One of my favorite posts in memory was a MarketWatch article from last year that discussed the 10 best stocks of the past 20 years. No. 1 on the list was a railroad — Kansas City Southern (KSU) — whose stock achieved a cumulative total return of 19,030% between March 1992 and March 2012.
All told, the 10 stocks performed almost 26 times better over those two decades than the S&P 500.
Naturally, that got me thinking about the best stocks for the next 20 years.
Considering MarketWatch selected stocks included in the Russell 3000, I’ll play ball and do the same. However, instead of playing the field, I’ll pick two small-cap stocks, two midcaps and one large-cap company. I especially like the midcaps because they tend to be the best and most consistent performers over the long term.
Without further ado, here are my five best stocks for the next 20 years: