Growth stocks are everywhere. Finding stocks that can grow for several decades straight, however, is fairly difficult. In order to achieve sustained growth, these companies need to target long-term opportunities that can persist well into an uncertain future.
Fortunately, two high-quality stocks are doing just that. Plus, they’re managed by one of the best-performing investors of the last 30 years.
This guy knows how to find great stocks and stick with them. If you’re looking for stocks that can grow like a weed until 2040 or longer, you’ve come to the right place.
Meet the master
Fairfax Financial Holdings Ltd (TSX:FFH) is an incredible stock. Since 1985, shares have risen in value by more than 17% per year. That’s a record only matched by the likes of Warren Buffett and Berkshire Hathaway Inc.
Who should we thank for this incredible performance? One man: Prem Watsa. Born in India, Watsa later immigrated to Canada, where he founded Fairfax Financial. Over the next few decades, he proved himself to be the greatest investor in Canadian history.
Watsa is now worth more than $1 billion, but at the age of 68, he’s showing no signs of stopping. In fact, he’s created two new investment vehicles over the last few years that allow investors to get in on the ground floor of two exciting growth opportunities: India and Africa.
Bet on home
Fairfax India Holdings Corp. (TSX:FIH.U) was founded in early 2015 to focus on hyper-growth opportunities in India.
Since then, shares are up around 30% versus an increase of just 9% for the S&P/TSX Composite Index. While that’s a solid return, the real money will be made over the next decade and beyond.
India has some unique characteristics that buck the global trend. While GDP growth in Europe and North America is flatlining, the Indian economy is still growing by more than 6% per year.
India also has 1.3 billion people, and over the next several years is expected to become the most populous country in the world.
Indian GDP per capita is just US$2,000. The U.S. and Canada fall between US$40,000 and US$60,000. As the country becomes wealthier, there’s an opportunity for the economy to double, triple, or even quadruple in size.
“We are well-positioned to invest large sums of money in India,” Watsa said earlier this year. “We think India will be the single best place to put money in the future.” Fairfax India is your best way to bet on this sleeping giant.
We’re not done
Fairfax Africa Holdings Corp. (TSX:FAH.U) is similar to Fairfax Africa, except its focus is the African continent. This is an incredibly difficult place to invest. If you were to buy an ETF covering the region, you’d only be able to buy the largest publicly-traded companies, of which there are fairly few. By investing in Fairfax Africa, you gain two valuable advantages.
First, you can access both private and public deals. Fairfax Africa can invest in essentially any asset on the continent, including private equity and debt. These are assets that you couldn’t invest in anywhere else.
Second, you can tap into Watsa’s famed network of entrepreneurs and investors. Watsa has a team of people on the ground actively searching for suitable investments. That’s an incredible advantage and directly benefits Fairfax Africa investors.
With Fairfax Africa and Fairfax India, you gain exposure to the fastest-growing areas of the world, plus access to one of the greatest investing minds in history. Now that’s a great deal.
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The Motley Fool owns shares of Berkshire Hathaway (B shares) and has the following options: short January 2021 $200 puts on Berkshire Hathaway (B shares) and long January 2021 $200 calls on Berkshire Hathaway (B shares). Fairfax Financial Holdings is a recommendation of Stock Advisor Canada.
Fool contributor Ryan Vanzo has no position in any stocks mentioned.