All the Stocks I’m Buying in This Wild Market

The stock market has been very wild for the past year. That has given investors an exciting opportunity to pick up shares. Which stocks have I been buying?

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It’s no secret that this year has been a wild one for the stock market. Many outstanding companies have fallen more than 50% from their all-time highs. Normally, people tend to flock away from the stock market when that happens in fear of losing money. However, it’s important to realize that you only ever lose money when you sell a losing position. During times like these, it’s a great idea to look for strong companies that could thrive well after this period of economic uncertainty.

I’ve taken that approach and have been buying a lot of shares lately. I intend to continue this buying spree as long as it makes sense to do so. In this article, I’ll discuss two stocks I’ve bought in 2022 and one that I could buy in the near future.

I finally opened a position in this company

When shopping in a bear market, investors should focus on blue-chip companies. These are companies that lead their respective industries. Constellation Software (TSX:CSU) is one blue-chip stock that I’ve written about for years at the Motley Fool. This company acquires vertical market software (VMS) businesses. It then provides the resources necessary to transform those acquisitions into exceptional business units.

For nearly three decades, Constellation Software has had a lot of success. That has resulted in a stock price that has grown at a compound annual growth rate (CAGR) of about 30% since its initial public offering (IPO). This year is a rare one for Constellation Software, as its stock has lost more than 13% of its value. Despite that, I believe this company could continue to operate successfully over the coming years. Led by one of the greatest chief executive officers (CEOs) around, and with a winning playbook, Constellation Software should be an easy add to any investor’s portfolio.

A top financial institution

Brookfield Asset Management (TSX:BAM.A) is the second stock that I’ve added to my portfolio this year. Led by its long-time CEO Bruce Flatt, Brookfield Asset Management is one of the largest alternative asset management firms in the world. As of this writing, the company boasts a portfolio of more than US$750 billion of assets under management.

What interests me about this company is not how big it is but how fast it continues to grow. Over the past four years, Brookfield Asset Management’s portfolio has grown at a CAGR of about 24%. At that rate, its portfolio could surpass the US$1 trillion in a couple of years. Since its IPO, Brookfield Asset Management stock has outperformed the broader market by a wide margin. I believe it could continue to do so moving forward.

I’ll be adding to this position soon

I already have Bank of Nova Scotia (TSX:BNS) shares in my portfolio. However, it’s been a very long time since I’ve added to that position. I fully expect to take advantage of today’s low prices in the near future. Known as one of Canada’s largest banks, Bank of Nova Scotia sits third in terms of assets under management, revenue, and market cap.

It’s also known for being a great dividend stock, having paid investors a portion of its earnings in each of the past 189 years. Today, Bank of Nova Scotia offers investors a forward dividend yield of 5.97%. Believe it or not, but that’s actually quite lower than what it was offering just last month. This means that Bank of Nova Scotia stock has started to bounce back. With the stock on the rise again and a very attractive dividend on the table, it’s hard to stay away from this company at these prices.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Jed Lloren has positions in BANK OF NOVA SCOTIA, Brookfield Asset Management Inc. CL.A LV, and Constellation Software. The Motley Fool recommends BANK OF NOVA SCOTIA, Brookfield Asset Management, Brookfield Asset Management Inc. CL.A LV, and Constellation Software. The Motley Fool has a disclosure policy.

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