10 Best Stocks to Buy and Hold for 20 Years

7. Costco Wholesale Corporation (NASDAQ:COST)

Number of Hedge Fund Holders: 96

Costco Wholesale Corporation (NASDAQ:COST) is engaged in the operation of membership warehouses. Analyst Zhihan Ma of Bernstein is optimistic about the company. This optimism stems from a combination of factors demonstrating the company’s strong market position and growth potential. As per the analyst, Costco Wholesale Corporation (NASDAQ:COST) is a high-quality company possessing numerous opportunities for global warehouse expansion, which suggests a long-term growth trajectory.

Furthermore, Costco Wholesale Corporation (NASDAQ:COST)’s business model, demonstrated by limited SKUs and a treasure hunt approach, offers the company significant bargaining power and flexibility when it comes to adapting to changes in tariffs, added Ma. Costco Wholesale Corporation (NASDAQ:COST)’s membership trends are robust, with healthy renewal rates hinting at a loyal customer base. As of Q2 2025, the company reported a worldwide membership renewal rate of 90.5%. Also, Morningstar believes that the company has a unique edge because of its loyal membership base, impressive scale, and meticulous cost management. Therefore, over the next 2-3 decades, the company’s membership-based business model and high-quality products at low prices are expected to provide it with a competitive edge.

Parnassus Investments, an investment management company, released its Q2 2024 investor letter. Here is what the fund said:

“Costco Wholesale Corporation (NASDAQ:COST) posted strong results for the third quarter of fiscal 2024, with a robust increase in net sales and strength in both U.S. and international markets. Bucking the trend of weakening demand for discretionary items that has pressured many other retailers, Costco reported growth in nonfood sales.”