Best Long-Term Stocks To Watch or Invest In Right Now
Written by
Rudri Bhatt Patel, CFHC™
Edited by
Joe Evans
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Long-term investing focuses less on short-term market moves and more on a company’s ability to grow earnings, generate cash flow and adapt over time. Stocks that perform well over long horizons tend to share common traits: strong competitive advantages, diversified revenue streams and disciplined capital allocation.
Rather than chasing the latest trend, long-term investors typically look for businesses positioned to benefit from structural growth drivers like technology adoption, population growth and rising global consumption.
The stocks below reflect those characteristics and are commonly used by investors building multi-year portfolios.
At a Glance: Best Long-Term Stocks
Company Ticker Core Strength Risk Profile/Use Case One-Line Reason It Stands Out Apple AAPL Brand and ecosystem Medium Recurring revenue from a global user base Microsoft MSFT Enterprise software and cloud Medium Diversified growth with high margins Alphabet GOOGL Digital ads and AI Medium Strong cash flow funds long-term innovation Amazon AMZN E-commerce and cloud Medium to high AWS supports long-term profitability Berkshire Hathaway BRK.B Diversified holdings Medium Long-term capital allocation discipline Johnson & Johnson JNJ Health care products Low to medium Stability and defensive characteristics Procter & Gamble PG Consumer staples Low to medium Consistent demand across economic cycles
Why Investors Focus on Long-Term Stocks
Holding stocks over long periods allows investors to benefit from compounding, dividends and business growth. According to S&P Dow Jones Indices, long-term investors have historically reduced the impact of market volatility by staying invested through cycles.
Long-term strategies also reduce transaction costs and behavioral mistakes tied to frequent trading.
What Makes a Stock Good for Long-Term Investing?
Stocks suited for long-term investing often feature:
- Strong competitive advantages or brand power
- Predictable cash flow and earnings growth
- Sound balance sheets and capital discipline
The U.S. Securities and Exchange Commission notes that long-term investing helps investors ride out short-term market fluctuations while focusing on fundamental business performance.
Best Long-Term Stocks To Consider
Apple (AAPL)
Apple benefits from a large installed base of devices and growing services revenue. According to company filings, services provide recurring, high-margin cash flow that supports long-term stability. Hardware demand cycles remain a source of short-term volatility.
Microsoft (MSFT)
Microsoft combines enterprise software, cloud infrastructure and AI services. Company disclosures highlight recurring subscription revenue and strong operating margins. Its diversified model supports consistent long-term growth.
Alphabet (GOOGL)
Alphabet generates substantial cash flow from digital advertising while investing heavily in AI and cloud services. According to filings, this balance allows continued innovation without sacrificing financial stability. Regulatory pressure remains a key risk.
Amazon (AMZN)
Amazon’s long-term growth is anchored by AWS and global logistics infrastructure. The company reports that AWS contributes a large share of operating income. Retail margins and capital investment cycles affect near-term results.
Berkshire Hathaway (BRK.B)
Berkshire Hathaway owns a diversified collection of businesses and public equity investments. According to filings, the company emphasizes long-term value creation and disciplined capital allocation. Performance reflects management decisions over decades.
Johnson & Johnson (JNJ)
Johnson & Johnson operates across pharmaceuticals, medical devices and consumer health. Company disclosures show stable cash flow supported by diversified revenue streams. Health care demand tends to be less sensitive to economic cycles.
Procter & Gamble (PG)
Procter & Gamble sells everyday household products globally. According to filings, consistent consumer demand supports steady revenue and dividends. Growth is typically slower but more predictable.
Long-Term Stocks vs. Short-Term Trading
| Feature | Long-Term Stocks | Short-Term Trading |
|---|---|---|
| Time Horizon | Years or decades | Days or weeks |
| Volatility Impact | Smoothed over time | Amplified |
| Transaction Costs | Lower | Higher |
| Tax Efficiency | Higher | Lower |
| Focus | Business fundamentals | Price movement |
The Federal Reserve notes that long-term equity returns have historically outpaced inflation, though returns vary by period.
Risks To Understand Before Investing Long Term
Even high-quality companies can underperform. The SEC cautions that long-term investing still carries market risk and requires diversification.
Changes in technology, regulation or consumer behavior can impact long-term prospects.
How Long-Term Stocks Fit Into a Portfolio
Long-term stocks often form the core growth engine of a portfolio. Vanguard research shows that asset allocation and time horizon are more important than short-term market timing.
Investors typically complement long-term stocks with bonds, cash or income assets for balance.
Final Take to GO
The best long-term stocks tend to be companies with durable competitive advantages, strong cash flow and the ability to adapt as markets evolve. Businesses like Apple, Microsoft and Berkshire Hathaway have demonstrated resilience across cycles.
For most investors, long-term stocks are most effective when held patiently as part of a diversified strategy.
Best Long-Term Stocks FAQ
- What are long-term stocks?
- Long-term stocks are shares of companies intended to be held for many years to benefit from growth and compounding.
- Are long-term stocks safer than short-term trades?
- They can reduce volatility over time but still carry market risk.
- Do long-term stocks pay dividends?
- Some do, while others reinvest profits for growth.
- How long should long-term stocks be held?
- Many investors hold long-term stocks for years or decades, depending on goals.
- Are long-term stocks good for retirement?
- They are commonly used for retirement growth, especially when balanced with other assets.
Information is accurate as of Jan. 29, 2026.
Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.
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- Apple "Apple Form 10-K, SEC EDGAR"
- Microsoft "Microsoft Form 10-K, SEC EDGAR"
- Alphabet "Alphabet Form 10-K, SEC EDGAR"
- Amazon "Amazon Form 10-K, SEC EDGAR"
- Berkshire Hathaway "Berkshire Hathaway Form 10-K, SEC EDGAR"
- Johnson & Johnson "Johnson & Johnson Form 10-K, SEC EDGAR"
- Procter & Gamble "Procter & Gamble Form 10-K, SEC EDGAR"
- Vanguard "Focus on the things you can control"
- SEC Investor.gov "What is Risk?"
- Reuters "Fed holds rates steady as expected, but sees elevated inflation"
- U.S. SEC "Beginners' Guide to Asset Allocation, Diversification, and Rebalancing"
- iShares "Long-term investing: Time in the market can top market timing"
- Charles Schwab "Does Market Timing Work?"
