Investing in stocks implies you’re investing in their underlying businesses. Here are some proven businesses that have and will continue to beat the market in the long run.
Investing $5,000 in these growth stocks should make you a fortune over the next 10 years!
Make a fortune with this stable staples stock
Long-term investors can make a fortune with Alimentation Couche-Tard (TSX:ATD.B). The company acquired its way to success by consolidating the convenience store industry, which is still very fragmented!
Actually, Couche-Tard did more than just make deals and buy convenience stores. It also aimed to learn from and realize synergies from each acquisition.
Couche-Tard shareholders were very excited to hear about the company’s intentions to make yet another big acquisition, Caltex Australia, for A$8.8 billion, which “would have marked the largest acquisition in the country this year” according to Bloomberg.
Couche-Tard still thinks Caltex is a strategic fit for the company to span into Asia Pacific. However, after six months of due diligence, we arrive at a global pandemic situation that has impacted businesses everywhere, including convenience store chains.
As a result, Couche-Tard has decided to put a pause on the acquisition until the global outlook looks better. Notably, the substantial time and money that the company put into the due diligence process will not go to waste, as in the future, it will for sure revisit the acquisition.
Make a fortune with this growth stock
Brookfield Asset Management (TSX:BAM.A)(NYSE:BAM) stock is another ticket to riches. It is a leading alternative asset manager that invests in high-quality assets across more than 30 countries globally.
Additionally, these assets have a long life and are often cash cows that generate consistent cash flow in normal economic conditions.
The growth stock generates fee-related earnings and performance fees from the funds it manages. As well, it earns cash distributions from its investments in renewable energy and infrastructure assets, real estate, private equity, and credit.
BAM earns fee-related revenues from more than half of the US$540 billion of assets it manages. The company never has trouble raising capital. Investors, including institutional and private investors, keep coming back for more of what BAM offers — that is, long-term targeted returns of 12% or greater in top-notch real assets.
For example, in 2019, BAM raised more than US$27 billion of capital across its businesses. As Brookfield Asset Management manages more and more assets, it earns greater and greater fees. BAM is also heavily invested in its listed partnerships. So, rest assured that you are investing alongside owners that have the same interests!
BAM stock has fallen meaningfully by about 30% from its high. This year is a wonderful opportunity to accumulate the growth stock for wealth creation over decades.
The Foolish bottom line
COVID-19 will negatively impact the bottom lines of both Couche-Tard and BAM this year. However, investing $5,000 and holding the stocks for 10 years or longer should fetch you a fine fortune! Over 10 years, the stocks can roughly triple investors’ money, barring a market-wide downturn!
At about $39 per share, Couche-Tard is a reasonable value. I see the stock potentially trading in a sideways range for some time.
In any case, this year is a good time to accumulate shares in these wonderful companies, especially on meaningful dips.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.
Fool contributor Kay Ng owns shares of ALIMENTATION COUCHE-TARD INC and Brookfield Asset Management. The Motley Fool owns shares of and recommends Brookfield Asset Management. The Motley Fool recommends ALIMENTATION COUCHE-TARD INC and BROOKFIELD ASSET MANAGEMENT INC. CL.A LV.