Got $3,000? 3 Tech Stocks to Buy and Hold for the Long Term

Are you looking for stocks to invest in? Here are three tech stocks you can buy with $3,000!

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When investors look for stocks that have the potential to return many times on their investment, they often turn to the tech sector. This makes sense, mainly because tech companies tend to operate cutting-edge businesses. These companies are often pushing the boundaries of what we know, which presents opportunities for disruption and growth. If this sounds like something you’re interested in, then continue reading. Here are three top tech stocks to buy with $3,000!

One of the biggest companies in Canada

Shopify (TSX:SHOP) is the first stock that I think investors should consider buying and holding for the long term. This company has emerged, in recent years, as a major player in the global e-commerce market. There are very few Canadian companies that have managed to impact the world’s economy as much as Shopify, in my opinion. Because of that, this company deserves a spot in your portfolio.

It’s important to note that the global e-commerce space could continue to grow into the future. Consumers are becoming more and more accustomed to shopping online, and that could become even more so as today’s younger consumers eventually grow to become a larger proportion of the global consumer base. Shopify stock is up nearly 90% over the past year, indicating a solid recovery after a rough 2022.

A great alternative to a top stock

Constellation Software would be a stock that I think investors should buy today, but unfortunately, that stock exceeds the $3,000 limit imposed on this article. With that being said, there’s a far cheaper alternative that you could consider today. That would be Topicus (TSXV:TOI). Like Constellation Software, Topicus is an acquirer of vertical market software (VMS) businesses.

What differentiates the two companies is that Topicus focuses solely on the highly fragmented European tech industry. This provides Topicus with the opportunity to become an expert in VMS business acquisition within a specific region, which could help drive its growth in the future. Another crucial piece of information regarding Topicus is that Constellation Software is actually helping this company grow. Constellation’s founder and president, Mark Leonard, sits on Topicus’s board of directors.

I firmly believe an investment in this stock is like turning the clock back about a decade on Constellation Software. There’s a massive opportunity here.

Another option worth considering

Finally, investors looking for another tech stock to invest in could consider Enghouse Systems (TSX:ENGH). This stock could be another alternative to Constellation Software. Again, Enghouse Systems is an acquirer of tech businesses. Just like Constellation Software, Enghouse Systems publishes its acquisition criteria, making its intentions very clear to investors and potential acquisitions.

As you can see, Enghouse Systems requires businesses to be vertically focused in specific industries, have strong recurring revenues, and have several other key traits. I think the criteria it lays out theoretically weeds out a lot of lesser companies, leaving only the best ones to acquire. Enghouse Systems stock hasn’t done very well over the past year, but I think its stock could catch up to its business practices in the future.

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 Constellation Software, Shopify, and Topicus.com. The Motley Fool has positions in and recommends Enghouse Systems, Shopify, and Topicus.com. The Motley Fool recommends Constellation Software. The Motley Fool has a disclosure policy.

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