In this article, we will discuss the 10 Best Stocks to Invest in for the Next 10 Years.
As per Lukas Brandl-Cheng, Investment Strategy Analyst at Vanguard Europe, the US equities were driven by healthy earnings growth and increasing P/E ratios in recent years. The analyst stated that, over the past decade, US equities posted ~14.8% annualised return, exceeding the global ex-US equities (7.0%) and euro area equities (7.8%). The market was concentrated in growth-oriented sectors, like technology, that aid elevated valuations. That said, while expansion in valuation and the technology sector attracted attention in the US, broad-based earnings growth (mainly because of revenue) dominated the US outperformance.
Small- and Mid-cap Are Attractive, Says Macquarie
Within the US equity market, Macquarie prefers quality companies throughout market capitalisations, even though valuation and policy tailwinds remain more pronounced in profitable small- and mid-cap stocks. The firm opines that these stocks remain attractive heading into 2025, considering the current valuations, earnings growth potential, anticipations of rate cuts by the US Fed, and an underweight position by several investors to this asset class. Mr. Trump’s policy agenda is expected to be particularly beneficial for the US small- and mid-cap equities.
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In.
Reaping the Benefits of AI Transformation
As per Lukas Brandl-Cheng, the higher market concentration in the US showcases that numerous large growth companies have been dominating the S&P 500 Index. Such companies have made advancements associated with AI, which resulted in propelling the US equity valuations to multi-decade highs. While the analyst believes that AI is expected to be positive for the broader economy, it also suggests that investors should not go overweight on technology stocks. However, there are expectations of tug-of-war between productivity improvements due to AI and higher fiscal deficits because of higher, age-related government spending to affirm the value of value-oriented stocks, including health care or financials.
If there is a broadening out of productivity improvements throughout the economy, the analyst anticipates profitability improvements across sectors, and value stocks might come into favour and surpass the equity market. On the other hand, if AI leads to disappointment, the growth projections reflected in the elevated valuations of technology stocks might become difficult to meet, while cheaper value-oriented stocks might encounter comparatively fewer headwinds.
As a result, the analyst suggests that a diversified exposure throughout global equity markets provides a reasonable positioning for either scenario, without the risk of not investing in the best-performing industries or regions of the future.
Amidst these trends, we will now have a look at the 10 Best Stocks to Invest in for the Next 10 Years.
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Our Methodology
To list the 10 Best Stocks to Invest in for the Next 10 Years, we conducted extensive research and sifted through several online rankings to shortlist the companies that are well-placed for the next 10 years. Next, we mentioned the hedge fund sentiments around each stock, as of Q4 2024. Finally, the stocks were arranged in ascending order of their hedge fund sentiments.
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 Stocks to Invest in for the Next 10 Years
10. Enterprise Products Partners L.P. (NYSE:EPD)
Number of Hedge Fund Holders: 29
Enterprise Products Partners L.P. (NYSE:EPD) is engaged in providing midstream energy services to producers and consumers of natural gas, natural gas liquids (NGLs), crude oil, petrochemicals, and refined products. The company’s diversification is expected to support its long-term growth prospects. Instead of being an oil and gas company, Enterprise Products Partners L.P. (NYSE:EPD)’s diversification spanning across refined products and petrochemicals can support it against broader market fluctuations. The company continues to see significant opportunities for the next several years.
Enterprise Products Partners L.P. (NYSE:EPD) has ~$7.6 billion of major growth capital projects under construction. These projects are expected to go into service over the next 3 years. Substantially all of these projects are associated with its natural gas and NGL businesses serving the Permian Basin and related expansions to the downstream infrastructure to aid increasing domestic and international demand. Such projects are backed by long-term contracts and offer some visibility to continuing net income and cash flow per unit growth.
The global energy demand continues to shift towards natural gas and LNG as cleaner alternatives to oil and coal. Therefore, Enterprise Products Partners L.P. (NYSE:EPD) is well-positioned for growth over the next decade through pipeline expansions, LNG & NGL exports, energy transition investments, and petrochemicals.
9. Roblox Corporation (NYSE:RBLX)
Number of Hedge Fund Holders: 61
Roblox Corporation (NYSE:RBLX) operates an immersive platform for connection and communication. The company develops and operates Roblox, which is an online platform enabling users to share, create, and play games. Benchmark analyst Mike Hickey upped the company’s price target to $71 from $60, reaffirming a “Buy” rating. The analyst remains optimistic about the company’s long-term growth strategy, demonstrating that bookings growth can potentially surpass the growth in user and hour engagement. This is projected to be fueled by Roblox Corporation (NYSE:RBLX)’s ongoing monetization efforts. The company plans to support 10% of the global gaming content market, with continuing investments in its virtual economy, app performance, and AI-powered discovery and safety.
If the company succeeds in capturing this market size, it can see double-digit revenue growth on a sustainable basis, fueling strong returns over the upcoming decade. Additionally, Roblox Corporation (NYSE:RBLX)’s foray into advertising and e-commerce offers strong growth opportunities. The company’s partnership with Shopify to allow creators to sell physical merchandise within Roblox experiences can result in the development of a strong e-commerce ecosystem within the platform. Overall, Roblox Corporation (NYSE:RBLX)’s growth over the next decade is expected to be backed by AI usage for content creation, advertising, and enhancing monetization via in-game economies.
SaltLight Capital, an investment management company, released its Q3 2024 investor letter. Here is what the fund said:
“Roblox Corporation (NYSE:RBLX) has firmly established itself as the dominant player in user-generated gaming within Western markets. Meanwhile, Tencent has developed a similar ecosystem in China with its WeChat Mini-games platform. Owning both gives us a unique vantage point to assess the evolving landscape of user-generated gaming platforms globally.
At its recent investor day, Roblox set an ambitious target of reaching 10% of gaming content revenue, of which it estimates the total pool is around $180bn (for context, in the last twelve months, it made $4bn in bookings).
We think this will be a challenging target, but it will be positive for the business directionally. The reason is that Roblox has spent the last three years heavily investing in re-engineering its game platform to be high fidelity, performant and widely available across platforms. They also share economics with their creators to the point now that the absolute numbers in highly engaged games are enough to support a small game studio. The result is that the quality of games has materially improved, attracting additional engagement – particularly from older users…” (Click here to read the full text)
8. Take-Two Interactive Software, Inc. (NASDAQ:TTWO)
Number of Hedge Fund Holders: 67
Take-Two Interactive Software, Inc. (NASDAQ:TTWO) develops, publishes, and markets interactive entertainment solutions for consumers. UBS, via analyst Christopher Schoell, upped the company’s stock from “Neutral” to “Buy,” increasing the price objective from $170 to $230 per share. As per the analyst, the combination of increased demand for Grand Theft Auto VI and a grand pipeline to follow highlights that Take-Two Interactive Software, Inc. (NASDAQ:TTWO) is well-placed to achieve growth over the short and long term.
Even though the expectations for GTA VI are significantly high, there is potential for the game to surpass even the optimistic expectations. As we know, the Grand Theft Auto franchise possesses a history of breaking sales records and making new benchmarks for the industry. Take-Two Interactive Software, Inc. (NASDAQ:TTWO)’s tactic of rolling out games from the current franchises is expected to support its stock over the next 10 years or so. That’s because it reduces the risk of lower sales, since the current franchises have a strong fan base, and there are expectations that they will also buy the latest release.
The demand for Grand Theft Auto VI is so strong that many gamers have started to plan to cut purchases of other games. UBS stated that 70% of gamers in its study are expected to follow this strategy. Therefore, Take-Two Interactive Software, Inc. (NASDAQ:TTWO)’s tactic is well-proven and can help it deliver strong returns over the next decade. In its Q3 2025 earnings call, the company highlighted that GTA V crossed 3 console generations and still remains the best-selling title. GTA Online, now more than 10 years old, still has strong ongoing engagement. To date (as at Q3 2025), GTA V has sold in more than 210 million units worldwide.
7. American Express Company (NYSE:AXP)
Number of Hedge Fund Holders: 71
American Express Company (NYSE:AXP) operates as an integrated payments company. Gustavo Gala, an analyst from Monness, reiterated a “Buy” rating on the company’s stock. The associated price target has been kept the same at $330.00. The analyst’s rating is backed by factors highlighting American Express Company (NYSE:AXP)’s strategic position and growth prospects. Despite the stock’s rich valuation, the company is recognized as a leading network which possesses the potential for upward revisions in earnings projections as compared to its peers, says the analyst.
This potential stems from the robust earnings growth predictions. American Express Company (NYSE:AXP)’s strong balance sheet and initiatives to tap a broader customer base earlier in their financial journeys continue to support elevated valuations. The company’s success in bringing in new accounts, mainly among Millennials and Gen-Z consumers, provides a significant opportunity for future growth. These consumers are expected to fuel American Express Company (NYSE:AXP)’s growth over the next decade or so given their digital preferences, spending habits, and demand for premium experiences.
Such younger demographics provide a long-term value proposition, as they enter prime earning years and raise their spending and borrowing. Bretton Capital Management, an investment management company, released Q4 2024 investor letter. Here is what the fund said:
“American Express Company (NYSE:AXP) was our best performing stock last year, returning 60%, which was on top of 2023’s 29%. Its premium credit cards are more popular than ever, and its moderately affluent customer base continues to spend. American Express did especially well signing up younger cardholders, a great sign that its growth can be sustained for years to come. The combination of healthy revenue growth and tight expense control led to an earnings-per-share growth of 25%.”
6. Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Holders: 115
Eli Lilly and Company (NYSE:LLY) is engaged in discovering, developing, and marketing human pharmaceuticals. The company’s revenue in Q4 2024 witnessed an increase of 45% to $13.53 billion due to the volume growth from Mounjaro and Zepbound. Non-incretin revenue increased 20% as compared to Q4 2023. Furthermore, Eli Lilly and Company (NYSE:LLY) has made progress in its pipeline, including the approval of Zepbound in the US for moderate-to-severe obstructive sleep apnea in adults with obesity and the approval of Omvoh in the US for moderately to severely active Crohn’s disease.
As per Roots Analysis, the global anti-obesity drugs market size is expected to grow from $12.8 billion in 2024 to $104.9 billion in 2035. For Q4 2024, US Zepbound revenue came in at $1.91 billion as compared with $175.8 million in Q4 2023. Zepbound was launched in the US for the treatment of adult patients with obesity or overweight with weight-related comorbidities in November 2023.
Eli Lilly and Company (NYSE:LLY) expects 2025 revenue of between $58.0 billion – $61.0 billion. The midpoint demonstrates ~32% growth YoY, fueled by new Lilly medicines like Zepbound, Mounjaro, Jaypirca, Ebglyss, Omvoh and Kisunla, approvals of new indications for existing Lilly medicines, launches of Mounjaro in additional worldwide markets, among other factors. Given Eli Lilly and Company (NYSE:LLY)’s market position and strong market growth expectations (as highlighted by Roots Analysis), the company remains well-placed for growth over the next decade. RiverPark Advisors, an investment advisory firm and sponsor of the RiverPark family of mutual funds, released its Q4 2024 investor letter. Here is what the fund said:
“Eli Lilly and Company (NYSE:LLY): LLY was a top detractor in the fourth quarter following a rare revenue miss in the company’s 3Q update. The greater than $1 billion miss in the tirzepatide complex (Mounjaro/Zepbound) was caused by a combination of factors, including wholesaler stocking patterns (2Q inventory build, 3Q sell through), refrigerated supply chain constraints, timing of the company’s direct-to-consumer efforts, and the pace of international market launches. We believe the diabetes/obesity/weight-loss market is enormous and that current GLP-1 drugs, though no longer supply constrained, are greatly in demand. We are confident that LLY’s recent sales shortfall was supply chain-related and that the company’s tirzepatide franchise growth will soon reaccelerate.
LLY discovers, develops, manufactures, and markets pharmaceutical products. The company manufactures and distributes products through facilities in the United States and seven other countries and sells into 110 countries. The company has a broad and deep portfolio of products including a focus on diabetes, oncology, immunology and neuroscience. More recently, LLY’s GLP-1 diabetes drug Mounjaro and obesity drug Zepbound, have delivered strong revenue growth, and investors are optimistic that the company’s recently approved Alzheimer drug, Kisunla, will add to that growth.
LLY has a stable portfolio of franchise products, which enables it to invest heavily in its product pipeline. We believe that this combination of franchise and growth products will drive high teens revenue growth and a four-fold increase in free cash flow in the next five years.”
5. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 126
Tesla, Inc. (NASDAQ:TSLA) designs, develops, manufactures, leases, and sells EVs, and energy generation and storage systems. On March 6, TD Cowen upgraded the company’s stock to “Buy” from “Hold” with a price target of $388. As per the firm, the potential catalysts include new EV launches, deployment of the autonomous vehicle technology without driver supervision, along with advancements in robotics. Tesla, Inc. (NASDAQ:TSLA)’s investments in AI and autonomous driving technology can create substantial value over and above its core automotive business.
Tesla, Inc. (NASDAQ:TSLA) plans to roll out a robotaxi service and start selling humanoid robots. Notably, these are expected to act as significant growth opportunities over the upcoming decade. The Robotaxi service has the potential to revolutionize urban transportation and offer Tesla, Inc. (NASDAQ:TSLA) with a lucrative new business model. The company’s autonomous driving strategy is beyond self-driving cars. Its focus revolves around establishing an AI-powered ecosystem spanning energy, transportation, software, and robotics. Over the upcoming decade, such investments can transform the giant into an AI-first technology company possessing several high-margin revenue sources.
Baron Funds, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:
“Tesla, Inc. (NASDAQ:TSLA) designs, manufactures, and sells electric vehicles, related software and components, and solar and energy storage products. Shares rose on growth in the energy segment, the promise of new model launches in 2025, and increasing investor confidence in Tesla’s AI initiatives. Despite macroeconomic challenges, delivery data in major markets like China have shown considerable improvement. The energy and automotive segments demonstrated stronger-than-expected profitability. Tesla also expanded its advanced computing center in Texas, released improved version of its software-enhanced driving solution, and is set to launch new mass market vehicles years after the initial rollouts of Models 3 and Y. Expectations of deregulation under the incoming administration point to the potential acceleration of new technology rollouts, which could enhance Tesla’s leadership position in real world AI and bolster investor confidence that Tesla will benefit from these large and attractive growth opportunities.”
4. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 166
Apple Inc. (NASDAQ:AAPL)’s stock received a “Buy” rating from Wedbush’s analyst Daniel Ives, thanks to its deal with Alibaba, which is expected to be a critical driver for the company’s growth in China. The analyst has kept the price target steady at $325. Alibaba Group Chairman has confirmed that the company was partnering with the US tech giant to roll out AI for iPhones sold in China. CNBC reported that the announcement can provide clarity on Apple Inc. (NASDAQ:AAPL)’s AI strategy in China, supporting it in tackling increased competition as the iPhone’s market share continues to erode in the world’s leading smartphone market.
While Apple Inc. (NASDAQ:AAPL) has lost market share to Huawei over the previous year, Wedbush expects that the company’s AI-powered features in the upcoming iPhones will support the company regain its position in the market. Overall, the analyst believes that Apple Inc. (NASDAQ:AAPL)’s collaboration with Alibaba is expected to play an important role in its expansion in China, mainly in advancing AI initiatives. The company’s partnership with Alibaba is expected to enhance its AI capabilities, strengthen its competitive position in China, and ensure regulatory compliance with favourable implications for its global operations over the upcoming decade.
Tsai Capital, an investment management company, released the Q4 investor letter. Here is what the fund said:
“We initiated our investment in Apple Inc. (NASDAQ:AAPL) in 2016 and elevated it to a core holding in 2018, the same year the company introduced its redesigned 13-inch and 15-inch MacBook Pro models. Under Tim Cook’s visionary leadership, Apple has consistently redefined innovation in hardware and software.
The September 2024 launch of the iPhone 16, with its groundbreaking AI capabilities, including enhanced image generation tools, marks another inflection point. We believe this transformative device is the foundation for an AI-driven supercycle and could entice approximately 100 million consumers to upgrade, reinforcing Apple’s leadership in the industry.
Today, Apple’s ecosystem spans over two billion active devices, supported by a rapidly-growing base of subscription services. This strategy has helped to turbocharge customer engagement and spending. In the most recent fiscal year, which ended in September 2024, Apple’s high-margin services division accounted for 39.3% of total gross profits, up from 32.8% just two years ago.
Apple’s financial footing remains exceptional, with approximately $50 billion in net cash and marketable securities. Looking ahead, we expect earnings-per-share growth to outpace revenue growth, driven by margin expansion and continued share buybacks.”
3. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 223
Mark Lipacis, an analyst from Evercore ISI, maintained a “Buy” rating on NVIDIA Corporation (NASDAQ:NVDA)’s stock, while the associated price target was kept the same at $190.00. The rating is backed by factors positioning the company favorably in the broader market. The analyst believes that the company remains a preferred platform for hyperscalers because of its strong ecosystem, with demand for its GPUs continuing to outstrip supply. Moreover, AI advancements, like improved cost efficiencies and higher computational needs for multi-modal models, can fuel further adoption of NVIDIA Corporation (NASDAQ:NVDA)’s technology, aiding the long-term growth thesis.
The company remains well-placed to achieve strong growth over the upcoming decade, thanks to the dynamic end markets it can reap the benefits from. The pivot to accelerated computing in data centers in a bid to accelerate tasks and decrease consumption of power and operating costs can result in significant revenue opportunities for NVIDIA Corporation (NASDAQ:NVDA). The demand for AI-specific software and hardware solutions is expected to grow, which will further strengthen the company’s dominance for the years to come. Therefore, expansion into data centers, software, and custom AI chips will help NVIDIA Corporation (NASDAQ:NVDA) see exponential revenue growth for the next decade.
Brown Advisors, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:
“The main driver of our 2024 relative underperformance was not being invested in NVIDIA Corporation (NASDAQ:NVDA). Since ChatGPT introduced the power of generative artificial intelligence to the world on 30 November 2022, the Global Leaders Strategy has outperformed its benchmark despite being underweight the USA and specifically underweight the “Magnificent Seven”.7 2024 underperformance of -2.81% versus our benchmark was almost precisely matched by the individual outperformance of NVIDIA, which we did not own. On balance the rest of the portfolio is doing just fine albeit with areas of strength (AI) and weakness (EM financials) discussed below.
We wrote about the concentration within global indexes last year and this continued with only 29% of companies within the ACWI Index at the start of 2024 outperforming this benchmark over the year. Our capital allocation added value in 2024 as five of our top ten largest weights over the year were also in our top ten percentage winners. Conversely, within our ten worst performers, seven were also amongst our smallest ten weights. Capital allocation is critical when index hit rates are below 50%…” (Click here to read the full text)
2. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 262
Morningstar has given Meta Platforms, Inc. (NASDAQ:META) a wide economic moat rating because of its intangible assets and the potent network effect around the family of apps. As per the firm, the FoA’s strong competitive advantages are expected to enable the company to garner returns over its cost of capital over the next 2 decades. Notably, Meta Platforms, Inc. (NASDAQ:META)’s FoA segment consists of revenue from its social media applications such as Facebook, Instagram, WhatsApp, and Messenger. Morningstar believes that the company has been carefully using its investments in AI to improve its content recommendation and ad-monetization models, with its strong ad sales supporting the argument.
Meta Platforms, Inc. (NASDAQ:META)’s significant investments in AI are expected to help it achieve significant revenue growth throughout its platforms for at least the next decade. The company expects its full year 2025 capital expenses of between $60 billion – $65 billion and its capex growth in 2025 is expected to be driven by higher investment to support both its generative AI efforts and core business. Meta Platforms, Inc. (NASDAQ:META)’s investments are expected to cement its leadership position in digital advertising, social media, and metaverse.
Rowan Street Capital, an investment management company, released its Q4 2024 investor letter. Here is what the firm said:
“Meta Platforms, Inc. (NASDAQ:META): Investment Initiated: April 2018: Internal Rate of Return (IRR*): 22% *IRR represents the annualized rate of return on an investment, accounting for the timing and magnitude of cash flows over the holding period.
For META, our 22% IRR aligns closely with the company’s compounded growth in earnings per share (EPS) and free cash flow per share during the 6 years holding period.
Looking ahead, Meta is expected to grow its revenues, earnings, and free cash flow per share at mid-teens rates over the next two years. There’s a good possibility that it could exceed these estimates, considering the breadth of growth initiatives currently in place, such as advancements in Al, monetization of Reels, expansion into business messaging, and the ongoing development of the metaverse…” (Click here to read the full text)
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 339
New Street Research updated its outlook on Amazon.com, Inc. (NASDAQ:AMZN)’s stock, with analyst Dan Salmon raising the price objective to $280 from $234. The analyst has emphasized AWS as a critical driver for the company’s future financial performance. The updated price target stems from a combination of increased projected revenues and operating margins from AWS. In the recent Q4 2024 earnings call, Amazon.com, Inc. (NASDAQ:AMZN)’s management highlighted spending $26.3 billion in capex. As per the call, it reasonably represents what one can expect in an annualized capex rate in 2025. Notably, the vast majority of that capex spend is on AI for AWS.
Amazon.com, Inc. (NASDAQ:AMZN) remains significantly focused on AI. In AWS, improved AI capabilities can result in the development of new, high-value services attracting enterprise customers and increasing the revenue per user. The integration of AI into the company’s e-commerce platform can improve personalization, resulting in higher conversion rates and customer loyalty.
Through making continuous investments in AI, Amazon.com, Inc. (NASDAQ:AMZN) continues to place itself as a leader across multiple high-growth areas for the next decade, including advertising, cloud computing and automation. The company continues to improve its AI assistant, Alexa, and rolled out the Rufus shopping assistant as well as the Nova AI model. RiverPark Advisors, an investment advisory firm and sponsor of the RiverPark family of mutual funds, released its Q4 2024 investor letter. Here is what the fund said:
“Amazon.com, Inc. (NASDAQ:AMZN): Amazon was our top contributor in the fourth quarter following third quarter results of slightly better than expected revenue and much stronger than expected operating income. 3Q operating income of $17.4 billion exceeded company guidance of $11.5-15 billion (and Street estimates of $14.7 billion), driven by margin expansion across all three major segments, including gross/net margins of 38% at AWS, up from 30%. In addition, the company reported an acceleration in e-commerce demand both domestically and internationally, and accelerated growth of Prime paid memberships. The company guided to 4Q operating income of roughly $18 billion driven by the same positive factors that impacted 3Q.
With its ability to continue its market share gains in its three leading businesses (e-commerce, web services and online advertising), plus a multi-year operating margin expansion opportunity (from improved e-commerce margins and greater contribution from the faster growing, higher margin AWS and advertising segments), we believe Amazon remains one of the best-positioned global growth companies in the world.”
While we acknowledge the potential of AMZN as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued AI stock that is more promising than AMZN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
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