In this article, we will discuss the 10 Best Long Term Stocks to Buy According to Hedge Funds.
On June 25, Allan Small, Senior Investment Advisor at Allan Small Financial Group, appeared on BNN Bloomberg to discuss investment opportunities and talk about the state of the market, which is trading near all-time highs but is largely driven by a handful of companies. Small noted that while the market has risen like a rocket ship rather than climbing the traditional escalator, he observed that leadership is not lifting all boats. Regarding the broader tech sector, Small observed that not all tech companies are performing equally. While the chip and semiconductor industries have seen success, some Mag 7 names have faced recent sell-offs. He viewed this as a positive development, as it allows investors to trim profits from past high-flyers and rotate capital into high-quality companies that have not yet kept up.
Addressing the question of how long the current market trend can last, Small advised investors to maintain a realistic perspective. Statistics show that the S&P 500 historically falls 5% to 10% a couple of times a year, and he suggested that investors should expect a pullback (possibly in late summer or early fall) without panic. He reminded investors that while the S&P 500 is up about 70%, many have seen higher returns due to heavy tech exposure, making it crucial to understand the drivers behind current market movements. Small emphasized the importance of diversification and noted that even with the market at highs, many quality companies are trading at lower valuations. He described his strategy as looking for companies with growing earnings and top-line numbers that are trading cheaply. He suggested that investors stay diversified across sectors like banking, pharma, and retail to mitigate the impact of potential tech pullbacks.
Against this backdrop, lets look at some of the best long term stocks to buy according to hedge funds.
Our Methodology
We sifted through financial media reports to compile a list of stocks 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.
Note: All data was sourced on June 26.
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. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
10 Best Long Term Stocks to Buy According to Hedge Funds
10. Medtronic (NYSE:MDT)
Number of Hedge Fund Holders: 60
Medtronic (NYSE:MDT) is one of the best long term stocks to buy according to hedge funds. On June 8, Medtronic received FDA 510(k) clearance for its Nellcor pulse oximetry system featuring the new Nell-EQ intelligent processor. This technology is engineered to provide more consistent and reliable pulse rate and oxygen saturation monitoring across various patient populations, skin tones, and clinical environments. The clearance follows positive verification study results and the device’s previous designation under the FDA’s Safer Technologies Program.
The development addresses historical challenges regarding performance variability in pulse oximetry based on patient physiology and skin tone. Clinical studies for the Nell-EQ system used participants across a full spectrum of skin tones, using advanced signal processing to interpret optical signals into accurate readings. Beyond SpO₂ and pulse rate, the platform supports metrics including Heart Rate Variability and the Perfusion Index, aligning with evolving regulatory standards for inclusive patient monitoring.
Medtronic (NYSE:MDT) intends to launch the Nell-EQ-enabled system globally in the coming months, supported by comprehensive clinician education and training resources. This release reinforces the company’s focus on equitable care and its commitment to advancing monitoring technology. Clinicians can also access existing educational materials through the Medtronic Academy to support the effective use of pulse oximetry across the continuum of care.
Medtronic (NYSE:MDT) is a medical technology company that manufactures, distributes, and sells device-based medical services and therapies. It operates under four primary segments: Cardiovascular Portfolio, Neuroscience Portfolio, Medical Surgical Portfolio, and Diabetes Operating Unit.
9. Lowe’s Companies Inc. (NYSE:LOW)
Number of Hedge Fund Holders: 66
Lowe’s Companies Inc. (NYSE:LOW) is one of the best long term stocks to buy according to hedge funds. On May 21, Lowe’s introduced Material Lists, an AI-powered tool designed to streamline the estimation process for Pro customers. This technology converts various formats (including handwritten notes, photos, and spreadsheets) into quote-ready orders in minutes. Supporting both English and Spanish, the feature is engineered to reduce manual data entry and minimize errors, allowing Pros to respond faster to their own clients.
By digitizing raw material information, this tool addresses a significant pain point for Pros who often struggle to balance administrative tasks with project management. The solution uses SKU matching and automated list digitization developed by Lowe’s Technology to organize product information efficiently. This allows business owners to spend less time on back-office work and more time managing onsite projects and serving customers.
Material Lists joins a suite of digital resources available on Lowes.com and the company’s app, including Blueprint Takeoffs and Pro Extended Aisle. These connected, AI-driven tools are part of a broader initiative to help MyLowe’s Pro Rewards members manage quotes, track orders, and handle purchasing workflows more effectively. Lowe’s Companies Inc.’s (NYSE:LOW) continues to focus on these technological investments to help Pro customers improve operational efficiency and stay competitive.
Lowe’s Companies Inc. (NYSE:LOW) operates as a home improvement retailer in the US and Canada.
8. CrowdStrike Holdings Inc. (NASDAQ:CRWD)
Number of Hedge Fund Holders: 79
CrowdStrike Holdings Inc. (NASDAQ:CRWD) is one of the best long term stocks to buy according to hedge funds. On June 16, CrowdStrike extended its Falcon AI Detection and Response/AIDR platform to function as a unified security control plane for enterprise AI. By integrating with a broad ecosystem of AI gateway partners (including Databricks, Google Cloud, Microsoft Azure, Kong, and others), the company aims to address the fragmented visibility and increased attack surfaces that arise as organizations move AI into production. This approach enables consistent policy enforcement across diverse gateways, APIs, and models without necessitating architectural changes.
The platform provides comprehensive protection by securing the entire AI interaction layer, including prompts, responses, and agents, against threats such as data leakage, prompt injection, and jailbreak attempts. By capturing and correlating telemetry across users, applications, and models, CrowdStrike offers unified visibility into AI activity. Furthermore, these protections feed into the Falcon Next-Gen SIEM, allowing for cross-domain detection and response across an organization’s entire environment.
Through this open ecosystem, CrowdStrike Holdings Inc. (NASDAQ:CRWD) enables real-time, inline security controls that operate without disrupting AI workflows. Industry partners are leveraging these integrations to help businesses operationalize AI while maintaining necessary governance, risk management, and security guardrails. This collaborative effort is designed to allow enterprises to scale their AI initiatives confidently while ensuring that security remains consistent across all deployments.
CrowdStrike Holdings Inc. (NASDAQ:CRWD) is a technology company that offers cybersecurity solutions through its unified platform and a SaaS subscription-based model.
7. Lockheed Martin Corporation (NYSE:LMT)
Number of Hedge Fund Holders: 83
Lockheed Martin Corporation (NYSE:LMT) is one of the best long term stocks to buy according to hedge funds. On June 3, Lockheed Martin successfully intercepted a Group 3 drone using its JAGM missile fired from a GRIZZLY containerized launcher, managed by the Sanctum C-UAS system. The entire end-to-end integration, from hardware-in-the-loop to live-fire testing, was completed in under 45 days. This demonstration proves the system’s ability to rapidly detect, track, and neutralize drone threats in an evolving combat environment.
The GRIZZLY launcher is designed for agility and affordability, featuring a containerized, low-infrastructure footprint that can be deployed on both land and maritime platforms. Using wireless communication between sensors and the battle manager, the system enables modular, distributed operations. This setup allows for rapid deployment while providing a scalable kill web against a wide range of UAV threats.
This achievement highlights Lockheed Martin Corporation’s (NYSE:LMT) focus on delivering cost-effective, layered defense capabilities that can be quickly scaled for the warfighter. By combining proven weapon systems with advanced sensor and mission management software, the company offers a flexible solution to protect critical assets. The modular nature of the technology ensures it can operate as a standalone system or integrate with existing command and control networks.
Lockheed Martin Corporation (NYSE:LMT) was founded in 1995 through the merger of Lockheed Corporation and Martin Marietta (tracing its earliest aviation roots to 1912) and is headquartered in Bethesda, Maryland. It is an aerospace, defense, and advanced technology company.
6. The Charles Schwab Corporation (NYSE:SCHW)
Number of Hedge Fund Holders: 101
The Charles Schwab Corporation (NYSE:SCHW) is one of the best long term stocks to buy according to hedge funds. On June 12, Schwab Asset Management announced the closure and liquidation of the Schwab Ariel Opportunities ETF. The fund will cease trading on the NYSE Arca after the market closes on July 17, at which point it will be delisted and stop accepting new creation orders. Shareholders have until this date to sell their shares through their broker-dealers.
The final liquidation is scheduled for approximately July 24. Any shareholders still holding positions at the close of trading on July 17 will have their remaining shares redeemed, with proceeds distributed promptly following the liquidation date.
Leading up to the final liquidation, the fund’s assets may no longer be managed according to its original investment objectives and strategies. Investors are encouraged to consider these changes and the upcoming timeline for their holdings.
The Charles Schwab Corporation (NYSE:SCHW) is a financial services holding company. Through its subsidiaries, it provides wealth management, securities brokerage, banking, asset management, custody, and financial advisory services.
5. Danaher Corporation (NYSE:DHR)
Number of Hedge Fund Holders: 110
Danaher Corporation (NYSE:DHR) is one of the best long term stocks to buy according to hedge funds. On June 10, Danaher completed its acquisition of Masimo Corporation, a specialist in pulse oximetry and patient monitoring solutions. Masimo will now function as a standalone operating company within Danaher’s Diagnostics segment, retaining its original brand identity while operating as a wholly owned subsidiary. With the deal finalized, Masimo’s common stock has been delisted from the NASDAQ.
Danaher views this integration as a strategic move to enhance its diagnostics portfolio, specifically targeting acute care settings through Masimo’s sensor and AI-monitoring technologies. The company expects the acquisition to accelerate Masimo’s global reach and provide new capabilities for delivering specialized healthcare products.
Regarding financial impact, Danaher Corporation’s (NYSE:DHR) current 2026 guidance remains unchanged for the second quarter, as Masimo is not expected to contribute materially until later in the year. The company plans to provide updated full-year 2026 financial guidance during its second-quarter earnings release to reflect the new addition.
Danaher Corporation (NYSE:DHR) is a science and technology innovator that offers medical, research, and industrial products and services, with an emphasis on biotechnology, life sciences, and diagnostics. Operating through its subsidiaries, it delivers various solutions, including advanced testing, bioprocessing technologies, cell culture media development services, filtration technologies, and more.
4. Berkshire Hathaway Inc. (NYSE:BRK-B)
Number of Hedge Fund Holders: 126
Berkshire Hathaway Inc. (NYSE:BRK-B) is one of the best long term stocks to buy according to hedge funds. On June 2, Berkshire Hathaway Specialty Insurance/BHSI promoted Ben Wyatt to Head of Marine for North America and the UK, effective immediately. In his expanded role, Wyatt will oversee underwriting, strategy, and portfolio management across these regions to create a more unified global platform. He will work closely with Nick Holding during a transition period as Holding prepares for retirement.
The company is also bolstering its US Marine leadership team with the promotions of Gregg Shannon and Jim Norman to Vice President roles within Inland Marine. These changes follow the recent hiring of Kevin Kempf as Vice President of Ocean Marine Cargo. Together, these moves are designed to increase underwriting consistency and strengthen BHSI’s service delivery for brokers and customers.
BHSI continues to grow its suite of Inland and Ocean Marine products, ranging from Builders Risk to Motor Truck Cargo. By aligning its leadership and expertise across key markets, the company aims to provide more flexible, tailored solutions to meet the evolving needs of its clients while leveraging its financial strength and underwriting discipline.
Berkshire Hathaway Inc. (NYSE:BRK-B) is an American conglomerate that owns a portfolio of businesses in diverse industries. It has footprints in insurance, energy, railroads, manufacturing, and services sectors. Berkshire also owns significant stakes in many blue-chip companies.
3. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 265
Alphabet Inc. (NASDAQ:GOOGL) is one of the best long term stocks to buy according to hedge funds. On June 21, the Department of Information and Communications Technology/DICT and Google Cloud have launched a multi-year collaboration to integrate enterprise AI into Philippine public services. Through the “AI Agents for Public Sector” program, 50,000 public servants (with plans for 200,000) will utilize Gemini Enterprise and Google Workspace to automate administrative tasks and improve citizen interaction. The initiative includes deploying conversational, language-aware AI agents to help Filipinos navigate government procedures via speech or text.
To strengthen national security, the DICT has partnered with Google Cloud to deploy Cybershield across government agencies. This alliance provides AI-driven threat intelligence and centralized security monitoring to protect critical infrastructure and citizen data. Currently, 56 agencies are integrated, to reach 90 by the end of June 2026, creating a coordinated defense against cyber threats.
The partnership also advances the Philippines’ digital infrastructure by integrating trans-Pacific subsea cables, including the Taiwan-Philippines-US and Apricot systems. By combining these high-bandwidth cables with local terrestrial networks, the DICT aims to boost connectivity reliability, lower costs for local organizations, and expand high-speed internet access to public schools and community centers nationwide.
Alphabet Inc. (NASDAQ:GOOGL) is a holding company that operates Google services such as search engines, ad platforms, Internet browsers, devices, mapping software, app stores, video streaming, and more. The company also offers cloud infrastructure and platform services, collaboration tools, and other services for enterprise customers, as well as healthcare-related services and internet services.
2. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 282
Microsoft Corporation (NASDAQ:MSFT) is one of the best long term stocks to buy according to hedge funds. On June 25, Morningstar (NASDAQ:MORN) announced that Microsoft is integrating Morningstar’s investment research into Microsoft 365, Copilot, and Excel to provide financial professionals with trusted data directly within their daily workflows. This allows users to access analyst-driven insights and proprietary analytics through intuitive AI tools while maintaining enterprise security and compliance.
By using new features like the federated Copilot connector and a dedicated AI agent, Microsoft transforms its ecosystem into an intelligent hub for fund screening and comparative analysis. This removes the need for teams to switch between platforms, ensuring that AI-driven decisions are grounded in high-quality, reliable information.
This partnership strengthens Microsoft Corporation’s (NASDAQ:MSFT) role as a foundation for efficient, data-backed financial decision-making. By grounding its AI tools in independent research, Microsoft helps wealth and asset managers work faster and with greater confidence, scaling human expertise through a secure and integrated digital workspace.
Microsoft Corporation (NASDAQ:MSFT) is a global technology company that develops and sells a wide range of software, cloud services, devices, and business solutions, serving both individual users and enterprise customers worldwide. Its flagship products include Windows, Microsoft 365, Azure, LinkedIn, and Xbox.
1. Amazon.com Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 353
Amazon.com Inc. (NASDAQ:AMZN) is one of the best long term stocks to buy according to hedge funds. On June 24, Amazon DSP integrated Proximic by Comscore’s contextual and ID-free Predictive Audience segments, enabling privacy-forward targeting across CTV, web, and mobile. By embedding these AI-driven tools natively, Amazon DSP allows advertisers to reach non-endemic audiences and fill addressability gaps without relying on traditional identifiers.
This integration simplifies campaign execution by reducing activation friction and improving speed-to-market. Amazon DSP users can now leverage real-time content signals to execute precise, high-performance audience strategies within the platform, ensuring relevance and brand suitability across premium environments.
By expanding its suite of privacy-centric tools, Amazon.com Inc. (NASDAQ:AMZN) DSP is streamlining how brands navigate a changing digital landscape. This native capability empowers advertisers to scale their reach effectively, maintaining campaign impact through an efficient, intelligent, and highly accessible workspace.
Amazon.com Inc. (NASDAQ:AMZN) operates across e-commerce, digital content, advertising, and cloud computing. Its online and offline stores offer both in-house and third-party products, while its Amazon Web Services/AWS division runs one of the world’s largest data center networks.
READ NEXT: 10 Best Future Stocks to Buy and Hold for 10 Years and 10 Most Promising Long-Term Stocks to Buy According to Analysts.
Disclosure: None. None. Follow Insider Monkey on Google News.
