5 Best Stocks To Buy and Hold Forever

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1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 302

Microsoft Corporation (NASDAQ:MSFT) ranks 1st on our list of the best stocks to buy. On February 29, Goldman Sachs reiterated a Buy rating for Microsoft Corporation (NASDAQ:MSFT) due to the company’s investments in generative artificial intelligence. The investment bank sees Microsoft in a unique position to benefit from the technological shift toward a Gen-AI tech stack, without structural changes to its profitability. Despite concerns about increased capital expenditures, Goldman Sachs believes these investments will pay off, with Gen-AI being a significant revenue growth driver for Microsoft in the near term. Microsoft’s Azure, combined with generative AI services, is seen as having the potential to scale into a $200 billion business. 

According to Insider Monkey’s fourth quarter database, 302 hedge funds were bullish on Microsoft Corporation (NASDAQ:MSFT), compared to 306 funds in the earlier quarter. Bill & Melinda Gates Foundation Trust is the largest stakeholder of the company, with 38.2 million shares worth $14.3 billion. 

RiverPark Large Growth Fund stated the following regarding Microsoft Corporation (NASDAQ:MSFT) in its fourth quarter 2023 investor letter:

“Microsoft Corporation (NASDAQ:MSFT): MSFT was a top contributor in the quarter following strong FY1Q24 earnings in late October. In that earnings report, MSFT delivered better-than-expected revenue (+13%) and earnings (+27%), with growth in both accelerating from the prior quarter. All three major segments grew revenue faster than expected, highlighted by 28% constant currency growth in Azure, the company’s cloud offering. This marked the first quarter-over-quarter acceleration for Azure in six quarters. Operating margins (48%) were 400 basis points better than expected and earnings came in 13% ahead of expectations.

Cloud-based services have become the company’s largest revenue and earnings producer. The company’s Azure platform alone has the potential to grow to more than $100 billion in annual revenue over the next decade. Overall, we believe that the company will continue to deliver double-digit revenue and EPS growth and generate an enormous amount of free cash flow to both return to shareholders and use for acquisitions.”

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