Finding high-quality growth stocks to buy for the long haul is one of the best ways to build serious wealth over time. The market cycles up and down, economies slow or speed up, but the truly great growth companies keep expanding revenue, earnings, and cash flow year after year.
These high-quality growth stocks are businesses with strong competitive advantages, exposure to powerful secular trends, and are run by management teams that reinvest earnings consistently to compound value.
So, when you buy these kinds of stocks for the long term, the more patient you can be and the longer you can own them, the more compounding works hard in your favour.
In fact, for many high-quality growth stocks, revenue grows at double digits, margins continue to expand, and share price appreciation can deliver massive total returns over decades.
And right now, with markets still digesting higher rates and economic uncertainty, many high-quality growth stocks to buy for the long haul have pulled back or been trading sideways.
So, if you’re looking for a monster growth stock to buy right now, here’s why Brookfield Corporation (TSX:BN) and GFL Environmental (TSX:GFL) are two of the best picks on the TSX.
Source: Getty Images
Brookfield is one of the best long-term growth stocks to buy now
When it comes to finding high-quality stocks that offer years of growth potential, diversified operations and a management team that employs a long-term growth strategy, Brookfield is easily one of the best choices.
As a global alternative asset manager with a huge portfolio of real assets spread across multiple sectors and geographies, Brookfield has massive exposure to reliable industries with long-term growth potential.
For example, Brookfield has investments in industries such as infrastructure, like utilities, transport, pipelines, and data centres, renewable power, real estate, including offices, logistics, and residential, private equity in operating businesses, and a growing insurance operation that generates low-cost float for reinvestment.
So, what makes Brookfield one of the best growth stocks to buy right now is the powerful combination of diversification and secular tailwinds.
The business has the potential to benefit from multiple tailwinds such as the renewable energy transition, digitalization, AI-driven data centre demand, population growth, and urbanization.
Furthermore, its geographic diversification is essential, too. Having assets across North America, Europe, Asia-Pacific, South America, and more is key because when one region slows, others can often help to offset the slowdown.
So, if you’re looking for a top Canadian growth stock to buy now and hold for years, there’s no question Brookfield is among the best of the best.
GFL Environmental is positioned for explosive growth in an essential industry
In addition to Brookfield, GFL Environmental is another high-quality growth stock to consider adding to your buy list.
GFL is one of Canada’s leading waste management and environmental services companies. That means it generates revenue by providing collection, recycling, treatment, and disposal services for residential, commercial, industrial, and municipal customers across North America.
That may not seem like the most exciting business. However, it’s an excellent industry to invest in for the long haul because the business is essential. Waste doesn’t stop, no matter what the economy is doing.
In addition to how reliable its business is, though, the reason GFL is one of the best growth stocks to buy and hold for the long haul is its growth strategy. For years, the company has grown rapidly by acquisition, helping to consolidate a fragmented industry and significantly improving its scale.
Those acquisitions have led GFL to now operate one of the largest networks in Canada and a growing U.S. footprint. Furthermore, as it continues to scale the busines it drives better margins through route optimization, higher utilization of facilities, and stronger pricing power.
Furthermore, like Brookfield, GFL has a ton of growth potential over the coming years from powerful tailwinds such as population growth, urbanization, and increasing environmental regulations.
So, if you’ve got cash you’re looking to put to work, there’s no question that GFL is one of the best TSX growth stocks to buy now and hold for years or even decades to come.
