Buy-and-hold stocks don’t have to be boring. Often, investors looking for buy-and-hold stocks see recommendations centered around what can be called charitably value traps. Alternately, some recommend buy-and-hold stocks based purely on recent outperformance without looking at long-term potential or whether the company is objectively overvalued.
These buy-and-hold stocks blend the best of both worlds, with recent winds, growth potential, and fundamental underpinnings creating a foundation suitable for any long-term portfolio. Don’t let short-term fluctuations scare you away from their long-term potential, either. Some of these buy-and-hold stocks dropped slightly in recent months, but in all cases, solid tailwinds offer a compelling and viable investment thesis.
Remember to do your own due diligence when finding buy-and-hold stocks, but this list is a strong starting point that captures multiple sectors, company sizes, and opportunities for a well-rounded portfolio.
Berkshire Hathaway (BRK-A, BRK-B)
Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B) is often at the front of the line for buy-and-hold stocks; this list is no exception.
The conglomerate’s diverse portfolio includes more than 50 companies across diversified and evergreen industries such as real estate, transportation, energy, and consumer goods. These expansive holdings offer an easy way to achieve a balanced investment portfolio without picking numerous individual stocks.
Additionally, investing in Berkshire Hathaway means aligning with Warren Buffett’s value-first investment strategies. Likewise, his prudent approach, such as reducing stakes in underperforming stocks like Chevron (NYSE:CVX) to increase cash reserves, demonstrates a strategic “rebalancing” tactic that can protect your portfolio from economic downturns. In the future, you can benefit from Buffett’s tactical deployment of that cash to seize opportunities when companies face challenges.
Investing in Berkshire Hathaway provides a straightforward way to leverage the expertise of one of the world’s most successful investors. For long-term investors, few buy-and-hold stocks offer the stability and growth potential of Buffett’s Berkshire Hathaway.
Realty Income (O)
Realty Income (NYSE:O) consistently ranks among the top buy-and-hold dividend stocks for a good reason. Its status as a Dividend Aristocrat, combined with monthly distributions and a solid 5.9% forward yield, makes it a perennial favorite. After a nearly 12% decline over the past year, this stock is attractively priced for long-term investors. Likewise, Realty Income’s operational and fundamental strength remains unchanged, reinforcing its appeal to buyers today.
The company boasts an impressive 98% occupancy rate across its properties, with 80% of its retail tenants operating in sectors resilient to economic downturns. Most of these tenants are in the grocery sector, alongside convenience stores, dollar stores, and drugstores. This diverse mix ensures stability and minimizes risk, shielding Realty Income from all but the most severe economic downturns.
Realty Income’s triple-net lease model is another key advantage. This arrangement shifts all operational risks and expenses to the tenants, including property maintenance costs. This effectively shields Realty Income from rising material and labor costs, often associated with higher interest rates. Additionally, with leases typically spanning 15 years or more and renewal options in place, Realty Income enjoys a consistent stream of rental income. The average lease term until renewal is just under 10 years, providing the real estate investment trust with significant flexibility over the next decade, regardless of economic conditions.
Medtronic (MDT)
Medtronic (NYSE:MDT) stands out among buy-and-hold stocks in that it is attractive to a range of investment strategies and investor preferences, from AI enthusiasts and healthcare proponents to those seeking reliable dividend income.
Medtronic is poised to lead the healthcare AI revolution. Its long-standing partnership with AI powerhouse Nvidia (NASDAQ:NVDA) is pioneering the development of AI-integrated medical hardware. Nvidia’s healthcare vice president, Kim Powell, highlighted the significance of this collaboration, stating that it will “accelerate AI innovation by enabling a software-defined business model, with the goal of improving clinical decision-making, reducing medical variability, and driving better patient outcomes.” Given Nvidia’s industry dominance and history of king-making, Medtronic stands to gain significantly from this partnership.
Moreover, Medtronic is positioned to benefit from the long-term growth of the medical device industry, which is expected to reach $795 billion by 2030, growing at a steady 5.2% compound annual growth rate since 2015. Medtronic holds one of the largest market shares in this industry, second only to diversified firms like McKesson Corporation (NYSE:MCK) that also sell pharmaceuticals.
For value investors, Medtronic is an attractive option among buy-and-hold stocks. The company boasts a sustainable price-to-book ratio of 1.9x and offers a solid total yield of 5.3%, making it a reliable choice for those looking to build a resilient portfolio.
Crowdstrike Holdings (CRWD)
If any growth stock in today’s crowded, overvalued landscape can be classified as a player among buy and hold stocks, it’s Crowdstrike Holdings (NASDAQ:CRWD). Businesses face many challenges today and grapple with geopolitical conflicts, natural disasters, and supply chain disruptions.
Despite these issues, cyber threats remain the top global risk for most business owners, both small and large. Concerns about cyber threats, data breaches, digital infrastructure vulnerabilities, and ransomware attempts are at the forefront of their minds.
Crowdstrike, a leading cybersecurity stock, is positioned to address these growing threats as technological advancements demand more robust security solutions. The company already serves a diverse clientele, including government agencies, corporations, small businesses, and educational institutions.
Impressively, Crowdstrike’s revenue has significantly increased over the past five quarters, with the last four marking its first consecutive profitable periods. These incremental and successive income boosts, particularly in today’s economic climate, suggest a promising future for Crowdstrike as it continues to lead in digital security and protection.
Palantir (PLTR)
Palantir (NYSE:PLTR) is a stock that demands attention. Known for its cutting-edge data analytics and AI-driven solutions, Palantir carved out a niche in both the public and private sectors. Government agencies, commercial enterprises, and non-profit organizations leverage its platforms, Palantir Gotham and Palantir Foundry, to make sense of complex data and drive informed decision-making.
Despite some volatility in its stock price, Palantir’s growth potential remains strong and remarkably resilient this year, consistently trading in the $25 range. The company keeps nailing high-profile contracts, such as its recent multi-million dollar deals with the U.S. Department of Defense and cutting-edge space companies. These contracts provide steady revenue streams and reinforce Palantir’s reputation as a trusted partner in the data analytics space.
Palantir is an easy pick among buy-and-hold stocks for investors interested in capturing AI and the big data sector’s continued potential. Its continuous innovation, expanding client base, and strategic positioning make it a standout player poised for long-term growth.
Celsius Holdings (CELH)
If you had to guess the best-performing stock of the past few decades, you’d likely think of a big-name tech firm or one of the “Magnificent Seven” stocks. However, Monster Beverage (NASDAQ:MNST) takes the crown, delivering an astounding 31% annualized return since 1998. In comparison, Apple (NASDAQ:AAPL), the second-best performer, achieved a “mere” 28% annual gain.
While Monster still has some growth potential, the “next big thing” in beverage stocks is undoubtedly Celsius Holdings (NASDAQ:CELH). A January downgrade from Bank of America temporarily pushed share prices down, dropping 3% since then, but that temporary dip presents a prime entry point for investors. Celsius is not resting on its laurels; the company is aggressively expanding into new markets, including Canada, the UK, and Ireland.
Bank of America’s concerns about flatlining market share in the saturated U.S. market may have merit, but Celsius’ international growth strategy offers a renewed pathway for rapid expansion. With these new avenues, Celsius is well-positioned to continue its impressive growth trajectory.
Albemarle (ALB)
Albemarle (NYSE:ALB) is having a tough year amid lithium spot pricing concerns and a string of analyst downgrades. However, these short-term setbacks shouldn’t deter you from considering this stock for long-term gains. The downgrades were mainly influenced by temporary fluctuations in electric vehicle demand, which overlook Albemarle’s strong long-term potential.
Albemarle specializes in lithium production, and the future demand for lithium looks exceptionally bright. Projections show that by 2030, lithium demand will exceed supply by 500,000 tons annually. These promising growth prospects suggest that concerns about the viability of lithium producers are overblown and that Albemarle’s recent downturn doesn’t reflect its long-term potential.
Albemarle’s strategic positioning makes it stand out, especially considering the massive lithium demand sector. By 2025, experts predict China will account for nearly half of the global lithium demand. Albemarle’s refineries are geographically close to Chinese manufacturing facilities, enabling efficient supply chains. This proximity positions Albemarle as a leading lithium producer ready to meet China’s increasing demand for this essential resource, making it an excellent choice for investors looking to capitalize on sustainable and green energy transitions.
On the date of publication, Jeremy Flint held no positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor held LONG positions in NVDA, PLTR and AAPL.