7 No-Brainer Stocks to Buy and Hold for the Next 20 Years: May 2024 (2024)

They say the best time to invest was 20 years ago. And indeed, that’s not too long after the early 2000s recession bottomed out. You’d be sitting on 377% in gains if you invested in the overall market exactly 20 years back. But the second best time? Many would say the COVID trough, but I’d argue that it’s right now, if you know where to look.

The investing landscape right now may be better than many think, for those looking for buy-and-hold opportunities in the market. Things are surely more fast-paced these days, but 20 years gives you the chance to make the most out of what is likely to come in the future. You’d have known 20 years back that the internet was going to be very big. Accordingly, we have a lot of promising tech that can be big in the next two decades—but we’ll be investing in them indirectly through big ‘no-brainer’ stocks to buy and hold, instead of startups that could fizzle away.

Thus, without further ado, here are the seven stocks I’d put my money into if I were handed a crisp $10,000 bill (they actually exist – look it up)!

Microsoft (MSFT)

Just when it seemed likeMicrosoft’s(NASDAQ:MSFT) influence in the cloud sector couldn’t expand any further, the company surpassed expectations once again. Azure revenue soared 23% this past quarter to eclipse $35.1 billion. And it’s worth noting that arguably the entire AI revolution up until now has been indirectly orchestrated by Microsoft.OpenAIwould not be where it is right now without the billions it got from Microsoft. From foundational infrastructure to cutting-edge large language models, Microsoft isclearlyleading the way.

The data boom doesn’t seem to be cooling down either. Azure’s deals valued at more than $100 million increased by over 80%, while commitments over $10 million more than doubled year-over-year.

It’s estimated that 65% of Fortune 500 companies are now using Azure and/or OpenAI. Yes, MSFT stock trades at 35-times forward earnings and a tech selloff means this stock would likely decline as well. But this is a solid pick if you are holding for 20 years. I have full trust in CEO Satya Nadella, so this is definitely one of the best long-term stocks to buy and hold, in my opinion.

Taiwan Semiconductor (TSM)

Taiwan Semiconductor(NYSE:TSM) is the backbone of the semiconductor industry. Most semiconductor companies supply directly from Taiwan Semi. Many analysts think the stock deserves to trade lower than its fabless peers due to the “China threat” and on-shoring trends. However, this argument does not make sense to me since any impact on Taiwan Semi would surely hit fabless semiconductor companies much harder. Plus, Taiwan Semi isinvesting $40 billionin U.S. chip manufacturing. Its facility is expected to be operational in 2027 or 2028.

The company’s financial metrics remain robust.Gross margins exceeded 53%while operating margins topped 42%. Revenue rose 16.5% year-over-year, beating estimates on both earnings and revenue. I see more upside ahead, since the premium you’re paying now is historically not that high.

While seasonal effects dampened smartphone demand slightly in the first quarter, TSMC has done well across all areas of its business. Advanced technological nodes remain in high demand, with 3nm and 5nm processors already accounting for a sizable 46% of wafer sales. Barring unexpected disruptions, this chip giant appears well-situated to sustain its major role in the industry. Notably, TSM stock also provides a 1.7% dividend yield. So, if you like income and you want semiconductor exposure, this is one of the top stocks to buy and hold.

Berkshire Hathaway (BRK-A, BRK-B)

It’s hard to ever be bearish onBerkshire Hathaway(NYSE:BRK-A, NYSE:BRK-B). This company has historically outperformed theS&P 500, and I think it is well-positioned to continue doing so. CEO Warren Buffett might be old right now and not have a right-hand man anymore. But even then, this company’s portfolio is very solid.

Berkshire Hathaway partially acts like an ETF, but with massive flexibility. The company can pile cash or other assets into big private companies likeBNSF Railway, taking on such investment over the years. Its biggest holding,Apple(NASDAQ:AAPL), has not performed well compared to other Big Tech companies, but it hasn’t delivered terrible results either.

I think once Apple gets its AI game on point, we should see even more bullishness spill over into Berkshire stock.

Alphabet (GOOG, GOOGL)

Alphabet’s(NASDAQ:GOOG, NASDAQ:GOOGL) most recent quarterly results were very encouraging. Revenueincreased 15.4% year-over-year, totaling over $80.5 billion. This continues to show the company’s leading position in internet search as well as video sharing through YouTube. Revenue is also up significantly in the company’s cloud computing business.

I really can’t see Google ever being dethroned. AI has not made a dent in Google’s search segment, and YouTube seems even stronger to me. You can make an alternative to Google, but you can’t replace the massive amount of content on YouTube.

YouTube and cloud computing revenue combined are on track to exceed $100 billion annually by the end of the year, if current growth continues. Each of the company’s major business lines showed robust expansion. YouTube has restrictions on adblockers now which is helping power revenue higher. The company also beat both top and bottom-line estimates, a trend I expect to continue.

Amazon (AMZN)

Amazon(NASDAQ:AMZN) recently reported another stellar quarterly performance. Revenueincreased 13% year-over-year to $143.3 billion, comfortably surpassing Wall Street projections. But an even bigger highlight was its operating income, which rebounded 221% to $15.3 billion. It seems all of Amazon’s ongoing efforts to streamline operations and cut costs are paying off. I believe the stock can continue climbing if the stock’s premium holds up.

Investments in new fulfillment centers in more local regions are proving valuable, with nearly 60% of Prime orders in major U.S. metropolitan areas now arriving either the same day or the next day. Plus, with $48.8 billion in free cash flow over the last twelve months, I see a lot more room for expansion. Amazon is much more than an e-commerce business after the cloud boom, so I have solid conviction in this diversified business for the next two decades.

IBM (IBM)

The market’s reaction to Big Blue’s numbers last quarter was a little puzzling to me. While their revenue came in just a smidge below estimates, I’d say the company’s performance was rock solid across some key areas that matter a lot more. The current pullback is likely due to investors taking profits instead of concerns aboutIBM’s(NYSE:IBM) core business.

IBM has been turning the corner, and is now quickly shifting from a mature tech cash cow to a cloud + quantum computing and software play.

Few on Wall Street might now associate IBM with cutting-edge tech yet, but I think that dynamic may change.The HashiCorp acquisitionis going to accelerate the process.

IBM is doubling down on its hybrid multi-approach. And since Hashi’s Terraform is the number one tool buildings use for their infrastructure codes, IBM’s getting a great way to help more businesses get started. I think the company’s recent move to link up with Red Hat makes a lot of sense too. Indeed, this deal makes IBM’s entire IT assistance collection stronger.

CRISPR Therapeutics (CRSP)

CRISPR Therapeutics(NASDAQ:CRSP) is by far the riskiest play on this list. If you’ve been reading my articles for a long time, you’d know I stay away from most biotech companies.

However, CRISPR has been one of the rare exceptions. I’ve been bullish on the stock since 2022. CRSP stock hasn’t made big moves either way since, but if thisgene-editing techdoes become successful, you’ll be laughing your way to the bank in 20 years.

The company currently has seven trials underway studying new treatments for cancer, autoimmune conditions, heart health issues, and diabetes. The company’s tech can solve a lot more problems than just these.

The big reason why I’m bullish on this stock is the company’s $2.1 billion cash buffer. I’m confident this cash can last for many years into the future. Analysts seem bullish on CRSP stock over the near-term, too.

On the date of publication, Omor Ibne Ehsan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.comPublishing Guidelines.

Omor Ibne Ehsan is a writer at InvestorPlace. He is a self-taught investor with a focus on growth and cyclical stocks that have strong fundamentals, value, and long-term potential. He also has an interest in high-risk, high-reward investments such as cryptocurrencies and penny stocks. You can follow him on LinkedIn.