10 Best Stocks to Buy and Hold for 20 Years

5. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders: 166

Morgan Stanley reaffirmed an “Overweight” rating and a price objective of $220.00 on Apple Inc. (NASDAQ:AAPL)’s stock. Morgan Stanley opines that, looking beyond the current tariff uncertainties, the company’s advancements in software and hardware can accelerate the device replacement cycles and develop new opportunities for garnering service revenue. Such factors contribute to the firm’s optimistic outlook on Apple Inc. (NASDAQ:AAPL)’s stock. Wamsi Mohan, an analyst from Bank of America Securities, reiterated a “Buy” rating on the company’s stock. This analyst’s rating is backed by a combination of factors, which include the recent decline in the company’s stock price.

Notably, the stock has witnessed a fall of over ~17% on a YTD basis (through the close of April 21). As per the analyst, Apple Inc. (NASDAQ:AAPL)’s stable cash flows and earnings resiliency, together with its potential benefits stemming from AI advancements, aid the analyst’s rating. Amidst geopolitical worries and tariff risks, the company possesses strategies to mitigate such risks, like diversification of the supply chain and adjustment of pricing strategies. Over the next 2-3 decades, Apple Inc. (NASDAQ:AAPL)’s growth trajectory is expected to be driven by brand loyalty and switching costs. The company is known for its sticky ecosystem, therefore, its loyal customers are expected to continue to use iOS devices over the coming years.

Columbia Threadneedle Investments, an investment management company, published its Q4 2024 investor letter. Here is what the fund said:

“The fund maintained a position in Apple Inc. (NASDAQ:AAPL) throughout the quarter through the release of the company’s new iPhone 16 in September. Company leaders were excited about the release of the new model, as this is the first model that will feature enhanced AI capabilities through the Apple Intelligence features. Sales for the first few weeks in October and November trailed behind year over year sales from the iPhone 15, as availability of Apple Intelligence was not compatible with all iPhone models. Apple announced a partnership with OpenAI that has allowed the integration of ChatGPT into the Apple ecosystem, separate from the core Apple Intelligence features. This partnership highlights continued progress from Apple to introduce AI capabilities into its products and we expect the iPhone 17 to have even more expansive AI capabilities, increasing potential demand for the new model that is on track to be released in 2025.”