In this article, we will take a look at the 12 Best Forever Stocks to Invest In.
Despite concerns that President Trump’s trade war would push prices higher, inflation had been on a generally downward trajectory for the year prior to June, with the headline CPI back in January at a 3% annual rate and moving progressively slower in the months that followed.
Although there was conflicting information in June regarding the extent to which tariffs affected pricing, there were indications that the duties were having an impact. While food prices rose 0.3% for the month, bringing the annual gain to 3%, energy costs reversed a May drop and increased 0.9%, though they are still somewhat lower than what they were a year ago.
Trump has been pressuring the Federal Reserve to cut interest rates, which it hasn’t done since December, amid the previously subdued inflation rates. In addition to arguing that the Fed’s unwillingness to ease up has raised the expenses the United States must bear for its growing debt and deficit issues, the President continues to argue that tariffs aren’t making inflation worse.
Chair Jerome Powell and other central bankers, however, have not backed down. They contend that, given the current state of the US economy, the Fed can afford to wait to assess how tariffs will affect inflation.
Our Methodology
For this list, we emulated Warren Buffett, arguably the most well-known investor on Wall Street. To come up with our list of the best forever stocks, we began by evaluating Buffett’s stock portfolio, focusing on stock holdings that had been in his portfolio for at least 5 years. Next, we looked at the number of hedge fund investors linked with each stock using Insider Monkey’s database of funds, updated as of Q1 2025. The following names are ranked according to the hedge fund sentiment around them.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
12. VeriSign, Inc. (NASDAQ:VRSN)
Number of Hedge Fund Holders: 45
VeriSign, Inc. (NASDAQ:VRSN) ranks among the best forever stocks to invest in. On July 8, Citi reiterated its Buy rating on VeriSign, Inc. (NASDAQ:VRSN) while increasing the price target from $294 to $330 on the company’s shares. Citi noted encouraging domain patterns, stating that .com domains saw year-over-year growth in June for the first time in 15 months of the firm’s domain tracking.
According to Citi, investors have become more aware of VeriSign’s pricing power, which is assured for the next six-year contract period, resulting in a 37.20% increase in shares year-to-date. As domain registrations get closer to the upper end of VeriSign’s fiscal year 2025 projection, the firm anticipates that the company will raise its guidance for its 2025 second-quarter earnings report.
VeriSign, Inc. (NASDAQ:VRSN) is a multinational domain name registry and network infrastructure services supplier. The company remains the only registry for the .com and .net domains. Back in November 2024, VeriSign, Inc. (NASDAQ:VRSN) extended its registry agreement with the Internet Corporation for Assigned Names and Numbers (ICANN) for the .com domain. The company will continue to operate the .com registry until November 30, 2030.
11. The Kraft Heinz Company (NASDAQ:KHC)
Number of Hedge Fund Holders: 46
The Kraft Heinz Company (NASDAQ:KHC) ranks among the best forever stocks to invest in. According to a July 11 Reuters report, The Kraft Heinz Company (NASDAQ:KHC) is considering spinning off a sizable portion of its grocery business, which includes several Kraft brands, into a new company that might be worth up to $20 billion on its own. A separation might be official in the upcoming weeks, the report said, leaving the company with items including its namesake Heinz ketchup and Dijon mustard brand Grey Poupon.
The demand for Kraft Heinz’s lunch combos and other products has also been weakened by inflationary pressures and a shift in consumer preferences toward fresher, less processed foods. Due to weak consumer spending, the company reported a dismal quarter in April and reduced its yearly projections.
The Kraft Heinz Company (NASDAQ:KHC) is a global leader in food and beverage production that was founded in 2015 by the merger of Kraft Foods and Heinz. The company makes a variety of items, including dairy, meat, sauces, drinks, and other commodities.
10. Charter Communications, Inc. (NASDAQ:CHTR)
Number of Hedge Fund Holders: 59
Charter Communications, Inc. (NASDAQ:CHTR) ranks among the best forever stocks to invest in. John Hodulik, a UBS analyst, maintained a Neutral rating on Charter Communications, Inc. (NASDAQ:CHTR) on June 18 while raising the stock’s price target from $400 to $425. According to the analyst, the company expects seasonality, ramping fiber development, and ongoing competition from fixed wireless access to negatively impact its cable broadband results in Q2.
UBS expects data ARPU growth to continue at a similar rate in Q2, though it expects a slowdown in the second half as Charter Communications, Inc. (NASDAQ:CHTR) crosses July pricing increases and anniversaries 2-year guarantees.
Charter Communications, Inc. (NASDAQ:CHTR) is a renowned cable and internet company that serves both residential and commercial clients. Spectrum, its leading brand, provides residential and corporate customers with high-speed internet, cable TV, home phone, and mobile services.
9. The Kroger Co. (NYSE:KR)
Number of Hedge Fund Holders: 64
The Kroger Co. (NYSE:KR) ranks among the best forever stocks to invest in. Following The Kroger Co. (NYSE:KR)’s impressive first-quarter results, Citi maintained its Neutral rating and increased its price target for the company from $65 to $74 on June 23.
This was the fifth straight quarter that saw higher comparable sales, with the grocery chain reporting comparable sales growth of 3.2%, above the 2.4% consensus. Meanwhile, EPS came in at $1.49, exceeding the consensus expectation of $1.45.
While retaining its fiscal 2025 earnings per share target of $4.60-4.80, which Citi believes likely represents some cautiousness, The Kroger Co. (NYSE:KR) management raised its comparable sales guidance for the year from 2.0-3.0% to 2.25-3.25%.
With Citi closing its short-term upside view on the company and considering the risk/reward ratio as balanced at current levels, The Kroger Co. (NYSE:KR) anticipates that groceries will be a greater driver of second-half comparable growth than pharmacies.
The Kroger Co. (NYSE:KR) is an American retailer with over 2,700 supermarkets and multi-department stores in 35 states across the US.
8. American Express Company (NYSE:AXP)
Number of Hedge Fund Holders: 75
American Express Company (NYSE:AXP) ranks among the best forever stocks to invest in. On July 2, William Blair reaffirmed its Outperform rating for American Express Company (NYSE:AXP), pointing to the company’s gains with younger customers as a major source of growth.
In contrast to older groups, Gen-Z and millennial customers exhibit higher levels of involvement and give American Express Company (NYSE:AXP) a greater share of their wallets. While their delinquency rates are slightly higher (2.1% compared to 1.3% for Gen-X and baby boomers), these younger cohorts also have reduced servicing costs.
According to William Blair, younger cardholders will eventually have a stronger long-term return on investment than older groups as they are more likely to maintain their American Express cards “top-of-wallet,” which leads to higher relative spending with the same credit performance.
William Blair also showed interest in American Express’s small and medium-sized business division amid recent corporate action in the financial technology industry, such as Melio’s $2.5 billion acquisition and Ramp’s $16 billion valuation.
American Express Company (NYSE:AXP) is a leading bank holding company that provides a comprehensive digital payment network, including credit cards, charge cards, and financing options.
7. Moody’s Corporation (NYSE:MCO)
Number of Hedge Fund Holders: 82
Moody’s Corporation (NYSE:MCO) ranks among the best forever stocks to invest in. Alex Kramm, a UBS analyst, maintained a Neutral rating on Moody’s Corporation (NYSE:MCO) while reducing the stock’s price target from $515 to $445 on July 8. Strong debt issuance, recent equity market growth, and positive foreign currency movements were the main factors that caused UBS to adjust its predictions. The firm contends that even though the group underperformed the market overall over the past three months, many stocks continue to possess high valuations.
Amidst a surge in bond issuance and a strong momentum in its analytics section, Moody’s Corporation (NYSE:MCO) reported solid financial results for the first quarter of fiscal 2025, surpassing earnings projections. However, given the current volatility in the market, the company reduced its guidance for the full year.
Moody’s Corporation (NYSE:MCO) is an integrated risk assessment company that provides credit research, credit models, analytics, and economic data as part of its risk management services.
6. The Coca-Cola Company (NYSE:KO)
Number of Hedge Fund Holders: 87
The Coca-Cola Company (NYSE:KO) ranks among the best forever stocks to invest in. Despite reducing some of its near-term North American growth projections, Piper Sandler maintained its Overweight rating on The Coca-Cola Company (NYSE:KO) on July 8 with a price target of $80.
The company’s forecast of Q2 2025 North American organic sales growth has been lowered from 6.0% to 2.5% to better reflect the 2.8% growth in US measured retail sales so far this quarter. Piper Sandler also reduced its forecast for organic sales growth in North America in Q3 2025 by about 3 percentage points.
While favorable currency conditions add around $0.02 back to Piper Sandler’s 2025 earnings per share forecast, these model adjustments lower it by about $0.02, maintaining the full-year global growth prediction slightly over the midpoint of Coca-Cola’s guidance.
The Coca-Cola Company (NYSE:KO) is a multinational beverage company that produces, develops, and sells a broad variety of nonalcoholic beverages. Coca-Cola’s brands include Fanta, Fresca, Schweppes, Sprite, and others.
5. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 91
Johnson & Johnson (NYSE:JNJ) ranks among the best forever stocks to invest in. Prior to the company’s second-quarter earnings report on July 16, Goldman Sachs reaffirmed its Conviction Buy rating on Johnson & Johnson (NYSE:JNJ) on July 10 with a price target of $177.
Although it recognizes that there will be “several moving parts up and down the P&L,” Goldman Sachs expects that Johnson & Johnson (NYSE:JNJ) will provide earnings that are relatively consistent with consensus forecasts. The firm predicts that key products in the Innovative Medicine division, such as Tremfya (about 2% over consensus) and Carvykti (about 10% above consensus), would perform better than expected.
According to Goldman, the evolution of JNJ’s Innovative Medicine division, which accounts for roughly 65% of revenues but 83% of profits, will have a greater impact on stock performance than the MedTech division.
Goldman also adds that, in contrast to its pharmaceutical peers and the overall market, JNJ’s earnings per share and revenue revisions have trended more favorably since the company’s impressive first-quarter results in its Innovative Medicines division.
Johnson & Johnson (NYSE:JNJ) is a notable name in the healthcare industry, which includes sub-sectors like pharmaceuticals, medical equipment, and consumer health products. The company is known for creating medications to treat a variety of conditions and diseases, including cancer, diabetes, and HIV/AIDS.
4. Mastercard Incorporated (NYSE:MA)
Number of Hedge Fund Holders: 155
Mastercard Incorporated (NYSE:MA) ranks among the best forever stocks to invest in. Mastercard Incorporated (NYSE:MA) stated on June 24 that it was strengthening its relationship with Fiserv by integrating its new FIUSD token into a variety of Mastercard products and services. This will boost the use and adoption of stablecoins for their shared customers globally.
FIUSD represents a new, programmable, blockchain-based token that is available to consumers and companies through more than 150 million merchants across the globe through Mastercard’s global payments network.
The collaboration could promote the smooth transition of businesses and consumers between Fiat and FIUSD by facilitating the successful on/off-ramping of funds. No matter how they are paid, Mastercard Incorporated (NYSE:MA) can assist merchants in receiving payments in FIUSD by enabling the token as a settlement option for its global acquirers.
Mastercard Incorporated (NYSE:MA) is a multinational payments technology company. By facilitating safe and effective electronic payments, it links customers, banks, retailers, governments, and enterprises.
3. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 159
Apple Inc. (NASDAQ:AAPL) ranks among the best forever stocks to invest in. According to a July 11 Business Insider report, Apple Inc. (NASDAQ:AAPL) placed in a bid of at least $150 million a year for the US rights to stream Formula 1 races beginning in 2026. According to the report, the iPhone manufacturer is expected to be the top bidder for the rights since ESPN, the current owner, will not attempt to match or outbid it.
While Apple Inc. (NASDAQ:AAPL) already boasts agreements to stream all Major League Soccer games and some baseball games, F1 would be its most acclaimed international sports investment to date.
The announcement comes after Apple’s “F1: The Movie” movie, which as of July 11 had grossed over $300 million globally.
Apple Inc. (NASDAQ:AAPL) is a global tech company that is known for its core offerings, the iPhone, Mac, and Apple Watch, as well as its expansive service portfolio, which includes iCloud and Apple Music.
2. Visa Inc. (NYSE:V)
Number of Hedge Fund Holders: 165
Visa Inc. (NYSE:V) ranks among the best forever stocks to invest in. Fidelity National Information Services (FIS) and Visa Inc. (NYSE:V) announced on June 30 that they were extending their partnership to offer new value-added services to financial institutions. This move aims to level the playing field for smaller regional and community banks that compete with larger banks.
This collaboration aligns with Visa Inc. (NYSE:V) CEO Ryan McInerney’s remarks, who said on a January earnings call that the network behemoth is leveraging its value-added offering to strengthen customer relationships and offer a wider range of services to clients.
In a similar vein, Andrew Torre was named president of value-added services by Visa Inc. (NYSE:V) earlier in June. According to the press statement announcing Torre’s appointment, Visa’s value-added services division, which grew by 20% annually since 2021, has grown to a $9 billion global business.
Visa Inc. (NYSE:V) is a global payments technology company that operates one of the world’s largest electronic payment networks.
1. Amazon.com Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 328
Amazon.com, Inc. (NASDAQ:AMZN) ranks among the best forever stocks to invest in. On July 11, Piper Sandler maintained its Overweight rating on Amazon.com, Inc. (NASDAQ:AMZN) and raised its price target from $212 to $250. Regarding the higher price target, the firm also boosted its AWS expectations based on stronger CIO survey data.
Additionally, Piper Sandler raised its out-year gross margin forecasts for Amazon.com, Inc. (NASDAQ:AMZN) in light of what it believes to be further benefits from robotics and a change in services mix. The firm observed that Amazon’s Prime Day shopping event has grown to be roughly twice as long as in the past, which it sees as an advantage for the company.
Amazon.com, Inc. (NASDAQ:AMZN), is an American multinational technology company that offers a wide range of commercial interests that include digital streaming, online advertising, e-commerce, cloud computing through Amazon Web Services (AWS), and artificial intelligence.
While we acknowledge the potential of AMZN to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AMZN and that has 100x upside potential, check out our report about this cheapest AI stock.
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