Investing in the stock market could allow you to build generational wealth. However, in order to do that, investors must buy the right stocks and then hold them for a very long time. By doing that, investors allow their investments to grow and snowball over time.
In this article, I’ll discuss two hot stocks that investors should consider buying today and holding until they retire. In my opinion, these stocks are best held by individuals with longer investment horizons.
This blue-chip stock is an incredible winner
For those that are unfamiliar, blue-chip stocks are those that are well established and lead their respective industries. While it’s true that most blue-chip stocks are well past their growth stage, this isn’t the case for all of them. In fact, some blue-chip stocks are capable of beating the broader market by a very wide margin. In Canada, the S&P/TSX 60 is a great place to look for strong blue-chip stocks to hold in your portfolio.
If I could only choose one blue-chip stock to hold in my portfolio with growth in mind, it’d be Constellation Software (TSX:CSU). If you haven’t heard of this company before, don’t feel bad. Generally, investors tend to focus on consumer-facing companies, because the potential penetration of those companies could be massive. However, if you’ve been sleeping on Constellation Software, know that you’ve also been missing out on massive growth since its initial public offering (IPO).
Since listing on the stock market, Constellation Software stock has gained about 14,800%. I know some investors may be thinking, “If it’s grown that much already, does it mean its best days are behind it?” I don’t think so. In fact, Constellation Software has shown no signs of slowing down. In fact, over the past year, this stock has gained 44%. To put that into perspective, the TSX has gained about 7% over the same period.
One of my favourite TSX stocks
In my opinion, Shopify (TSX:SHOP) is another hot stock that investors should consider buying and holding until they retire. This company is a global leader in the massive e-commerce industry. As that industry continues to grow, I believe Shopify will continue to grow alongside it, rewarding shareholders along the way.
Since its IPO, Shopify has constantly made headlines. Sometimes for good reasons, sometimes bad. However, through all of the noise, it’s clear that Shopify’s business is very stable and continues to grow. During its most recent earnings presentation, Shopify reported that its second-quarter revenue came in at US$1.7 billion. That represents a 31% year-over-year increase. In addition, the company continues to hold a 10% share of the massive U.S. e-commerce market.
Looking at Shopify stock’s performance so far this year, investors should be very happy. The stock has gained about 43%. That outpaces the TSX by a long shot. If you’re interested in adding growth to your portfolio, consider Shopify stock. This company could continue growing well after you retire.