Stocks continue to trade weak nearly halfway through March. While that may cause some investors to be hesitant, this market provides an excellent opportunity to buy shares at deflated prices. Investors that are able to accumulate shares today could see their portfolios skyrocket once the market turns bullish. In this article, I’ll discuss three stocks that could carry your portfolio in the long run.
This stock is a well-oiled growth machine
Since its IPO, Constellation Software (TSX:CSU) has been an excellent stock to have in your portfolio. In fact, had you invested $10,000 into the stock at that time, that position would be worth more than $1 million today. Over that period, Constellation Software stock has grown at a CAGR of about 32%. That greatly outpaces both the TSX and S&P 500.
Since its founding, Constellation Software has been led by Mark Leonard. Under his guidance, the company has acquired hundreds of small- and medium-sized VMS businesses. In February 2021, Leonard stated that the company would finally be targeting large-sized VMS businesses for acquisition. It’s still much too early to determine whether this was a good decision. However, it could be a major catalyst for Constellation Software stock if the company can incorporate this new aspect into an already proven business model.
A reliable compounder for your portfolio
In a similar light, Brookfield Asset Management (TSX:BAM.A)(NYSE:BAM) has been another excellent company to hold in a stock portfolio. This stock has managed to grow at a very steady rate since its IPO in 1995. In fact, since that time, Brookfield stock has managed to grow at a CAGR of nearly 12.5%. In contrast, the TSX has only grown at a CAGR of about 5.6%. That means that Brookfield stock has been able to more than double the growth of the broader market on an annual basis for nearly three decades.
Brookfield Asset Management operates a portfolio with about $690 billion of assets under management. That makes it one of the largest alternative asset management firms in the world. Like Constellation Software, this company has been led by its long-time CEO, Bruce Flatt. First joining the company in 1990, Flatt became the CEO in 2002. As long as Flatt is at the helm, I would regard Brookfield stock as a must-have in any portfolio.
This can be a reliable stock during the roughest economic situations
Not all stocks need to outperform the market by two or three times in order to be good holds over the long run. In addition, utility companies may not have the most attractive businesses, but they can still be solid stocks to hold in your portfolio. Fortis (TSX:FTS)(NYSE:FTS) stock has been a solid performer for shareholders since its IPO. Since becoming a public company in 1995, Fortis stock has grown at a CAGR of nearly 9%.
That return grows even larger once dividends are accounted for. Speaking of which, Fortis is one of the most reliable dividend companies in Canada. Listed as a Canadian Dividend Aristocrat, Fortis has grown its dividend in each of the past 47 years. That reliable dividend is reassurance to investors during periods of economic uncertainty.
