If you’re serious about investing and creating sustainable wealth for the long term, then you should know that stock portfolios aren’t built in a day. They’ll require a lot of time and commitment if you’re hoping to achieve financial independence. However, the great thing is that there’s so much free information out there, including services like The Motley Fool. In this article, I’ll discuss three great stocks that you should consider buying today. I think holding these stocks for five years could help you achieve your goals.
My favourite stock on the TSX
When it comes to Canadian stocks, very few are able to keep up with the returns generated by Constellation Software (TSX:CSU). In my opinion, this is one of the best companies you may have never heard of. Constellation Software is an acquirer of vertical market software (VMS) businesses. For most of its history, Constellation Software focused on acquiring small- and medium-sized VMS businesses. However, since 2021, the company has shifted its focus and instituted a new division dedicated to large VMS business acquisitions.
I think that Constellation Software’s willingness to adapt has allowed it to continue growing at such a fast rate. Since its initial public offering in 2006, this stock has gained more than 17,600%! Normally, we’d see stocks start to slow down in terms of growth after a gain of that magnitude simply because of the law of large numbers. However, Constellation Software continues to grow without issue. Over the past year, this stock has gained nearly 54%. I believe that kind of growth could continue for the next few years.
Another great TSX stock for your portfolio
Similar to Constellation Software, I think investors should consider buying shares of Brookfield Corporation (TSX:BN). This is another company that makes its business out of acquiring strong, cash-flowing assets. It differs from Constellation Software, however, in that it focuses on a variety of sectors. This includes insurance, renewable utilities, real estate, private equity, and infrastructure. In 2023, Brookfield deployed about $55 billion to complete its acquisitions.
A steady compounder, Brookfield stock has gained about 91% over the past five years. In 2023 alone, this stock managed to gain over 23%. In my opinion, those are very outstanding numbers, especially if you consider how tough of an economy it’s needed to operate in over the past year and a half. Brookfield is led by Bruce Flatt, its long-time chief executive officer. As long as Flatt continues to lead this company, I feel very confident allocating a large proportion of my portfolio toward this stock.
If you’re looking for a bit more growth
Finally, I’m a firm believer that Shopify (TSX:SHOP) continues to be a stock that investors should hold in their portfolios. This is a global leader in the growing e-commerce market. It’s estimated that more than one million merchants rely on Shopify to power their online stores today. As consumers continue to shift towards online shopping and become more comfortable with that concept, then Shopify’s impact around the world should continue to grow.
Shopify stock has taken shareholders for a ride over the past two years. Prior to growth stocks crashing in 2022, Shopify was one of the highest-flying stocks on the TSX. In fact, at one point, it was even Canada’s largest company by market cap. Today, Shopify stock sits more than 50% lower than its all-time high. However, shareholders should be very optimistic. The stock managed to gain nearly 109% in 2023.
