Is Apple Inc. (AAPL) the Best Stock to Buy and Hold for 20 Years?
April 24, 2025
We recently published a list of 10 Best Stocks to Buy and Hold for 20 Years. In this article, we are going to take a look at where Apple Inc. (NASDAQ:AAPL) stands against other best stocks to buy and hold for 20 years.
As per Ameriprise Financials, the initial months of 2025 were tough for investors. This is because leading US stock indexes ended the first quarter meaningfully lower, countering the investor projections that stocks will continue to move northwards after the 2 strong years of returns. Notably, the tariff uncertainty has impacted the markets this year, while recession odds are increasing, and global trade frictions continue to increase. Since major market areas have corrected from the recent highs, and the outlook has become guarded, the investment firm believes that maintaining a balanced perspective of current conditions remains important during periods of market stress.
Ameriprise Financial opines that Q2 2025 is expected to bring as much uncertainty and volatility for investors as Q1 2025. That being said, the investment firm believes that the bullish case for stocks is expected to prevail long term, considering the current firm US economic and profit conditions. However, the threat of Trump’s tariff policies and the possible retaliatory tariffs can change the broader market dynamics.
Nevertheless, the investors should not deviate from the well-diversified portfolio. As per Ameriprise Financial, the investors are required to focus on holding high-quality assets throughout their portfolio, make sure that their allocations are in line with their risk tolerance, and that they take a longer-term view of the current market stress, which, historically, can result in opportunities to dollar-cost average in the high-quality assets.
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In.
As per Ameriprise Financial, if a recession is avoided, considering the recent tariff dynamics, the current stock levels can provide attractive entry points for investors who plan to dollar-cost average in the volatility. Furthermore, the US economy and S&P 500 Index corporate profits are projected to grow, says the firm. While it remains difficult to project where the economy and corporate profits can move over the near-to-intermediate term as a result of current tariff policies, the US economy and corporate earnings are expected to remain positive in H1 2025, says Ameriprise Financial.
The corporate profit margins are at strong levels relative to history, which can support companies in navigating tariff worries and stabilize demand and profits, especially if these tariff impacts are temporary. On average, when the sentiment is significantly weak and there is increased uncertainty about policy, some clarity emerges. And with this, the stock performance tends to improve over the upcoming 6 to 12 months, says the investment management firm.
To list the 10 Best Stocks to Buy and Hold for 20 Years, we sifted through several financial media reports to choose well-established and stable companies. After getting an extended list of the stocks, we shortlisted the ones that were the most popular among hedge funds, as of Q4 2024.
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).
A wide view of an Apple store, showing the range of products the company offers.
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.”
Overall, AAPL ranks 5th on our list of best stocks to buy and hold for 20 years. While we acknowledge the potential of AAPL 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. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for a deeply undervalued AI stock that is more promising than AAPL but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
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