As an active investor, I take pleasure in adding to my positions each month. For those that are unfamiliar with my writing, I am a growth investor. This means that I invest in companies with the potential to multiply my initial investment several times over the next decade. In this article, I discuss three stocks I’ve bought in September 2021.
An ETF that all young or growth-minded investors should hold
This first entry is actually an exchange traded fund (ETF). However, it’s one that deserves attention. The Evolve FANGMA Index ETF (TSX: TECH) is the first ETF available anywhere, that holds just the six American Big Tech companies. Those companies include Facebook, Amazon, Netflix, Alphabet (Google), Microsoft, and Apple. I believe that every young and/or growth-minded investor should hold this ETF in their portfolio.
Although the companies in this ETF are among the biggest in the world, they all still offer the potential to see massive growth over the coming years. Think of how hard it is to live a regular day of your life without relying on the services or products of one of these companies. In addition, buying this ETF would be an easy choice because of its accessibility. Not everyone will be able to afford shares of each of those companies individually. However, this ETF provides the opportunity to buy each for just a fraction of the price.
It’s never “too late” to buy an excellent company
I first started following Topicus.com (TSXV: TOI) shortly after its Initial Public Offering (IPO) in February. Since then, the stock has climbed about 117%. For many investors, that may make them feel like they’ve missed an excellent opportunity. However, it’s important to stay focused on the long-term. Topicus is an excellent company influenced by a legend in its industry. As long as Constellation Software maintains its mentorship role with the company, this will be an easy buy.
For those who are unfamiliar, Topicus is an acquirer of vertical market software companies. It differentiates itself from Constellation by focusing on a highly fragmented European technology industry. Since 2007, Constellation Software has produced an average annual return of nearly 40%. If Topicus is able to generate returns of even half that over the next decade, shareholders will be in for massive returns. Topicus may have already grown a lot over the past seven months, but I believe this is just the beginning.
Boring can be good
Warren Buffett is often quoted as saying that the best investments are often boring. Look at Berkshire Hathaway. Many would say that its business isn’t very exciting. However, the company has done an excellent job in producing returns over the long term. Likewise, Trisura (TSX: TSU) doesn’t have a very exciting business by any stretch of the imagination. However, it has a very interesting opportunity ahead.
Like Topicus, Trisura was spun out of a much larger company. Prior to its IPO, Trisura was a subsidiary of Brookfield Asset Management. Although it now operates as its own entity, Brookfield is still a large part of the company. A large proportion of Trisura’s shares are held by a corporation made up of directors from Brookfield. This is a smaller and thus more volatile company, but it has already shown it has tons of potential. Trisura ranked in third place in this year’s edition of the TSX30, with a 523% gain over the past three years.
