When the stock market experiences a sharp decline, as it did after the Trump administration announced tariffs on its trade partners and China responded with retaliatory tariffs, many investors start looking into “buying the dip.” They start talking about buying stocks at temporarily lower prices with the hope that they will recover and bring gains in the future. There is often discussion in online communities like Reddit about whether to buy the dip.
READ ALSO: 13 Best Aggressive Growth Stocks to Buy Now and 10 Best Electronic Components Stocks to Buy Now.
However, financial advisors urge clients to stick with long-term investment plans during market volatility. While buying cheap can be a good idea, experts warn that it is nearly impossible to try and time the market and wait for the perfect moment to buy at the lowest price.
Eric Roberge, certified financial planner and CEO of Beyond Your Hammock in Boston, says that it is impossible to time the market without simply getting lucky. Instead, he suggests sticking to a thoughtful, rules-based investment strategy that focuses not on short-term market swings but on your long-term goals.
Jay Spector, certified financial planner and co-chief executive officer of EverVest Financial in Scottsdale, Arizona, explains that when buying assets during a market downturn, it is important to have a disciplined approach. Some people may be tempted to wait in cash while looking to buy at rock-bottom prices. However, no one can predict where that bottom is.
Waiting on the sidelines could mean missing out and might not be the right strategy. Research has shown that some of the best returns can follow the biggest dips. Spector says that instead of hoping to buy at the absolute bottom, investors should consider “dollar-cost averaging,” which means investing a fixed amount of money at set intervals.
Most importantly, experts say that investors should know why they want to invest in the first place. Sticking to your long-term goals can be key to successful investing during times of uncertainty and market panic.
With this background in mind, let’s look at the 12 best stocks to buy and hold for 10 years.
A trader in a financial institution using fundamentals analysis to select stocks for a portfolio.
Our Methodology
To compile our list of the 12 best stocks to buy and hold for 10 years, we looked for stocks with strong growth potential. We used search terms like “best stocks to buy and hold for 10 years” and reviewed financial media reports and various online resources to compile a list of more than 30 stocks that investors can consider buying and holding for the next decade. Next, we focused on the top 12 stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q4 2024 database of more than 1,000 elite hedge funds. Finally, the 12 best stocks to buy and hold for 10 years were ranked in ascending order based on the number of hedge funds holding stakes in them as of Q4 2024.
Why do we care about what hedge funds do? 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 Best Stocks to Buy and Hold For 10 Years
12. Shopify Inc. (NASDAQ:SHOP)
Number of Hedge Fund Holders: 64
Shopify Inc. (NASDAQ:SHOP) is a leading global e-commerce company. Shopify is the company’s proprietary e-commerce platform for online stores and retail POS systems. The company offers important internet infrastructure and products and services that help start, scale, market, and run a retail business of any size. It makes commerce easier and powers millions of businesses in over 175 countries around the world. Shopify Inc. (NASDAQ:SHOP) ranks among the best stocks to buy and hold for the long term.
On April 17, RBC Capital Markets reduced its price target on Shopify Inc. (NASDAQ:SHOP) from $145 to $125 but maintained an “Outperform” rating. This adjustment stems from expected growth challenges due to new tariffs and the removal of the de minimis exemption, which previously allowed small shipments to enter the US tax-free. The RBC Capital analyst, Paul Treiber, pointed out that Shopify Inc. (NASDAQ:SHOP) is likely to face growth headwinds over the next several quarters because of these trade measures. Treiber noted that the shares are expected to remain volatile and valuation could be pressured in the short term. However, the analyst views Shopify Inc. (NASDAQ:SHOP) as a strong long-term investment and called it one of the most compelling growth stories in their coverage.
11. Novo Nordisk A/S (NYSE:NVO)
Number of Hedge Fund Holders: 64
Novo Nordisk A/S (NYSE:NVO) is a global healthcare and pharmaceutical company that is headquartered in Denmark. The company has production facilities in 13 countries and markets its products in approximately 170 countries around the world. Novo Nordisk A/S (NYSE:NVO) has leading positions in diabetes care, obesity care, haemophilia care, and therapies for rare endocrine disorders. The company is best known for its medications which include Ozempic, Wegovy, and NovoRapid. It is also a leading manufacturer of insulin and GLP-1 therapy. NVO is one of the best stocks to buy and hold for 10 years.
The company is focused on maintaining its leadership in GLP-1 treatments for diabetes and obesity by making progress in its research and development pipeline, executing commercial strategies, and expanding production capacity. As the global volume market leader, Novo Nordisk A/S (NYSE:NVO) serves nearly two-thirds of all patients on GLP-1 treatments across diabetes and obesity. Ongoing scaling efforts have helped the company nearly triple its patient reach over the past three years. In 2024, Novo Nordisk A/S (NYSE:NVO) made significant progress in obesity treatments like CagriSema, semaglutide 7.2 mg, and amycretin. The company also expanded its production capacity by acquiring the Catalent sites in December 2024. This move increases the company’s global fill and finish sites from 11 to 14.
