It can be hard to think about putting money into investing at a time like this. We now have the highest interest rate in place by the Bank of Canada since April 2008 at 3.75%. Yet we continue to watch the markets like hawks in hopes that soon there will be a market bottom that we can edge in on.
This is not the way a long-term investor should behave. Instead, investors need to rethink their strategies and instead focus on long-term investing; this is an opportunity for enormous long-term growth.
By doing this, you’re setting up yourself for success. It means simply choosing companies you know will come out the other side of this environment relatively unscathed. If you’ve been putting cash aside, hoping for a scenario that leads you to believe now is the time to buy, here’s your sign.
Constellation Software
It might not seem like the best time to get into tech stocks, but, honestly, in the case of Constellation Software (TSX: CSU), it couldn’t be better. This stock has outperformed over the last few decades on a strong strategy that will see it climb higher than ever before.
This is because Constellation has used its tried-and-true method of growing through acquisitions for years. It buys up necessary software, reinvigorates it, and then sends it back out to perform better than ever before. These programs include library software and subway software — things you never think about but are still necessary.
All this means that Constellation stock will continue to find cheap companies to buy up and expand for years to come. Its management has a proven track record of doing so. Now, with shares down 17.3% year to date, it couldn’t be a better time to jump in on the stock and hold it forever.
Want a sneak peak of what you’re getting? Constellation stock has risen 1,922% in the last decade for a compound annual growth rate (CAGR) of 35%!
WSP Global
Another stellar choice right now is WSP Global (TSX: WSP), and again for many of the same reasons as Constellation. No, it’s not a tech stock, but it offers the same stability as an infrastructure stock. It has a global portfolio, designing, advising, and managing infrastructure for private and public clients. It includes everything from railways and tunnels to highways and bridges.
Given its essential service, WSP stock continues to see revenue come in and rise, even during a downturn. Inflation will certainly come into play here, as will interest rates, but the stock has a proven track record.
Shares of WSP stock are down 10.3% year to date, giving you a great opportunity to jump in. And again, over the last decade, it’s done incredibly well — up 922% during that time. That’s a CAGR of 26.15%!
Bottom line
If you’re looking for long-term holds with proven track records of performance coupled with a growth strategy to be admired, then WSP stock and Constellation stocks are the choices for you. Each has a long-term plan that’s simple and effective. They’re essential services that will remain essential for decades. So, now is certainly the time to consider them while they’re down.
