In this article, we will discuss the 10 Best Long Term Growth Stocks to Buy According to Billionaires.
As per Barclays, the US administration announced numerous executive orders with reforms associated with world trade, immigration, and global geopolitics, resulting in elevated levels of uncertainty and volatility, with markets witnessing a range of policy changes. The firm’s research analysts opine that higher uncertainty comes at a cost to global growth. In the US, there has been a decline in consumer confidence, while personal spending remains weak, and GDP forecasts declined sharply, says the firm.
What’s Ahead for US Economy?
S&P Global believes that the Trump administration’s shifting policy mix continues to result in a faster decline in growth in 2025. While the firm’s full-year growth rate remains unchanged at 1.9% (mainly because of higher base effects from a strong end to 2024), it expects a downshift in growth to 1.6% by Q4. It expects unemployment to drift higher, peaking at 4.6% by midyear 2026, with the public sector likely to limit the payroll expansion. This contrasts with strong contributions to job growth over the past 2 years.
S&P Global expects inflation to remain closer to 3.0% in 2025 as tariffs result in higher prices along the domestic supply chain and for end consumers. Therefore, the company anticipates one 25-basis-point federal funds rate cut for 2025, closing the year at the 4.00%-4.25% range.
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In.
US Economy to Grow in 2025, Says Russell Investments
For 2025, Russell Investments expects a soft landing for the US economy. It assumes that the new administration will ease the more aggressive stances on tariffs and immigration. As per the firm, the US economy is projected to grow at a trend-like pace of 2.0% in 2025. The Trump administration’s policies exhibit a delicate balancing act. The firm believes that tax reforms and deregulation can help stimulate growth, mainly in domestic and cyclical sectors. Its working assumption is focused on the new administration not aggressively pursuing policies that result in inflation risk.
While the tariffs and immigration controls are likely to be implemented, the firm opines that the extent is expected to be constrained by the inflation outlook. Overall, Russell Investments expects the policy mix to support business confidence, which can fuel a resurgence in capital markets and offer favorable tailwinds for private assets.
Amidst these views, let us now have a look at the 10 Best Long Term Growth Stocks to Buy According to Billionaires.
An experienced fund advisor setting parameters on investments with remaining maturities of one to three years.
Our Methodology
To list the 10 Best Long Term Growth Stocks to Buy According to Billionaires, we used a screener and Insider Monkey’s exclusive database of billionaire stock holdings to shortlist the companies that have exhibited at least ~20% revenue growth over the past 5 years. For the stocks with the same number of billionaire holdings, we have used the number of hedge fund investors as a secondary metric to rank the stocks, as of Q4 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Best Long Term Growth Stocks to Buy According to Billionaires
10. Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY)
5-Year Revenue Growth: ~59.2%
Number of Billionaire Investors: 9
Number of Hedge Funds: 49
Alnylam Pharmaceuticals, Inc. (NADDAQ:ALNY) is a leader in the study of RNA interference (RNAi) therapeutics. Canaccord Genuity reiterated a “Buy” rating on the company’s stock with the price objective of $390.00 after the recent approval of its drug AMVUTTRA® (vutrisiran). The firm’s analysts demonstrated confidence in the revenue potential of AMVUTTRA®, mainly in the treatment of ATTR-CM, which is a heart condition caused by transthyretin-mediated amyloidosis. Notably, AMVUTTRA is an RNAi therapeutic, which works upstream to deliver a rapid knockdown of TTR, addressing the disease at its source, with only 4 convenient subcutaneous doses per year.
Analysts at Canaccord believe that the market continues to underestimate AMVUTTRA®’s revenue potential. They opine that increasing diagnosis rates, treatment adoption as well as market penetration for ATTR-CM can result in significant long-term returns. As per the analysts, the drug’s market penetration and treatment rates can be a significant driver for Alnylam Pharmaceuticals, Inc. (NADDAQ:ALNY)’s stock. Notably, 2024 demonstrated healthy execution for Alnylam Pharmaceuticals, Inc. (NADDAQ:ALNY), generating product revenues of more than $1.6 billion, implying 33% YoY growth.
Fidelity Investments, an investment management company, released its Q2 2024 investor letter. Here is what the fund said:
“Lastly, not holding biopharmaceutical firm Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) (+63%) also hurt. The stock was range-bound until June 24, when it surged on news that the maker of RNA interference therapeutics achieved favorable top-line results in a late-stage clinical trial for its cardiovascular treatment, vutrisiran. Management noted the drug’s potential to address the needs of patients with a steadily progressive, debilitating and ultimately fatal disease.”
9. Moderna, Inc. (NASDAQ:MRNA)
5-Year Revenue Growth: ~122.01%
Number of Billionaire Investors: 10
Number of Hedge Funds: 44
Moderna, Inc. (NASDAQ:MRNA) is a leader in the creation of the field of messenger RNA (mRNA) medicine. The company’s pipeline extends well beyond its COVID-19 vaccine, spanning across potential therapies and preventive measures. Moderna, Inc. (NASDAQ:MRNA) has announced that the Australian Therapeutic Goods Administration (TGA) approved mRESVIA® (mRNA-1345), which is an mRNA respiratory syncytial virus (RSV) vaccine, to prevent lower respiratory tract disease caused by RSV infection in adults aged 60 years and older. Notably, mRESVIA’s approval is a significant achievement as it is the first mRNA vaccine in Australia that is approved for use against a disease beyond COVID-19.
The company has received marketing authorizations for its RSV vaccine in the US, the European Union, Canada, the United Arab Emirates, Qatar, Taiwan, and the United Kingdom. It has submitted regulatory applications in other markets worldwide. To provide a brief context, RSV is a highly contagious respiratory virus causing a substantial burden of disease, mainly in older adults. In 2025, Moderna, Inc. (NASDAQ:MRNA) remains focused on fueling sales and expanding cost efficiencies throughout the business. By 2025 end, it aims to remove ~$1 billion in costs. With robust momentum in its late-stage pipeline, Moderna, Inc. (NASDAQ:MRNA) expects multiple approvals starting this year, together with key Phase 3 readouts aiding its long-term growth.
8. Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX)
5-Year Revenue Growth: ~21.5%
Number of Billionaire Investors: 13
Number of Hedge Funds: 68
Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) is a global biotechnology company that is engaged in discovering and developing small-molecule drugs for the treatment of serious diseases. Leerink Partners analyst David Risinger reiterated the bullish stance on the company’s stock, providing a “Buy” rating. The rating is backed by factors demonstrating the company’s potential in the outpatient market. As per the analyst, Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX)’s recently-approved NaV1.8 inhibitor, JOURNAVX, can gain significant traction in the outpatient setting. Notably, on January 30, the FDA approved JOURNAVX for the treatment of adults with moderate-to-severe acute pain.
The analyst opines that the outpatient market offers a strong opportunity for JOURNAVX, mainly with patients transitioning from hospital care to home care. Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX)’s strategic initiatives have been designed to improve patient access and fuel early adoption of JOURNAVX. To provide a brief context, JOURNAVX is a first-in-class, selective, non-opioid NaV1.8 pain signal inhibitor. Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) has been advancing a portfolio of selective pain signal inhibitors with the potential to offer effective pain relief without the limitations of opioids and other available medicines.
Parnassus Investments, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:
“In the Health Care sector, we added drugmaker Eli Lilly, which has an exceptional GLP-1 franchise and a strong track record of innovation, and Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX). Vertex is a high-quality biotech company run by a strong management team that has made a promising acquisition and advanced its diabetes pipeline. The developments gave us confidence that Vertex’s innovative approach and high-quality management team will continue to achieve positive clinical outcomes and strengthen its competitive advantage.”
