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15 Best Long-Term Stocks [2021] – Stock Picks to Buy and Hold

- TraderHQ Staff
15 Best Long-Term Stocks [2021] – Stock Picks to Buy and Hold

Best Long-Term Stocks to Buy

If you’re new to the stock market, then you should consider creating a diverse portfolio of the best long-term stocks available.

Long-term stocks should be invested over a more extended period, meaning you need to consider the future growth potential over several years at the very least.

When investing in a long-term stock, you’ll need to show patience, as the payoff over the course of time is what you’re aiming for.

Latest Long-term Picks from Motley Fool Stock Advisor

Latest Stock Advisor Stock Picks 2021Revenue Growth Forecast
Stock Advisor Pick (Jan 6)
Stock Advisor Pick (Dec 16)57%
Stock Advisor Pick (Dec 2)
Stock Advisor Pick (Nov 18)41%
Stock Advisor Pick (Nov 4)43%

Click here to See the Latest Stock Advisor Picks (Jan 20th, 2022)


Investing in long-term stocks requires patience and resilience. With a diversified basket of stocks in your portfolio, you stand the best chance possible of mitigating your long-term risks.

Look out for companies that adapt to change and have competitive advantages. These may be stocks that offer products and services you use often.

Ultimately, we are moving into more positive times economically, especially with vaccine rollouts worldwide and life possibly returning to a new normal.

In-depth research will help you make informed decisions about the right long-term stocks to buy.

Benefits of Long-Term Investing

Long-term investing has many benefits from reducing risk to maximizing returns here are the other benefits.

  1. It’s highly effective as evidenced by many of the most successful investors of all time like Warren Buffett and Peter Lynch.
  2. It reduces brokerage fees and taxes from capital gains, leaving more money in your accounts to compound.
  3. It requires less time and stress compared to constantly watching the market and managing investments.

“The single greatest edge an investor can have is a long-term orientation.” – Seth Klarman

4 Principles For Successful Long-Term Investing

  1. Invest in companies with strong, durable competitive advantages that can last.
  2. Invest when those companies are trading at fair or better prices.
  3. Make sure companies have great management with integrity.
  4. Hold the companies for the long run, 3-5+ years.

“If the job has been correctly done when a common stock is purchased, the time to sell it is – almost never” – Philip Fisher

Finding Companies with Competitive Advantages Through Their Dividends

One criteria which can be helpful in finding companies with competitive advantages is by examining their dividend payments over time. The ones that consistently, over a long period of time continue to increase their dividend payouts likely are industry leaders with competitive advantages and great management.

  • Dividend Achievers: stocks with 10 consecutive years of dividend increases.
  • Dividend Aristocrats: stock with 25 consecutive years of dividend increases.
  • Dividend Kings: stocks with 50 consecutive years of dividend increases.

You Don’t Need to Be Perfect. 6 out of 10 Makes You a Good Investor

“In this business if you’re good, you’re right six times out of ten. You’re never going to be right nine times out of ten” – Peter Lynch

The real power of stock investing is the asymmetric risk profile they offer. While a stock could lose 100% of its value, the best stocks can increase 10x, 20x or more over time. This means the winners can more than make up for the losers.

  • Asymetrical Risk = Risking $10,000 with the potential of making $100,000.
  • Symetrical Risk = Risking $10,.000 with the potential of making $10,000.

Not all stocks will yield the 10x returns, which is why it’s so important to be patient and invest in the right companies that do hold that potential.

The Difference Between 1, 3 and 5 Year Holding Periods

The Motley Fool is a long-time advocate of long-term investing and their stock picking service Stock Advisor is deeply rooted in that philosophy. They advise their members to hold at least 15 stocks and to hold them for at least 3-5 years.

They found that the longer the holding period the higher the probability of profitable returns and the higher rate of return with the 5 year period yielding nearly 6x higher AVG returns than the 1 year period.

Return on Motley Fool Stock Advisor by Holding Period1 Year Hold3 Year Hold5 Year Hold
Probability of Profitable Returns77.00%85.90%94.80%
AVG Return11%34%68.90%

Data is based on Motley Fool Stock Advisor historical performance from an average portfolio from an average month.

Keep Emotions in Check, Don’t Let Volatility Steer You Off Course

Market volatility is normal and pullbacks will happen, long-term investors need to stay the course and ride out those declines in order to reap the real rewards of long-term investing. Over the last 40 years 75% of the time the market had double digit declines it returned positive before year end.

Long-term investing is not about being blind to anything but instead to stick with a plan that history has proven to work very well over time. Building wealth using the long-term approach will require confidence, patience and discipline but the rewards are well worth it.

Click to Access the Motley Fool's Best Long-term Picks (Jan 20th, 2022)

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