Three Strategic Stocks for Smart Long-Term Investment

Investing in the Stock market can be a savvy choice. With discipline and patience, it can lead to substantial wealth and financial independence.

Experienced investors understand that diversifying a portfolio with quality stocks is essential. By distributing your investments among various strong companies with competitive advantages, you position yourself to benefit from economic growth, allowing compounding returns to work in your favor.

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Here are three recommended stocks to consider as you begin your investment journey.

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Investing in Progressive

The insurance sector often receives less attention, perceived as traditional and unexciting. Yet, Progressive (NYSE: PGR) remains a standout in innovation and underwriting. As the second-largest automotive insurer in the U.S., trailing only State Farm, Progressive has continuously excelled in the competitive insurance landscape.

For context, a $10,000 investment in Progressive three decades ago would now be worth over $1.7 million. This remarkable growth illustrates the company’s effective underwriting and ability to attract quality drivers.

Progressive consistently aims for an underwriting profit of at least $4 for every $100 of premiums written. Early adoption of telematics has allowed the company to personalize rates, attracting lower-risk drivers. This dedication to profitability is crucial for Progressive’s sustained long-term success.

The demand for insurance products remains stable, complementing economic growth. Additionally, Progressive’s pricing power allows it to respond to rising costs amid inflation, making it a robust blue-chip stock for long-term investment.

Exploring Berkshire Hathaway

Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) shares similarities with Progressive. Notably, Berkshire owns GEICO, purchased in 1996. GEICO ranks as the third-largest automotive insurer in the U.S. and has made noted improvements to its underwriting process.

Berkshire’s portfolio includes other insurance companies like National Indemnity, General Re, and Alleghany, which contributed $22.7 billion to its $47.4 billion operating earnings last year.

Beyond insurance, Berkshire holds a diverse array of businesses in sectors such as railroads, consumer goods, energy, and manufacturing. These companies also benefit from competitive pricing power and stable growth.

Berkshire’s $334 billion in available capital allows it to benefit from significant interest on safe U.S. Treasuries while its leadership, led by Warren Buffett, carefully seeks out promising investment opportunities. This diverse exposure makes Berkshire Hathaway a strong choice for long-term investors.

Tradeweb Markets: A Technological Pioneer

Tradeweb Markets (NASDAQ: TW) revolutionized U.S. Treasury trading in the 1990s with its innovative platform. Today, it is the preferred solution for major institutional investors trading Treasuries and other instruments like stocks, bonds, options, and ETFs.

The market for Treasuries and corporate bonds has grown significantly in recent years. Treasury securities, as critical components of government funding, attract active investment from banks and insurance companies.

Tradeweb has succeeded in expanding its market share. Since 2019, its share of the U.S. Treasury market has surged from 12.3% to 23.4%. During the same timeframe, its share of the U.S. investment-grade bond market doubled to 26.2%, while its portion of the high-yield bond market nearly tripled to 10%.

As market activity increases and global debt rises, Tradeweb is well-positioned for continued growth, making it another strong stock for investors to consider.

Take Advantage of Investment Opportunities

Do you sometimes feel you’ve missed opportunities to invest in high-performing stocks? If so, you might want to pay attention now.

Occasionally, our team of analysts identifies a “Double Down” Stock—a recommendation for companies they believe are poised for significant growth. If you fear you’ve missed your chance to invest, now might be your best opportunity before it’s too late. The results support this sentiment:

• Nvidia: A $1,000 investment when we doubled down in 2009 could be worth $315,521!*
• Apple: A $1,000 investment when we doubled down in 2008 could amount to $40,476!*
• Netflix: A $1,000 investment when we doubled down in 2004 would be approximately $495,070!*

Currently, we have “Double Down” alerts for three promising companies, presenting a unique investment opportunity.

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*Stock Advisor returns as of March 14, 2025.

Courtney Carlsen has positions in Progressive. The Motley Fool has positions in and recommends Berkshire Hathaway and Progressive. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.