As many famous investors such as Warren Buffett have proven, the best way to grow your money is by investing for the long term. And if you’re investing for the long term, then you’re inevitably going to have to deal with stock market crashes.
Generally, market pullbacks will cause investors to panic about their investments losing value. This is a natural reaction. However, soon you start to realize, especially if you are prepared beforehand, that stock market crashes offer some of the best opportunities to buy stocks at a significant discount.
You might be watching stocks today, waiting for a pullback to gain some exposure. Similarly, you could decide to add to positions in your existing stocks.
So, the next time there is a stock market crash, here are three stocks I own that I would be happy to buy at a significant discount.
1. Brookfield Infrastructure Partners is my top stock to buy in a market crash
One of the top stocks I own is one I plan to hold forever and will certainly be buying in a market crash. Brookfield Infrastructure Partners (TSX:BIP.UN)(NYSE:BIP) is not just a great investment to make for the long term. It’s also a very unique investment.
There aren’t many stocks that offer investors exposure to high-quality assets all over the world and which are run by an excellent management team.
Brookfield owns high-quality and defensive assets all over the world in the utilities, midstream, transportation, and data infrastructure industries.
So, in addition to gaining exposure to telecom towers in India, investors will also own pipeline assets in Canada and railway assets in South America.
This incredible and unique portfolio of highly robust infrastructure assets is, in my view, one of the best stocks to own as a core holding.
And not only is it extremely defensive, but with Brookfield managing it, it also offers investors a tonne of growth.
The fund aims to grow by up to 15% annually and increase its distributions to investors by up to 9% annually. So, if you’re looking for a high-quality stock to buy in a market crash, Brookfield Infrastructure is one of my top recommendations.
BCE is Canada’s largest telecom stock, an industry that’s key to our economy. Plus, in addition to the fact that the internet and telecommunications are essential services, it’s also an industry that will continue to grow as technology improves.
From telephones came the internet, then came smartphones and data. Today, we have 5G technology rolling out, and you can be sure that down the road, there will continue to be new innovation that drives more growth in the telecommunication space.
Plus, BCE is integrated well and owns tonnes of high-quality, long-life assets, making it a major cash cow. The company is consistently increasing its dividend, as its operations allow it to earn tonnes of cash flow.
Today that dividend yields upwards of 5.4%. Therefore, it’s another excellent stock to buy at a discount when there’s a market crash.
3. InterRent REIT
Lastly, another highly impressive stock that I would certainly want to buy in a market crash while it’s cheap is InterRent REIT (TSX:IIP.UN).
InterRent is a high-quality residential real estate stock that has consistently proven it can grow investors’ capital rapidly.
Over the last 10 years, InterRent, which owns apartments in Ontario and Quebec and only recently branched out in the Vancouver market, has earned investors a total return of 625% or a compounded annual growth rate of almost 22%.
The reason that investors continue to see such strong returns on their investment is due to the impressive strategy that InterRent has. The fund is consistently growing its portfolio and investing in renovations to upgrade its properties. This allows it to continue raising rents and increasing the income for shareholders alongside the value of its portfolio.
So, as the fund continues to grow investors’ capital at impressive rates and just announced its 10th consecutive annual dividend increase, it’s one of the best ways to gain exposure to residential real estate and a top stock I’d buy in a market crash.