Stock market investing has proven itself to be one of the best ways to generate significant wealth. Investors who can identify and invest in high-quality assets with long-term growth potential can achieve substantial wealth growth by simply remaining invested. Of course, recessions and bear markets can shake up even the most resilient investors.
Investors become hesitant about investing more money in the stock market. Moreover, many of them begin unloading shares left, right, and centre. Ironically, it is during downturns that investors can find most of the wealth-generating deals on the stock market.
As of this writing, the S&P/TSX Composite Index is down by 10.20% from its 52-week high. With volatility still in full swing, I will discuss two forever buy-and-hold TSX stocks in the market that are trading for a bargain right now.
Constellation Software
Investing in technology stocks has not been a major trend over the last year because of the industry-wide meltdown causing high-growth tech stocks to suffer. While most Canadian tech stocks are high-growth and high-risk assets, Constellation Software (TSX: CSU) is a $44.27 billion market capitalization exception.
Headquartered in Toronto, Constellation Software is a diversified software company founded by a former venture capitalist. The company relies on acquiring smaller vertical market software businesses, funding their growth, and, in turn, fueling its own growth.
2021 saw Constellation Software announce that it will start acquiring larger vertical market software businesses to continue achieving extraordinary growth. Despite its positive track record over the years, Constellation Software stock has declined this year. As of this writing, it trades for $2,088.99 per share, down by 10.31% year to date.
The decline is uncharacteristic, and its announcement to target larger companies to bring under its banner can improve performance on the stock market in the coming weeks. It might be the right time to buy and hold its shares today.
Brookfield Asset Management
Brookfield Asset Management (TSX:BAM.A) is a comfortable long-term investment for many Canadian investors. Headquartered in Toronto, Brookfield Asset Management is one of the world’s largest alternative investment management companies. It boasts an enormous US$725 billion in assets under management and is fast approaching the US$1 trillion mark in the coming years.
Being well capitalized can be an important quality to consider when searching for assets with the potential to deliver long-term wealth growth, and Brookfield Asset Management is well covered in that regard.
To make things better, the company offers its investors one-ticket exposure to several industries, ranging from real estate to renewable energy, private equity markets, insurance, and infrastructure.
The macroeconomic issues worldwide might seem troublesome, but they will only offer the company more high-quality acquisition opportunities to fuel its growth. As of this writing, it trades for $58.88 per share. Down by 25.50% from its 52-week high, it is too attractively priced to ignore.
Foolish takeaway
Investing money in a high-quality stock trading for discounted valuations can grow your wealth through capital gains over several years or even decades.
If you pick your cards right, investing in these long-term growth stocks can turn you into a much wealthier individual down the line. Constellation Software stock and Brookfield Asset Management stock can be excellent additions to your portfolio for this purpose.
