7 Best stocks for long-term investment: 1. MSFT 2. GOOGL 3. AAPL 4. JNJ 5. PLTR 6. NVDA 7. TSM. Learn how to choose the right one.
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If you want to grow your money steadily, you can invest in stocks and hold for the long term. Instead of focusing on quick trades, long-term investing strategies allow you to own shares in companies that keep growing year after year.
History shows that patient investors who buy strong businesses and hold them through market ups and downs often see the biggest rewards. Their modest investment can turn into substantial wealth over time.
This guide discusses what makes a stock suitable for the long term. We'll also highlight seven of the best choices for investors below.
Before you decide which stocks to hold for years, it’s important to understand what separates a strong company from a weak one. Certain qualities make some stocks more reliable for long-term growth, such as:
Some companies stand out as reliable choices for long-term investors. These seven stocks combine strength, growth, and resilience, making them strong candidates for long-term wealth building.
Sector: Technology (Infrastructure)
Market cap: $3.85 trillion
Revenue: $281.72 billion
Microsoft is one of the largest and most influential technology companies in the world. Its flagship products include the Windows operating system, Microsoft Office, and Azure.
Microsoft Corporation also owns LinkedIn, GitHub, and Xbox, which give the company exposure to social networking, developer tools, and gaming.
Microsoft’s stock has shown steady appreciation over the past decade, driven by cloud adoption, enterprise software demand, and its shift to recurring subscription revenues. It's one of the best growth stocks to buy and hold for the long term due to:
Microsoft’s future outlook remains strong. This is supported by continued Azure growth, integration of AI across its product ecosystem, and a loyal customer base that drives recurring revenue.
With its scale, financial strength, and focus on innovation, the company is well-positioned to deliver long-term value for most investors despite market fluctuations.
Sector: Technology (Internet Content & Information or Communication Services)
Market cap: $2.94 trillion
Revenue: $350.02 billion
Alphabet Inc. is the parent company of Google, the world’s leading search engine and a core platform for online advertising. Beyond search, it owns YouTube, the largest video-sharing platform, and Google Cloud, a fast-growing enterprise service competing with Amazon and Microsoft.
Alphabet’s products (Gmail, Google Maps, Android, and Chrome) are used daily by billions of people worldwide. The company also invests heavily in AI, self-driving technology through Waymo, and healthcare initiatives via Verily.
Alphabet has regained strong momentum in 2025, powered by AI adoption, cloud expansion, and favorable regulatory outcomes. The company’s stock performance reflects renewed investor confidence and accelerating growth:
Alphabet’s long-term outlook is supported by steady growth in its core advertising business, rapid expansion in Google Cloud, and leadership in artificial intelligence with Gemini.
Heavy investment in AI infrastructure and new monetization opportunities across search, YouTube, and enterprise services position the company to continue delivering strong shareholder value over the next decade.
Sector: Technology (Consumer Electronics)
Market cap: $3.78 trillion
Revenue: $391.04 billion
Apple is the global leader in consumer electronics and digital services, best known for the iPhone, iPad, Mac, Apple Watch, and AirPods. Millions of consumers and businesses use Apple products daily, which creates a powerful ecosystem that drives recurring sales and customer loyalty.
Beyond hardware, Apple generates steady income through digital services, like iCloud, Apple Music, App Store, and Apple Pay.
This provides a balanced mix of growth and stability, making Apple a core stock holding for long-term investors seeking exposure to global technology trends.
Apple’s long-term outlook rests on steady iPhone demand, expanding services revenue, and continued hardware innovation across wearables and Macs.
While tariff headwinds and AI delays have pressured margins, the iPhone 17 launch, strong ecosystem loyalty, and new software features (iOS 26) position Apple to regain momentum and maintain its role as one of the best long-term investments.
Sector: Healthcare
Market cap: $446.55 billion
Revenue: $88.82 billion
Johnson & Johnson is a healthcare leader with operations in pharmaceuticals, medical devices, and consumer health products.
The company’s pharmaceutical division drives most of its revenue, focusing on areas such as oncology, immunology, and neuroscience.
Meanwhile, the medical devices segment provides surgical systems, orthopedics, and vision care solutions used in hospitals worldwide.
Lastly, well-known consumer brands like Tylenol, Band-Aid, and Listerine continue to generate steady cash flow for J&J.
For many investors, J&J’s diversified business model, history of dividend growth, and strong presence across healthcare markets make it a reliable long-term stock, particularly in times of economic uncertainty.
Johnson & Johnson has shown renewed strength this year, backed by solid earnings and strategic moves:
Johnson & Johnson looks solid ahead following strong results and pipeline gains, suggesting potential for steady earnings growth and resilience in uncertain times.
With analysts projecting mid-single-digit revenue gains and improved EPS trajectories, J&J may remain a reliable long-term holding for healthcare-oriented investors.
Sector: Technology (Software)
Market cap: $410.58 billion
Revenue: $1.004 billion
Palantir builds data analytics platforms (Gotham, Foundry, Apollo, and other AI-driven offerings) used by governments, defense agencies, and large enterprises to process, analyze, and act on complex data.
It supports intelligence, public services, commercial operations, supply chain analytics, and AI integrations.
What makes Palantir attractive for long-term investors is its high revenue growth, recurring contracts with government clients, and a push into commercial markets. The company offers both stability and upside potential as AI adoption grows.
Palantir has surged recently, gaining traction via strong government contract wins and AI demand:
Palantir’s stock is vulnerable to sharp market swings if growth slows or government contracts face delays. That said, Palantir’s long-term potential is strong, thanks to major government contracts and growing adoption of its AI-enabled analytics across industries.
For long-term investors willing to accept volatility, Palantir offers meaningful upside as AI becomes more deeply embedded in enterprise and government operations.
Sector: Technology (Semiconductor)
Market cap: $4.53 trillion
Revenue: $130.50 billion
NVIDIA designs and manufactures graphics processing units (GPUs) and systems that power AI, data centers, gaming, and autonomous vehicles. The company's chips and software are used by cloud providers, scientific research facilities, and enterprises deploying large-scale machine learning models.
NVIDIA also builds platforms like CUDA and its AI stack. Its dominance in AI computing, high demand in data centers, and strong free cash flow make it an attractive long-term stock in the tech industry.
NVIDIA continues to grow due to strong AI demand, recent product launches, and strategic shifts:
NVIDIA’s long-term outlook is fueled by its dominance in AI computing, rapid adoption of its GPUs in data centers, and growing demand for accelerated computing worldwide.
With new architectures like Blackwell and Rubin expanding its lead in performance and efficiency, NVIDIA is positioned to remain one of the best long-term investments.
Sector: Technology (Semiconductors)
Market cap: $1.13 trillion
Revenue: NT$2,894.31 billion (approximately $90.08 billion)
TSM operates the world’s largest pure-play semiconductor foundry, manufacturing chips designed by other companies, such as Apple, NVIDIA, AMD, and more.
It handles processes from advanced nodes to legacy nodes, which provide scale, efficiency, and technological leadership.
Many high-growth tech and AI companies depend on TSM's manufacturing. This dominance in chip fabrication makes it an important long-term stock in the semiconductor industry.
TSM has gained strong traction in 2025 by riding the AI boom and foundry demand:
TSMC is poised for long-term growth due to rising demand for advanced chips used in AI, smartphones, and data centers.
With 2 nm mass production planned and expanded U.S. manufacturing, the company operates as the backbone of global semiconductor supply chains.
Below are a few reasons to consider long-term investment strategies.
One of the main benefits of long-term investing is compounding. By reinvesting dividends and letting growth accumulate, you allow compound interest rates to multiply your gains over time.
Even small contributions, when compounded over years, can grow into significant wealth.
Unlike short-term investments that rely heavily on timing, long-term strategies reward patience. This approach is why many investors emphasize holding quality businesses for decades rather than seeking quick wins.
Markets naturally rise and fall, but over decades, the general trend has been upward. Focusing on long-term positions reduces exposure to daily swings that can cause stress and poor decisions.
Historical data show that the longer you hold many stocks, the higher the probability of ending with positive returns.
This strategy encourages you to think about broader economic growth rather than short-term corrections.
Dividend-paying stocks reward investors with both income and growth.
When companies consistently increase their payouts, you can reinvest dividends and watch your stock portfolio expand steadily.
Over long periods, dividend growth often outpaces inflation and creates a strong foundation for predictable income.
Holding investments for years instead of months can reduce your tax burden. In many regions, long-term capital gains are taxed at lower rates compared to short-term gains. This advantage leaves you with more money working for you instead of going to the government.
Tax efficiency, combined with compounding, makes long-term investing a practical approach for investors aiming to preserve their wealth and maximize future returns.
Your investment goals should reflect your life priorities, and retirement is often the biggest one.
Long-term investing ensures that your portfolio has the time and growth potential needed to fund your retirement account comfortably.
By holding quality stocks for decades, you give yourself the best chance to achieve financial security.
This strategy aligns your money with long-term needs, whether it’s maintaining your lifestyle, covering healthcare, or leaving a legacy.
While long-term investing has strong benefits, it’s also important to understand the challenges that come with patience and holding stocks for years.
Finding the right stocks takes research, patience, and clear decision-making before committing money for the long run.
Start by reviewing company financials, such as income statements, balance sheets, and cash flow reports.
For investors, financial statements reveal whether a company can sustain operations through challenges while rewarding shareholders. Focus on businesses that generate free cash flow and have pricing power in their industries.
Strong profits, manageable debt, and consistent growth also signal reliable individual stocks worth holding.
By studying these numbers, you gain a clearer picture of business health and long-term prospects. You can make investment decisions grounded in facts rather than speculation.
Valuation matters because overpaying can drag long-term performance. Look at price-to-earnings, price-to-sales, and PEG to assess whether a company’s stock is fairly priced.
Investors using a taxable account should also consider tax impacts when buying and selling stocks.
A reasonable valuation provides a margin of safety, making it easier to hold shares through market volatility.
Choosing fairly priced companies also allows your portfolio to compound effectively over decades, while avoiding inflated valuations reduces downside risk.
Beyond company-level data, study the industries where companies operate. Sectors like AI, renewable energy, and healthcare continue to expand and create strong opportunities for long-term investors.
Applying dollar-cost averaging (DCA) to these sectors helps you invest steadily without worrying about market timing.
Trend analysis lets you identify industries where demand is increasing, technologies are advancing, or regulations are supportive.
Companies positioned in growth industries often produce monster returns compared to those in mature or shrinking markets. By focusing on industries with structural growth, you can capture rising opportunities before they become fully priced in.
Dividends show financial discipline and reward investors with steady income. Consistent dividend increases also demonstrate management’s confidence in future earnings.
For long-term investors, dividend stocks provide both cash flow and compounding benefits. Some investors prefer target-date funds that automatically reinvest dividends, but building a custom dividend portfolio gives you more control.
Reliable dividend growers often outperform in volatile markets because income cushions price swings.
Checking payout ratios, growth history, and reinvestment potential ensures you select companies that will maintain or raise dividends. This step helps you combine growth and income for long-term stability.
Technology gives investors access to platforms that analyze company performance, earnings calls, and market news.
Stock market analysis tools, like LevelFields, use AI to track market-moving events, giving early warnings on stability and income opportunities. These insights help you identify companies likely to deliver market-crushing outperformance compared to sudden losses.
While using tools reduces manual effort, it’s important to remember that technology doesn’t replace personal judgment. It merely supports financial decision-making.
Some companies carry more risk, so having data-driven insights lets you compare outcomes objectively. Using analysis platforms helps you feel confident about stock choices and strengthens your long-term investment strategy.
Managing a long-term portfolio is challenging. Here are some tips to keep in mind:
Diversification spreads your risk across sectors, asset classes, and geographies. A diversified portfolio might include stocks, mutual funds, ETFs, and real estate.
By holding companies in different industries, you reduce exposure to downturns in one sector. For example, adding government bonds or bond funds provides stability during equity market volatility, while equities supply long-term growth.
Diversification doesn’t eliminate risk, but it helps smooth returns and builds resilience into your portfolio. When you mix growth assets with defensive stocks, you balance reward with protection.
Over time, asset weights shift as markets rise or fall. Rebalancing means selling some winners and adding to lagging areas to restore your target allocation. This prevents overexposure to any single asset.
If stocks outperform other investments, your portfolio may become too risky. By rebalancing annually or semi-annually, you keep your risk level steady and in line with your personal financial situation.
Investors who rebalance regularly often protect gains and avoid emotional reactions to short-term market movements.
Dividends provide steady income, but reinvesting them accelerates growth.
Using an index fund or dividend reinvestment program allows automatic reinvestment of payouts. Over the years, reinvested dividends account for a large share of stock market returns.
Companies with long histories of dividend increases are attractive because they signal stability. Pairing dividend reinvestment with growth companies creates a stronger base for your diversified portfolio. This strategy makes time your ally by compounding income and capital appreciation together.
Market downturns test investor psychology. Selling during declines often leads to locking in losses and missing rebounds.
Understanding your current financial situation helps you avoid panic and stay invested.
Make sure to build a portfolio that fits your savings account needs and long-term goals. If your core expenses are covered, you can ride out volatility without fear.
Sticking to a disciplined plan prevents short-term emotions from derailing long-term success. History shows markets recover, but only if you remain invested. Controlling emotions ensures you capture the full benefit of compounding over time.
Staying updated on corporate news, economic shifts, and global developments strengthens your decision-making.
Event-driven trading strategies allow you to adjust positions before major moves. For example, detecting buybacks, leadership changes, or earnings surprises can protect gains.
Combine this approach with traditional research to ensure your investment's long-term stability.
f you want to build wealth by holding quality companies for the long term, LevelFields can help you do it with confidence.
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From dividend changes and insider buying to buybacks and leadership shifts, LevelFields provides early signals on the stability and income potential of your holdings.
Instead of spending hours sorting through news, LevelFields delivers fast, data-driven insights that help you protect your portfolio and spot opportunities ahead of others.
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There isn’t one single “best” long-term stock because the right choice depends on your goals, sector preference, and tolerance for higher risk. However, large-cap companies with strong financials, recurring revenues, and global reach are commonly considered reliable long-term holdings by many investors.
The best long-term stocks include well-established companies like Alphabet, Microsoft, Apple, NVIDIA, and TSMC. These firms dominate their industries and continue to grow. Your final choice varies based on sector exposure, valuation, and personal objectives. It’s important to spread investments across several companies rather than relying on just one.
The amount depends on your portfolio’s yield and growth rate. For example, if your portfolio produces a 5% annual yield, you would need about $720,000 invested.
Actual results will differ, since markets fluctuate. Additionally, a broad range of factors, including taxes, inflation, and reinvested dividends, will influence the final outcome for each investor.
Investors looking for long-term stability often consider Microsoft, Alphabet, Apple, Johnson & Johnson, Palantir, NVIDIA, and TSMC. These companies dominate their fields, generate consistent cash flow, and have strong competitive advantages. While no stock is truly risk-free, these seven are often recommended as durable holdings in diversified long-term portfolios.
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