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7 Best Stocks for Long-Term Investment

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.

What Makes a Stock Good for Long-Term Investment?

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:

  • Strong fundamentals: Buy stocks of companies with consistent revenue, profits, and strong cash flow. Solid fundamentals give confidence that the business can perform well across decades, supporting your investments through changing conditions.
  • Sustainable competitive advantage: Look for businesses with durable advantages like patents, strong brands, or market leadership. These moats protect profits and help companies deliver stability and above-average returns for shareholders.
  • Consistent dividend payments: Reliable dividend stocks provide steady income and show financial discipline. For long-term investors, reinvesting dividends compounds growth. This can build wealth faster and provide security even when markets become unpredictable.
  • Industry growth potential: Investing in sectors with high growth trends matters. Industries like technology, healthcare, or clean energy often expand faster, offering strong opportunities for wealth creation over time.
  • Strong leadership and corporate governance: Effective leaders and transparent governance protect shareholder value. During times like a financial crisis, skilled management guides the company through challenges. This can protect your investment and maintain long-term stability.
  • Reasonable valuation metrics: Paying a fair stock price matters. Evaluate price-to-earnings ratios, earnings growth, and debt levels. Overpaying can hurt returns, but reasonable valuations allow steady compounding without relying on short-term speculation.
  • Resilience in market downturns: The best long-term stocks weather downturns and recessions without collapsing. Companies with low debt, diverse revenues, and solid cash reserves can keep investors confident through difficult periods in the market.

LevelFields helps you identify the best long-term stocks with confidence. Their AI tool scans millions of market-moving events, which provide early warnings on stability and income for your holdings. Sign up today to cut research time from hours to seconds!

7 Best Stocks for Long-Term Investing

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.

1. Microsoft Corporation (MSFT)

Sector: Technology (Infrastructure)

Market cap: $3.85 trillion

Revenue: $281.72 billion

Microsoft Corporation
Image Source: Microsoft.com

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.

Momentum and Performance

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:

  • In 2025, Azure's annual revenue grew 34% year-over-year, reinforcing Microsoft’s leadership in cloud infrastructure and enterprise solutions.
  • The company’s multi-billion-dollar partnership with OpenAI brought ChatGPT into Microsoft products. This boosted Bing usage and strengthened its competitive edge in search and productivity software.
  • Despite market volatility, Microsoft's stock hit all-time highs in early 2024, surpassing the $3 trillion market cap milestone, making it one of only two companies in that range.
  • Its diversified revenue streams across cloud, software, and gaming helped the Microsoft stock outperform many peers during economic uncertainty.

Future Outlook

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.

2. Alphabet Inc. (GOOGL)

Sector: Technology (Internet Content & Information or Communication Services)

Market cap: $2.94 trillion

Revenue: $350.02 billion

Google
Image Source: Google.com

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.

Momentum and Performance

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:

  • In Q2 2025, Alphabet reported $96.4 billion in revenue with 13.79% growth.
  • A recent antitrust ruling preserved Alphabet’s control over Chrome and Android, which eased investor concerns over the company's financial future.
  • Alphabet’s Class A shares logged their best quarterly performance in two decades, climbing 38% on strong AI-driven gains.
  • Alphabet announced a significant share buyback and dividend program. The corporation is returning billions to shareholders, which highlights its strong financial performance and commitment to shareholder value.

Future Outlook

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.

3. Apple (AAPL)

Sector: Technology (Consumer Electronics)

Market cap: $3.78 trillion

Revenue: $391.04 billion

Apple
Image Source: Apple.com

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.

Momentum and Performance

  • In Q3 2025, Apple posted $94.0 billion in revenue, which is up 10 percent year over year.
  • Apple's earnings per share (EPS) rose 12%, driven by strong iPhone demand and services growth.
  • After a rough start in early 2025, the launch of iPhone 17 sparked a rebound that pushed shares past prior highs.

Future Outlook

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.

4. Johnson & Johnson (JNJ)

Sector: Healthcare

Market cap: $446.55 billion

Revenue: $88.82 billion

Johnson & Johnson
Image Source: JNJ.com

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.

Momentum and Performance

Johnson & Johnson has shown renewed strength this year, backed by solid earnings and strategic moves:

  • J&J reported sales of $23.7 billion during the second quarter of 2025, which is up by 4.6% year-over-year.
  • J&J's stock has gained 13.9% on a year-to-date basis in 2025. This outperforms both the S&P 500 and the Healthcare Select Sector SPDR fund, reflecting investor confidence in its resilience.
  • J&J received FDA approval for its immune disorder drug, which is expected to be the new growth driver for the healthcare company.
  • Johnson & Johnson announced a $15 billion acquisition of Intra-Cellular Therapies, adding neuroscience assets to its pipeline and diversifying future revenue streams.

Future Outlook

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.

5. Palantir Technologies (PLTR)

Sector: Technology (Software)

Market cap: $410.58 billion

Revenue: $1.004 billion

Palantir Technologies
Image Source: Palantir.com

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.

Momentum and Performance

Palantir has surged recently, gaining traction via strong government contract wins and AI demand:

  • Palantir's global revenue jumped 48% year-over-year, with U.S. commercial revenue soaring 93% year-over-year.
  • In mid-2025, Palantir posted its first $1 billion revenue, beating guidance and pushing the stock above prior highs.
  • Palantir's stock rose 80% in the first half of 2025, making it one of the top performers in the S&P 500.

Future Outlook

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.

6. NVIDIA (NVDA)

Sector: Technology (Semiconductor)

Market cap: $4.53 trillion

Revenue: $130.50 billion

NVIDIA
Image Source: Nvidia.com

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.

Momentum and Performance

NVIDIA continues to grow due to strong AI demand, recent product launches, and strategic shifts:

  • NVDA stock hit record highs early in 2025, as investors priced in NVIDIA’s dominance in AI computing and high-growth prospects.
  • NVIDIA has seen 71.6% revenue growth in the last 12 months, reinforcing its leadership in high-demand segments.
  • NVIDIA launched its GeForce RTX 50 series based on the Blackwell architecture. This expanded its presence in gaming and AI-accelerated workloads.
  • Morgan Stanley's analysts raised NVDA's stock price target to $200, citing surging demand for Blackwell GPUs.

Future Outlook

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.

7. Taiwan Semiconductor Manufacturing Company (TSM)

Sector: Technology (Semiconductors)

Market cap: $1.13 trillion

Revenue: NT$2,894.31 billion (approximately $90.08 billion)

Taiwan Semiconductor Manufacturing Company
Image Source: TSMC.com

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.

Momentum and Performance

TSM has gained strong traction in 2025 by riding the AI boom and foundry demand:

  • TMS's revenue growth for January through August 2025 rose 37.1% compared to the same period in 2024.
  • TSM raised its 2025 revenue outlook to 30% growth, citing sustained demand for high-end AI chips.
  • The TMS stock is up 18.4% year-to-date, which is around 41.6% growth over the past year and 200.3% in the last three years.

Future Outlook

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.

Why You Should Consider Long-Term Investing

Below are a few reasons to consider long-term investment strategies.

Build Wealth Through Compounding

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.

Reduce Risk from Market Volatility

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.

Benefit from Dividend Growth Over Time

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.

Save on Taxes With Long-Term Gains

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.

Align Investments with Retirement Goals

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.

Risks of Long-Term Stock Investments

While long-term investing has strong benefits, it’s also important to understand the challenges that come with patience and holding stocks for years.

  • Opportunity cost: Choosing one stock over another can mean missing better gains elsewhere. Even with careful stock analysis, past performance doesn’t guarantee future results, and opportunities in other sectors might outperform your picks.
  • Inflation: Over the decades, inflation can reduce the real value of your money. If your portfolio doesn’t grow faster than inflation, your personal finance goals could fall short of sustaining long-term needs.
  • Market downturns and recessions: Even with a long time horizon, markets face crashes and recessions. Holding during downturns can test your confidence, and extended slumps may take years before recovering the initial value.
  • Limited liquidity: When money is tied up in long-term holdings, accessing cash quickly can be difficult. Your risk tolerance determines whether you can manage without immediate liquidity during financial emergencies.

How to Research and Pick Stocks for Long-Term Investment

Finding the right stocks takes research, patience, and clear decision-making before committing money for the long run.

1. Analyze Financial Statements

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.

2. Evaluate Valuation Metrics

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.

3. Study Industry Trends

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.

4. Review Dividend History

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.

5. Use Stock Market Analysis Tools

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.

LevelFields automatically scans financial filings, documents, and news to find events proven to move stock prices. It can warn long-term investors about a stock's stability or potential income. Join LevelFields today to turn your current setups into higher-percentage trades!

Tips for Managing a Long-Term Investment Portfolio

Managing a long-term portfolio is challenging. Here are some tips to keep in mind:

Diversify Your Holdings

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.

Rebalance Your Portfolio Periodically

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.

Reinvest Dividends

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.

Control Emotional Responses

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.

Monitor Market-Moving Events

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.

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f you want to build wealth by holding quality companies for the long term, LevelFields can help you do it with confidence.

The platform uses advanced AI to scan millions of market events and highlight the ones most likely to impact stock prices.

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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FAQs About Stocks for Long-Term Investments

Which stock is best to invest in for the long term?

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.

What are the best stocks to buy now for the long term?

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.

How much money do I need to invest to make $3,000 a month?

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.

What are the seven stocks to buy and hold forever?

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.

Join LevelFields now to be the first to know about events that affect stock prices and uncover unique investment opportunities. Choose from events, view price reactions, and set event alerts with our AI-powered platform. Don't miss out on daily opportunities from 6,300 companies monitored 24/7. Act on facts, not opinions, and let LevelFields help you become a better trader.

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