Long-term buy and hold investing sounds great. Indeed, some of the best returns of all time, from some of the greatest investors who have ever lived (ahem, Warren Buffett) have come from buying large positions in solid companies, and holding these positions for very long periods of time. Great investors think in decades, while traders often see minimal returns relative to the rest.
That’s a generalization, but I think it’s mostly true. As acclaimed late investor Charlie Munger said in the past, the money made in investing isn’t generally made in the buying or the selling, but in the waiting. It’s the patience part that I personally continue to need to contend with, and I’m sure that reality is similar for many readers out there.
The problem is trying to identify individual stocks that can fit one’s long-term investing profile, risk tolerance and total appreciation goals. In my view, these three companies are worth considering as long-term growth holdings, and they’re among the top equities on my current watch list.
Meta Platforms (META)
A Magnificent 7 stalwart, Meta Platforms (NASDAQ:META | META Price Prediction) really needs no introduction for most investors. The parent company of Facebook, Instagram, WhatsApp and a host of other social media applications, Meta has turned into an absolute juggernaut in the world of online advertising and artificial intelligence.
Emerging from its efficiency reset in 2022, Meta has produced absolutely incredible top and bottom line growth for the past three years. In terms of fundamental improvement, there are few large-cap names that have turned the corner in the same way Meta has over this period. I think that’s fair to say.
As a long-term holding, Meta’s core social media business provides the cash-producing engine, allowing the company to make large bets on future technology investors want. What was a massive investment cycle in the post-pandemic era into the metaverse has since turned into massive spending on the company’s AI ambitions, with its Llama models (and other AI applications and integrations within its ecosystem) boosting expectations of future cash flow growth over time.
This past quarter, Meta posted a very impressive earnings beat, showing a re-acceleration of growth and improved ad demand as key fundamental drivers of its share price improvement. Wall Street forecasts have also improved, calling for full year earnings to rise in the high-teens. Simply put, few companies of Meta’s size can realistically see such significant growth this year, positioning this stock as one of the cheapest and highest-growth options in the Mag 7 worth buying right now. That’s just my two cents.
Micron Technology (MU)
Another top tech stock I think provides investors with excellent exposure to the AI hardware buildout is Micron Technology (NASDAQ:MU). Shares of this pure-play AI beneficiary have been on an absolute tear of late, with MU stock rising a whopping 330% over the course of the past year.
As a beneficiary of supply shortages in the memory market (particularly in the DRAM space), Micron’s most recent earnings report highlighted the kind of margin expansion and revenue/earnings growth investors expected to see (and more). Bringing in EPS of $4.78 for the quarter (beating Street estimates by more than 20%) and seeing its revenue surge by nearly 50% year-over-year, it’s becoming clear to some investors that memory is the sub-sector of the AI buildout investors should have been focused on a year ago, or so.
Moving forward, the question is whether new supply being brought on by Micron and its competitors will chip away at this glut. Most experts believe that the rapid growth in memory demand should continue to outpace future production growth, meaning this is a stock I think can portray the kinds of earnings beat is showed in fiscal Q1 of 2026 on a go-forward basis.
With gross margins potentially moving into the mid-60% range in 2026, this is a company I think investors should ignore at their own peril.
ServiceNow (NOW)
The final pick on this list is one tech stock which has been absolutely decimated of late. ServiceNow (NASDAQ:NOW) has seen its share price be cut in half over the course of the past year, as concerns around the AI buildout (and what that means for enterprise software companies like ServiceNow around its future earnings and cash flow upside) have proliferated.
That said, I’m going to focus my energy on the enterprise nature of ServiceNow’s business model. As a key purveyor of solutions to very large enterprise customers with hundreds or thousands of screens, this is a company that is still seeing rapid growth despite concerns around AI eventually eating ServiceNow’s lunch.
In fact, an argument could be made that ServiceNow is utilizing AI to accelerate its growth, rather than cannabilize its long-term upside. I think that’s the correct narrative, with this company now trading at its lowest multiple in years.
With product-led momentum translating into rapid broad-based revenue growth, SeviceNow’s EPS growth north of 50% and its impressive cash flow growth above 30% per year present a growth stock with incredible upside trading at a discount to historical multiples. That’s a story I like to see.