With literally thousands of companies to choose from, how should investors decide which stocks to add to their portfolio? I like to look at companies that have a clear path to success, operate in an important, emerging industry, or have excellent management. I’ve found that by investing in companies with those qualities, you can optimize your returns. In this article, I’ll discuss three stocks I’d like to buy next.
A very exciting opportunity
Topicus.com (TSXV:TOI) was once a subsidiary of Constellation Software. Much like the former parent company, Topicus aims to acquire small- and medium-sized vertical market software companies but focuses on the European market. Even though Topicus now operates as a separate entity, Constellation Software still has a large influence on the company. Most of the members on Topicus’s board of directors are executives from Constellation Software.
The fact that Constellation Software has such a great influence on Topicus’s day-to-day operations bodes well for the newer company. It has the opportunity to learn from Constellation’s vast wealth of experience, while avoiding some of the more crucial mistakes that its former parent company made. Topicus has been thought to be at the same stage as Constellation Software back in 2010. One glance at Constellation’s stock chart suggests that Topicus shareholders could be in for major gains.
Did you get in on this IPO?
Last September, Nuvei (TSX:NVEI) closed the largest tech IPO in Canadian history. That means that it managed to raise more money in its first day of trading than companies like Shopify and Lightspeed. Since then, Nuvei hasn’t slowed down a bit. It has continued to expand and is now present in more than 200 global markets and accepts over 470 payment methods, 150 currencies, and 40 cryptocurrencies.
Over the past year, Nuvei’s financial strength has been incredible. Year over year, Nuvei customers have seen a 132% increase in total volume transacted. This has reflected in an 80% year-over-year increase in Nuvei’s revenue. Nuvei stock has nearly gained 125% since its IPO less than one year ago. Yet it trades at a valuation of only about $15 billion. In order to reach the same size as its peers, Nuvei stock will have to grow five to 10 times from here. This is an outstanding company with a very attractive opportunity.
This company announced a very exciting partnership
Brookfield Asset Management (TSX:BAM.A)(NYSE:BAM) is one of the largest alternative asset management firms in the world. The company focuses on real assets, which are defined as assets that have intrinsic value. Examples include real estate, infrastructure, and utilities. Brookfield Asset Management is also known for its CEO, Bruce Flatt, who has often been referred to as Canada’s Warren Buffett.
On Friday, Brookfield Asset Management announced that it had entered a partnership with Tesla to develop the first Tesla Solar neighbourhood and the most sustainable residential community in the United States. This is an exciting piece of information for investors, as it shows that Brookfield Asset Management is fully committed to innovation. Continued developments such as this will surely push the stock forward in the coming years.