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.
8. Vertiv Holdings Co (NYSE:VRT)
Market Cap: $51.3 Billion
Number of Hedge Fund Holders: 104
Vertiv Holdings Co (NYSE:VRT) is one of the best stocks for a 20-year long-term stock portfolio. On August 20, an analyst from Rothschild & Co Redburn initiated coverage of Vertiv Holdings Co (NYSE:VRT) with a Neutral rating and a $135 price target.
The analyst highlighted that Vertiv’s strong presence in thermal and power management would benefit it as AI workloads increase because these areas are essential for data centers. However, the note also cautioned that much of this strength may already be priced into the stock, which leaves limited room for near-term upside.
Around the same time, analysts at GLJ Research initiated coverage with a Sell rating and a $112 target, implying a 17% downside. The analysts contend that Vertiv Holdings Co’s (NYSE:VRT) valuation factors in “peak cycle” conditions for 2027-2028, leaving little margin for error. The analyst also raised concerns around competition and the durability of pricing power, which were flagged as key risks to sustaining the current momentum.
The cautious view from both analysts is understandable as the stock is currently trading near the top of its 52-week range and its all-time high. However, analyst consensus still appears optimistic on Vertiv Holdings Co (NYSE:VRT) with a price target of $162, implying a 20% further upside.
Vertiv Holdings Co. (NYSE:VRT) is engaged in the design, manufacturing, and servicing of critical digital infrastructure for data centers, communication networks, and commercial and industrial environments. The company specializes in thermal management, power distribution, and backup power systems, ensuring high efficiency and reliability in mission-critical operations.
7. Intuit Inc. (NASDAQ:INTU)
Market Cap: $186.4 Billion
Number of Hedge Fund Holders: 105
Intuit Inc. (NASDAQ:INTU) is one of the best stocks for a 20-year long-term stock portfolio. On August 22, BMO Capital analyst Daniel Jester maintained a Buy rating on Intuit Inc. (NASDAQ:INTU) with a price target of $870.
Jester pointed to broad-based strength across Intuit Inc.’s (NASDAQ:INTU) business, noting that QuickBooks Online exceeded expectations and Credit Karma delivered well above consensus, led by growth in personal loans and credit cards. This growth was partially offset by headwinds in the Global Business Solutions Group, especially with Mailchimp.
The EBIT margin came in slightly below consensus, but management expects faster free cash flow expansion in the next fiscal year. While Intuit Inc.’s (NASDAQ:INTU) guidance for FY 2026 was modestly below consensus due to weakness in Mailchimp, its overall growth prospects remain intact.
Jester believes Intuit Inc.’s (NASDAQ:INTU) leading platforms, supported by favorable market conditions, provide an attractive setup for long-term investors.
Intuit Inc. (NASDAQ:INTU) is a leading provider of financial management and compliance software, offering QuickBooks, TurboTax, Mailchimp, and Credit Karma.
6. Eli Lilly and Company (NYSE:LLY)
Market Cap: $657.1 Billion
Number of Hedge Fund Holders: 119
Eli Lilly and Company (NYSE:LLY) is one of the best stocks for a 20-year long-term stock portfolio. Eli Lilly has substantially underperformed this year with YTD decline of over 5%. On August 8, its shares touched $625-$626, levels last seen in 2024. However, it has since appreciated by nearly 17% as investor sentiment improved.
August 27, HSBC analyst Rajesh Kumar upgraded Eli Lilly and Company (NYSE:LLY) to Hold from Sell and lifted his price target to $700 from $675, citing progress on the company’s oral weight-loss drug. HSBC, previously bearish on the stock, acknowledged that the bear case has now played out following positive late-stage trial results.
The trial showed meaningful weight loss in patients with obesity and type 2 diabetes, coming in ahead of expectations and performing better than a rival’s oral treatment. This result strengthens Eli Lilly’s position in both U.S. and overseas markets. FDA approval is expected in 2026 and street forecasts suggest the drug could generate $15.5 billion in annual sales by 2032.
With that upgrade, the majority of analysts now have a Buy or equivalent rating on Eli Lilly and Company (NYSE:LLY), with no Sell ratings. The consensus 1-year median price target of $900 indicates a 23% potential upside.
Eli Lilly and Company (NYSE:LLY) is a global pharmaceutical company focused on the development, manufacture, and marketing of medicines for diabetes, oncology, immunology, and neuroscience.
5. Broadcom Inc. (NASDAQ:AVGO)
Market Cap: $1.5 Trillion
Number of Hedge Fund Holders: 156
Broadcom Inc. (NASDAQ:AVGO) is one of the best stocks for a 20-year long-term stock portfolio. On August 28, an Oppenheimer analyst raised his price target on Broadcom Inc. (NASDAQ:AVGO) to $325 from $305, reiterating an Outperform rating ahead of the company’s Q3 results.
The analyst expects the company to report a strong quarter and provide a robust Q4 outlook, based on its leadership in AI networking and compute businesses. He highlighted Broadcom Inc.’s (NASDAQ:AVGO) position as the leading supplier of custom AI ASICs, with projects at leading tech companies, including Google, Meta, and ByteDance.
This came shortly after Citi analyst Christopher Danely reiterated his Buy rating with a $315 target on August 26. He expected Q3 earnings to top consensus, with AI-related revenue contributing around 30% of FY25 sales. Danely also pointed out that Broadcom Inc.’s (NASDAQ:AVGO) broader portfolio helps offset potential margin pressure.
Together, these updates suggest confidence in Broadcom Inc.’s (NASDAQ:AVGO) ability to deliver both near-term upside and sustained growth, supported by its leadership in AI and diversified revenue streams.
Broadcom Inc. (NASDAQ:AVGO) is a global technology company that designs, develops, and supplies a wide range of semiconductor and infrastructure software solutions.
4. Mastercard Inc. (NYSE:MA)
Market Cap: $533.8 Billion
Number of Hedge Fund Holders: 158
Mastercard Inc. (NYSE:MA) is one of the best stocks for a 20-year long-term stock portfolio. The company benefits from the continued shift away from cash to digital payments, which still has scope for growth. With its exposure to such long-term secular growth trends, Mastercard Inc. (NYSE:MA), as one of the strongest players in the global payments industry, should be a primary beneficiary supported by its resilient business model and global brand.
Recent commentary from multiple analysts continues to highlight Mastercard Inc.’s (NYSE:MA) strong positioning in the global payments space. On August 11, TD Cowen analyst Bryan Bergin reiterated a Buy rating with a $645 target, which the analyst based on the company’s resilience and diverse growth strategy. He emphasized Mastercard’s ability to capitalize on payment digitization, along with initiatives in cybersecurity, loyalty, and emerging areas such as stablecoins and Agentic Commerce.
Just days earlier, on August 6, an analyst from Truist raised his price target on Mastercard Inc. (NYSE:MA) to $623 from $612 while maintaining a Buy rating. He cited better-than-expected Q2 earnings and improved forecasts across key metrics as the basis for his optimistic view.
Together, these views highlight Mastercard Inc.’s (NYSE:MA) ability to sustain growth momentum, supported by innovation, healthy consumer spending, and a robust global footprint.
Mastercard Inc. (NYSE:MA) is a global payments technology company that facilitates electronic transactions across credit, debit, prepaid, and commercial programs.
3. Alphabet Inc. (NASDAQ:GOOGL)
Market Cap: $2.6 Trillion
Number of Hedge Fund Holders (GOOGL): 219
Number of Hedge Fund Holders (GOOG): 178
Alphabet Inc. (NASDAQ:GOOGL) is one of the best stocks for a 20-year long-term stock portfolio. On August 28, Bloomberg reported that Google will invest $9 billion in Virginia through 2026 to expand cloud and AI infrastructure. The plan includes a new data center in Chesterfield County, as well as expansions in Loudoun and Prince William counties. These investments will strengthen northern Virginia’s role as the hub of U.S. data centers.
The move follows similar multibillion-dollar commitments from Microsoft, Amazon, and Meta, reflecting intensifying competition in AI infrastructure. It was earlier reported that Meta is reportedly planning a massive investment of around $50 billion for data center expansion in Louisiana.
Google has also pledged $1 billion to provide Virginia students access to its AI Pro plan for a year. These investments reflect growing demand for AI computing, as well as also companies’ efforts to align with U.S. policies around domestic technology growth and leadership.
Alphabet Inc. (NASDAQ:GOOGL) is the parent company of Google and a pioneer in internet-related services and products, including online advertising technologies, search engines, cloud computing, software, and hardware.
2. Nvidia Corporation (NASDAQ:NVDA)
Market Cap: $4.4 Trillion
Number of Hedge Fund Holders: 235
Nvidia Corporation (NASDAQ:NVDA) is one of the best stocks for a 20-year long-term stock portfolio. Nvidia’s results appeared like the event of the year, with many investors and analysts pinning hopes on a strong result and outlook, which would have meant that the AI-led investment story is fully intact.
Following the company’s better-than-expected Q2 results, on August 27, TD Cowen analyst Joshua Buchalter reaffirmed his Buy rating on Nvidia Corporation (NASDAQ:NVDA) with a $235 price target. While the beat was smaller than recent quarters, Buchalter expressed confidence given sustained AI demand and Nvidia’s transition from Blackwell to Blackwell Ultra GPUs. He also noted gross margins are trending toward 75%, and the company is making continued progress on the Rubin GPU roadmap.
In addition, Buchalter highlighted that Nvidia Corporation’s (NASDAQ:NVDA) Gaming and Networking drove the upside. Networking strength was noticeable as it experienced a 46% sequential growth, driven by stronger rack-scale sales. ‘Compute’ revenue declined due to the absence of $4 billion in China exports, though adjusted growth remained healthy.
However, Nvidia Corporation (NASDAQ:NVDA) guidance was weaker than expected. That said, the analyst excluded potential China sales from forecasts due to regulatory uncertainty, arguing that visibility remains limited. Despite near-term volatility, Buchalter continues to see Nvidia as his top pick, supported by structural demand for AI.
Nvidia Corp. (NASDAQ:NVDA) designs and manufactures graphics processing units (GPUs), system-on-a-chip units (SoCs), and AI hardware and software.
1. Microsoft Corporation (NASDAQ:MSFT)
Market Cap: $3.8 Trillion
Number of Hedge Fund Holders: 294
Microsoft Corporation (NASDAQ:MSFT) is one of the best stocks for a 20-year long-term stock portfolio. On August 27, Microsoft Corporation’s (NASDAQ: MSFT) Xbox Insider team announced plans to expand Xbox Cloud Gaming to Game Pass Core and Standard subscribers, thereby reducing reliance on the premium Ultimate tier. The company currently offers access for a monthly fee of $19.99.
As part of the Xbox Insider test, some selective PC titles will be available for streaming, signaling a broader rollout of cloud services across subscription levels.
This initiative follows management’s upbeat commentary on the Q4 FY 2025 earnings call, during which Microsoft Corporation (NASDAQ:MSFT) highlighted record gaming engagement, including 500 million monthly active users across its platforms.
The company also said that Game Pass annual revenue has reached $5 billion, supported by a robust pipeline of nearly 40 in-development titles. The expansion of cloud access reflects Microsoft Corporation’s (NASDAQ:MSFT) strategy to make gaming more accessible and affordable, reinforcing growth momentum in its gaming division.
Microsoft Corporation (NASDAQ:MSFT) develops and sells a wide range of software, cloud services, devices, and business solutions, serving both individual users and enterprise customers worldwide.
While we acknowledge the potential of MSFT as an investment, 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 MSFT and that has 100x upside potential, check out our report about this cheapest AI stock.
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