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Long-Term Stock Portfolio: 10 Best Stocks for 5 Years

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On August 22, Friday, the stock market went up after Federal Reserve Chair Jerome Powell indicated that the central bank might have to start lowering interest rates in September.

The Dow Jones Industrial Average gained 1.89% to reach a new all-time high and close at a record level. The S&P 500 also went up by 1.52%. The tech-heavy Nasdaq Composite climbed 1.88%.

Megacap technology stocks surged after Powell’s remarks.

Powell said that the current economic situation and risks might mean the Fed needs to change its policy. He noted that the balance of risks is shifting between the Fed’s dual mandate of full employment and stable prices. Powell also noted big changes in tax, trade, and immigration policies.

After these comments, the chances of the Fed cutting interest rates by a quarter-point in September jumped to about 83%, according to the CME Group’s FedWatch tool. This was up from the 75% chance expected earlier in the week.

With this background in mind, let’s take a look at the 10 best stocks for 5 years for a long-term stock portfolio.

Stocks

Our Methodology

To compile our list of the 10 best stocks for 5 years for a long-term stock portfolio, we looked for “long-term stocks to buy” and “stocks to invest in for the next 5 years.” We reviewed various online resources and financial media reports to compile a list of more than 25 best long-term stocks. Next, we focused on the top 10 stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q2 2025 database of 983 elite hedge funds. Finally, the 10 best stocks to buy for the next 5 years were ranked in ascending order based on the number of hedge funds holding stakes in them as of Q2 2025.

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).

Long-Term Stock Portfolio: 10 Best Stocks for 5 Years

10. Shopify Inc. (NASDAQ:SHOP)

Number of Hedge Fund Holders: 69

Shopify Inc. (NASDAQ:SHOP) is one of the best long-term stocks to buy for the next 5 years. On August 7, Benchmark increased its price target for Shopify Inc. (NASDAQ:SHOP) from $140 to $190 while keeping a Buy rating.

This decision to raise the price target came after Shopify Inc. (NASDAQ:SHOP) shared results for the second quarter of 2025.

Shopify Inc. (NASDAQ:SHOP) reported a 31% year-over-year growth in its Gross Merchandise Volume (GMV). According to Benchmark, this marked the company’s strongest growth in 3.5 years.

The company also reported faster GMV and revenue growth in North America, Europe, and Asia Pacific compared to the first quarter of 2025. Shopify Inc. (NASDAQ:SHOP) still has a lot of potential to grow its market share, especially in international markets.

Shopify Inc. (NASDAQ:SHOP) is a global commerce company that offers an all-in-one e-commerce platform to start, run, and grow a business.

9. Verizon Communications Inc. (NYSE:VZ)

Number of Hedge Fund Holders: 71

Verizon Communications Inc. (NYSE:VZ) is one of the best long-term stocks to buy for the next 5 years. On August 20, Verizon Communications Inc. (NYSE:VZ) announced new plans to offer prepaid customers expanded global connectivity.

Two key brands in Verizon Communications Inc.’s (NYSE:VZ) Value portfolio, Simple Mobile and Total Wireless, will start offering enhanced plans and expanded roaming services to prepaid customers on August 28.

According to the report by Verizon Communications Inc. (NYSE:VZ), the new plans will include unlimited calling and texting to over 200 countries. This makes these plans great options for customers who travel internationally.

Verizon Communications Inc. (NYSE:VZ) noted that besides traditional destinations like Mexico, Canada, and the UK, the Asia Pacific region is attracting American travelers at unprecedented levels. These plans will help meet the rising demand for international connectivity.

Both Simple Mobile and Total Wireless serve different customer needs while utilizing Verizon Communications Inc.’s (NYSE:VZ) strong network to offer international features that expand offerings for prepaid customers.

Verizon Communications Inc. (NYSE:VZ) is an American technology and telecommunications company that provides reliable network connectivity, entertainment, and security solutions.

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The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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