3 Monster Stocks to Hold for the Next 20 Years

Building wealth in the stock market can seem more challenging than it really is. Once you accept the fact that the market is going to occasionally sell off, it becomes easier to focus on what truly matters to long-term wealth building.

Investing in proven businesses with significant room to grow is where you want to look for great investments.

These three companies have proven models, durable demand, and clear paths to reach more customers and grow their revenues and profits over time. Here's why MercadoLibre (NASDAQ: MELI), Lululemon (NASDAQ: LULU), and Costco (NASDAQ: COST) look like compelling stocks to hold for the next 20 years.

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1. MercadoLibre

MercadoLibre is Latin America's leading e-commerce and fintech platform, and it's been delivering consistent growth for years. Revenue jumped 45% year over year in the fourth quarter as the company continues to expand access to basic financial services to an underserved population in the region.

Its online marketplace reaches 121 million unique buyers, complemented by its fast-growing payments ecosystem, Mercado Pago, with 78 million monthly active users. Mercado Pago creates a natural cross-selling engine alongside the marketplace, offering shoppers added convenience and special benefits while deepening engagement and supporting long-term growth.

The opportunity ahead remains enormous. In Mexico, one of MercadoLibre's top markets, only about half the population has a bank account, and even fewer have a credit card. That underpenetration in basic financial services could translate into years of runway for Mercado Pago's credit products. The company's credit portfolio surged 90% year over year last quarter.

MercadoLibre's total revenue has compounded at 46% annually over the past decade and 40% over the last three years. For a business operating in Latin America for 26 years, that consistency is remarkable -- and hints at how much more valuable it could be in the next 20 years as it expands and improves customer experiences. The stock's recent dip gives investors a timely chance to start a position.

2. Lululemon Athletica

Lululemon's focus on high-quality apparel and international expansion could make it one of the world's most valuable athletic apparel brands over the next 20 years. Over the past decade, revenue rose at a 19% compound annual rate, nearly matching its pace from the last three years.

The stock is down after a recent slowdown in growth. Revenue increased just 7% year over year in the latest quarter, largely due to weakness in the U.S. market. Moreover, higher tariff-related costs have pressured margins. Management expects demand trends to improve as it refreshes its product assortment this spring.

Lululemon's strong international growth shows that its brand is still resonating. This is a significant opportunity. Mainland China represented 18% of fiscal third-quarter revenue, yet it's the fastest-growing region, with sales up 46% year over year last quarter.

The athletic apparel market has been resilient and is projected to grow from $440 billion to $677 billion by 2030, according to Grand View Research. Given that large opportunity, Lululemon could be a bargain, trading at a 12 price-to-earnings ratio.

3. Costco Wholesale

Costco has followed the same effective growth playbook for decades. It wins a loyal shopper base with cutthroat pricing -- often selling goods close to wholesale prices -- while generating most of its profits from membership fees.

That value-first model has attracted 81 million paid members as of the end of fiscal 2025. Membership has climbed steadily for years, and it continues to reach more customers, with paid memberships up 6.2% in fiscal 2025 and 7.3% in fiscal 2024.

Costco's membership base could look small compared to where it might be in 20 years. This is still largely a U.S.-based business. It operates 633 warehouses in the U.S. and Puerto Rico out of 923 worldwide. China has only seven locations, and Costco's presence in Europe remains limited, with a few locations across markets such as France, Spain, and Sweden.

That leaves plenty of international runway. Investors should appreciate management's slow, deliberate expansion approach, which fits Costco's cost-disciplined culture. Management continues to highlight growth opportunities both at home and abroad.

The stock's valuation looks expensive, but this is why it's a good fit for an investor with a long time horizon. Building a position gradually through market swings can help average out the highs and lows in valuation. Costco's relentless focus on offering customers the best value makes it an unstoppable business for a 20-year investor.

John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale, Lululemon Athletica Inc., and MercadoLibre. The Motley Fool has a disclosure policy.