts typically accelerating after February 15. Costco Wholesale Corporation (NASDAQ:COST) is included in Wolfe Research’s Tax Refund Basket and is well-positioned to benefit from higher discretionary spending associated with refund inflows.
Meanwhile, three days earlier, Costco Wholesale Corporation (NASDAQ:COST) declared a $1.30 per share quarterly cash dividend, payable on February 13. This was preceded by Deutsche Bank’s initiation of coverage of the stock on January 8, 2026, when the firm set a ‘Buy’ rating and a $1,044 price target. While citing short-term pressures from food disinflation, the firm expected stimulus-driven tailwinds in the first half of 2026.
Costco Wholesale Corporation (NASDAQ:COST) focuses on operating membership-based warehouse clubs across the U.S., Canada, and international markets. It offers bulk merchandise at low prices with a high-renewal, fee-driven business model.
9. Berkshire Hathaway Inc. (NYSE:BRK-B)
Number of Hedge Fund Holders: 128
Upside Potential: 8.9%
Berkshire Hathaway Inc. (NYSE:BRK-B) is included in our list of the best stocks to buy and hold for 20 years.
On January 20, 2026, Reuters reported that Berkshire Hathaway Inc. (NYSE:BRK-B) is possibly exiting its 27.5% stake in Kraft Heinz. The company has made investments in the food and beverage stock for the past ten years. However, the investment has recently failed to meet Warren Buffett’s expectations.
Accordingly, Kraft Heinz also filed a prospectus supplement with the SEC, eyeing the potential resale of Berkshire’s 325.4 million shares, equivalent to roughly $7.7 billion based on the prior share price close of $23.8. Following the filing, Kraft Heinz’s shares fell 4.9% in after-hours trading, reflecting investor concerns arising from the potential exit of the major investor.
The move builds upon the significant write-downs made earlier, including $3.0 billion in 2019 and another $3.76 billion in August. The move comes as Kraft Heinz is looking to split into two companies later in 2026, a move that Buffett and CEO Greg Abel previously criticized.
Meanwhile, on January 2, 2026, Berkshire Hathaway Inc. (NYSE:BRK-B) finalized its $9.7 billion acquisition of OxyChem from Occidental. The move reflects the company’s strategy to reallocate capital toward stable, cash-generative industrial assets.
Berkshire Hathaway Inc. (NYSE:BRK-B), a diversified conglomerate previously led by Warren Buffett, owns businesses spanning insurance, energy, industrials, transportation, and consumer products.
8. Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Holders: 114
Upside Potential: 11.7%
Eli Lilly and Company (NYSE:LLY) is one of the best stocks to buy and hold for 20 years.
On January 20, 2026, Guggenheim reduced its price target on Eli Lilly and Company (NYSE:LLY) from $1,163 to $1,161, while reiterating a ‘Buy’ rating. The update came as the firm made a routine model update ahead of the company’s upcoming Q4 results.
On the same day, Eli Lilly and Company (NYSE:LLY) announced that the FDA granted Breakthrough Therapy designation to sofetabart mipitecan (LY4170156) for adults with platinum-resistant ovarian, fallopian tube, or primary peritoneal cancer with disease progression following prior therapies. Following encouraging Phase 1a/b data, the designation speeds up development timelines and regulatory engagement, improving the company’s oncology pipeline visibility substantially.
In presentations at ASCO 2025 and ESMO 2025, responses were shown across all dose levels and folate receptor alpha expression, including in patients progressing on prior mirvetuximab. Moreover, the results showed a favorable tolerability profile, alongside limited serious safety signals. Now, Eli Lilly and Company (NYSE:LLY) stands on a strong footing, with the asset now advancing into the global Phase 3 Framework-01 trial that positions sofetabart mipitecan as a potential differentiated entrant in a high unmet-need ovarian cancer market.
Eli Lilly and Company (NYSE:LLY), a global pharmaceutical company, focuses on developing medicines across diabetes, oncology, immunology, and neuroscience.
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