Investing should be looked at as a marathon and not a sprint. If you want to create sustainable wealth for yourself, then it’s important that you’re able to identify companies that could continue to find success over the long term. One way to do that is by looking for companies that have a long history of success and continue to lead their respective industries. By holding stocks of those companies for the long term, investors could see their portfolios grow significantly. Here, I’ll discuss three TSX stocks that are great long-term picks!
This asset management firm should be in your portfolio
Brookfield Asset Management (TSX:BAM.A)(NYSE: BAM) is a stock that I’ve wanted to buy for years. For many different reasons, it remains on the outside of my portfolio. However, I believe that it’s only a matter of time until it finally becomes my newest position. With that said, this company is one of the largest alternative asset management firms in the world. It has about US$725 billion of assets under management. Through its subsidiaries, Brookfield has exposure to the infrastructure, insurance, real estate, renewable utility, and private equity markets.
Brookfield checks off many of the boxes that investors should be looking for in growth stocks. First, it has a very fast growth rate. Over the past four years, its portfolio has grown at a compound annual growth rate (CAGR) of 26%. In addition, its chief executive officer (CEO) has held the position for two decades and has established himself as one of his generation’s greatest executives. Brookfield stock currently trades 18% lower than its all-time highs. Considering buying shares before this stock jumps back to new heights.
Buy this amazing tech stock
Constellation Software (TSX: CSU) is another stock that investors should consider holding over the long term. This company was established nearly three decades ago. Since then, it has acquired hundreds of vertical market software (VMS) businesses. Following a very disciplined acquisition criteria, Constellation Software has established itself as a leader within its space. In fact, it has been so successful that the company has needed to become aware of competitors trying to copy its strategy.
For most of its history, Constellation Software has focused on acquiring small- and medium-sized businesses. This focus has allowed the company to perfect its strategy and experience massive success. Since its IPO, Constellation Software stock has grown at a CAGR of more than 30%. Last year, the company announced that it would finally start targeting large VMS businesses. It’s unclear how that will play out in the short term; however, it could have major implications for its stock in the long run.
“Boring” companies can be outstanding stocks to hold
Investors tend to get attracted to the exciting new stocks that enter the market. Whether it be the next tech innovation or a major development in the healthcare space. However, as you can see in this article, companies with less-exciting businesses, or, dare I say, boring businesses, can be excellent stocks to hold in your portfolio. With that said, I really think investors should consider buying shares of Canadian National Railway (TSX: CNR)(NYSE: CNI).
This company operates the largest railway network in Canada. It runs nearly 33,000 km of track, which spans from British Columbia to Nova Scotia. Canadian National’s ability to operate from coast to coast has made it one of the most recognizable companies in the country. Amazingly, this stock has been an excellent performer over the past year, gaining 20%. For comparison, the TSX has lost nearly 4% of its value over the same period.
