In this article, we will examine the 10 Best Stocks for a 20 Year Long-Term Stock Portfolio.
On August 28, Vance Howard, CEO of Howard Capital Management, shared his broader market outlook in an interview on CNBC. Looking at the broader equity landscape, Howard said that minor pullbacks of 2–5% in leading technology stocks should be viewed as chances to add to positions. His long-term outlook is highly optimistic. He expects the S&P 500 to potentially double over the next five to six years, supported by robust earnings and structural growth trends.
After its recent earnings report, Howard described Nvidia as one of the strongest companies in the market today, praising its earnings and revenue growth. Despite the stock’s modest pullback after results, he dismissed concerns on valuation, arguing that such dips are opportunities to accumulate shares. He emphasized that the market remains in a clear uptrend and that Nvidia continues to be a high-quality long-term investment.
READ ALSO: Top 10 Stocks to Buy and Hold Forever and 12 Overlooked Large-Cap Stocks with Low Multiples.
As for current market conditions, Howard described them as a temporary lull tied to seasonal factors such as summer trading volumes. He expects activity to pick up in the coming weeks, with the market gaining momentum into year-end. In fact, Howard recently raised his S&P 500 year-end target to 6,700, underscoring his conviction in a strong finish to 2025.
Howard also pointed to the record $7.4 trillion sitting in money market funds as potential fuel for further equity gains once investors deploy that cash.
With that strong outlook and positive backdrop, let’s now turn to the 10 best stocks for a 20-year long-term stock portfolio.
Our Methodology
To compile our list of the best stocks for a 20-year long-term portfolio, we first identified a universe of companies with a market capitalization above $10 billion that have strong long-term growth potential, using ETFs and financial media sources. We then set additional criteria, focusing on companies with a 5-year revenue compound annual growth rate (CAGR) of at least 10% and a dividend payout, even if modest. From this refined pool, we identified the 10 stocks most widely held by hedge funds, using Q2 2025 data from Insider Monkey’s database, and ranked them by hedge fund ownership.
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).
Note: All pricing data is as of market close on August 28, 2025.
Long-Term Stock Portfolio: 10 Best Stocks for 20 Years
10. The Progressive Corporation (NYSE:PGR)
Market Cap: $144.3 Billion
Number of Hedge Fund Holders: 99
The Progressive Corporation (NYSE:PGR) is one of the best stocks for a 20-year long-term stock portfolio. On August 20, William Blair analyst Adam Klauber reaffirmed his Buy rating on The Progressive Corporation (NYSE:PGR), citing solid financial execution and supportive market conditions. The company reported operating EPS of $1.75 for July, ahead of expectations, underscoring strong business momentum.
The Progressive Corporation (NYSE:PGR) also posted a notable improvement in its core auto loss ratio, reflecting disciplined cost control and relatively benign weather, which reduced catastrophe losses. The July combined ratio stood at 85%, well below both last year’s level and management’s target, highlighting resilient underwriting performance.
Although policy growth has slowed in personal auto, The Progressive Corporation’s (NYSE:PGR) earnings trajectory remains strong, giving confidence in longer-term upside potential. Klauber views the stock as well-positioned for growth despite near-term challenges from moderating volume trends.
The Progressive Corporation (NYSE:PGR) is one of the largest auto insurers in the United States, offering personal and commercial auto, property, and specialty insurance products.
9. The Charles Schwab Corporation (NYSE:SCHW)
Market Cap: $176.2 Billion
Number of Hedge Fund Holders: 100
The Charles Schwab Corporation (NYSE:SCHW) is one of the best stocks for a 20-year long-term stock portfolio. On August 15, an analyst from Truist increased his price target on The Charles Schwab Corporation (NYSE:SCHW) to $112 from $107, while maintaining a Buy rating. The move followed strong monthly asset flows, with net new assets growth rebounding above 5% and approaching 6% on a seasonally adjusted basis, the firm’s best pace in more than two years.
Earlier, on July 29, William Blair analyst Jeff Schmitt also reiterated his Buy rating on The Charles Schwab Corporation (NYSE:SCHW), highlighting improving fundamentals. Schmitt pointed to stronger organic growth, favorable shifts in sweep cash, and rising trading activity, which support margin expansion and reduced reliance on supplemental funding.
The analyst expected these dynamics, alongside higher capital returns, to underpin more than 40% EPS growth in the coming years. Together, both analysts see sustained momentum for Schwab as market conditions remain favorable.
The Charles Schwab Corporation (NYSE:SCHW) is a leading U.S.-based brokerage and wealth management firm. It provides trading, advisory, banking, and custodial services to individual investors and independent advisors.
