In this article, we will look at the 11 Best Young Stocks to Buy and Hold for 20 Years.
On March 10, WilmerHale released its 2026 IPO report, highlighting an overview and outlook of the US IPO market. The report noted that the US IPO market continues to rebound from 2022 lows, but 2025 failed to meet the optimistic expectations for the year. During 2025, a total of 198 companies went public, which reflects a 21% increase from 2024, with 164 IPOs. Moreover, 2025 marked the third-highest year in the last decade in numeric terms, behind only 381 IPOs in 2021 and 209 IPOs in 2020. The total IPO proceeds for the year reached $41 billion, up 73% year-over-year and behind $76.3 billion in 2020 IPO proceeds.
The report noted that the state of IPO activity in 2026 is dependent on a number of factors, including economic growth, capital market conditions, venture capital pipeline, and the impact of private equity. The report paints an optimistic outlook for the IPO market in 2026 if the conditions remain conducive, as some tested and qualified companies are waiting to go public in 2026.
With that, let’s take a look at the 11 Best Young Stocks to Buy and Hold for 20 Years.
Our Methodology
We sifted through financial media reports to compile a list of stocks that have gone public in the last 5 years and are widely discussed for their long-term potential, and limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
11 Best Young Stocks To Buy and Hold For 20 Years
11. AppLovin Corporation (NASDAQ:APP)
AppLovin Corporation (NASDAQ:APP) is one of the Best Young Stocks To Buy and Hold For 20 Years. On March 11, William Blair reiterated an Outperform rating on AppLovin Corporation (NASDAQ:APP) without disclosing any price targets.
The firm reiterated bullish sentiment on the stock after AppLovin’s investor meeting. CEO Adam Foroughi, CFO Matt Stumpf, and head of investor relations David Hsiao catered to investor questions regarding the AI opportunities and threats, non-gaming advertising growth, and the company’s growth outlook.
Management highlighted that the recent market concerns regarding competitive threats from Meta are not indicative of the reality. CEO Foroughi expressed confidence in the current business trends and expects them to stay strong. He also highlighted that share buybacks remain an attractive opportunity for cash deployment. Moreover, while addressing questions regarding threats from AI, Foroughi noted that AI remains a long-term tailwind rather than a threat.
AppLovin Corporation (NASDAQ:APP) develops and operates a mobile marketing platform, offering AppDiscovery, MAX, Adjust, and SparkLabs. The company’s software-based platform caters to mobile application developers for improvements in marketing and monetization of applications.
10. Arm Holdings plc (NASDAQ:ARM)
Arm Holdings plc (NASDAQ:ARM) is one of the Best Young Stocks To Buy and Hold For 20 Years. On March 4, Reuters reported that Malaysia’s anti-graft agency is investigating corruption and fraud allegations regarding a deal worth 1.1 billion ringgit ($279 million) between Arm Holdings plc (NASDAQ:ARM) and the Malaysian government.
The deal under investigation is worth around $250 million, which was to be paid to Arm Holdings over 10 years, in return for its chip design plans for local manufacturers. The deal came about as the Malaysian government is looking to produce its own chips amid the AI boom.
According to Reuters, twelve people have been summoned so far to give statements regarding the deal. This includes former ministers and other officials from the economic ministry of Malaysia. Malaysia’s investment agency spokesperson, Azam, said that they will be summoning more people for statements and are investigating the issue in a fair manner.
Arm Holdings (NASDAQ:ARM) architects, develops, and licenses central processing unit products and related technologies for semiconductor companies and original equipment manufacturers.