The most important task for long-term investor is to find stocks that you can hold for years and decades. Despite a lot of research and evidence to the contrary there are still people who believe that you can built a fortune by daytrading stocks and currencies. Just look at the Forbes list of billionaires and try to find even one person who built his fortune via speculation…
When you are trying to find the best growth stocks first of all you should examine the structure of ownership. If senior management and board of directors hold meaningful amount of stock then their interest is aligned with other shareholders such as you are. Also you should look for durable business-model, ability of the company to adapt and constantly reinvent itself, be very competitive and ethical.
List of the Best Long-Term Stocks
Below you can find a list of stocks which made their long-term investors very wealthy during past decades.
|Company Name||Ticker||Country||Average Annual Return|
|Alimentation Couche-Tard Inc||ATD.B||Canada||24.5%|
|Arch Capital Group||ACGL||USA||11%|
|Brookfield Asset Management||BAM||Canada||14%|
|Equity Lifestyle Properties||ELS||USA||11.5%|
|Jewett-Cameron Trading Company||JCTCF||USA||13%|
|LVMH Moët Hennessy||MC||France||12.5%|
|Monster Beverage Corp||MNST||USA||33%|
|Post Holdings Inc||POST||USA||15.5%|
|Texas Pacific Land Trust||TPL||USA||16%|
Markel Corporation is an American insurance company which invests its insurance float in stocks, bonds and other businesses to grow its shareholders wealth.
Average annual return of Markel stock (MKL) since 1987 – 16.5%
Markel Corporation Stock Price
Franco-Nevada Corporation is a Canadian company which invests in royalty streams. It buys participations in future production of mining companies (gold, silver, copper, oil, gas, etc.). This is very effective scheme for Franco-Nevada shareholders – without any risk of financial distress in case of any prolonged period of low commodity prices they retain significant upside in case of boom on commodity markets.
Average annual return of Franco-Nevada stock (FNV) since 2008 – 19.5%
Franco-Nevada Corporation Stock Price
Post Holdings is a company which specializes on distribution and production of consumer goods. Post Holdings was founded in 1895 – more than 125 years ago! Since 2012 company was divested from a bigger one and started trading alone. Management strategy is based on maximising shareholder’s wealth via serial acquisitions.
Average annual return of Post Holdings (POST) stock since 2012 – 15.5%
Post Holdings Stock Price
FRP Holdings is a mid-size conglomerate which was founded in 1986 as a result of divestment of real-estate and transport business from the company called Vulcan Materials. Nowadays FRP Holdings develops and manages vast real-estate and land holdings. Company also keeps big cash reserve which it uses to buy opportunistically new businesses during market dislocations.
Average annual return of FRP Holdings (FRPH) stock since 1987 – 9.5%
FRP Holdings Stock Price
TransDigm Group is a company with specialization in production and distribution of components for aviation industry. TransDigm is a serial acquirer.
Average annual return of TransDigm Group (TDG) stock since 2007 – 24%
TransDigm Group Stock Price
Teledyne Technologies is an American conglomerate which consists of more than 100 companies in aviation industry, digital image niche and others. Teledyne is also focused on acquiring its small competitors.
Average annual return of Teledyne Technologies (TDY) stock since 1999 – 18%
Teledyne Technologies Stock Price
Equity Lifestyle Properties is an American real-estate trust founded in 1992 by famous entrepreneur Sam Zell. Its operations are based in USA.
Average annual return of Equity Lifestyle Properties (ELS) stock since 1993 – 11.5%
Equity Lifestyle Properties Stock Price
Henry Schein is an American industrial company focused on dental niche.
Average annual return of Henry Schein (HSIC) stock since 1996 – 11%
Henry Schein Stock Price
Danaher Corporation is an American conglomerate founded by Rales brothers. Danaher grows via acquisitions and aggresive implementation of lean manufacturing (Kaizen) in acquired companies.
Average annual return of Danaher (DHR) stock since 1978 – 26%
Danaher Stock Price
Sherwin-Williams is an American paint manufacturing giant founded more than 150 years ago.
Average annual return of Sherwin-Williams (SHW) stock since 1982 – 17% (plus dividends)
Sherwin-Williams Stock Price
Arch Capital Group – is an American insurance company.
Average annual return of Arch Capital Group (ACGL) stock since 1996 – 11%
Arch Capital Group Stock Price
FMC Corporation – throughout its history (nearly 140 years) this company changed its main business line many times – pesticide production, weapons, oil industry components, lithium mining, etc. What has not changed is its management focus on shareholder returns. By the way, FMC was one of the favorite stock of famous investor Philip Fisher.
Average annual return of FMC Corporation (FMC) stock since 1987 – 11% (plus dividends)
FMC Corporation Stock Price
Brookfield Asset Management is a Canadian company which manages assets in the fields of real-estate, energy, infrastructure and others. Combined value of assets under management is nearly $700 billion.
Average annual return of Brookfield Asset Management (BAM) stock since 2004 – 14% (plus dividends)
Brookfield Asset Management Stock Price
Texas Pacific Land Trust is a unique company for many reasons. In 1888 after bankruptcy of Texas and Pacific Railway this trust was created. It received land holdings from the railroad – 3.5 million acres. Former railroad creditors received trust certificates which began trading on stock exchange in 1927.
After more than 100 years from its inception Trust sold 75% of its land holdings and still remains one of the biggest land owners in Texas. Texas Pacific Land Trust gets income from land sales, royalties from oil and gas production, water sales (mainly to frackers). All its income Trust spends to pay dividends and aggresively buy back its own shares (certificates). That’s why it has become one of the best stock for long-term investors.
Average annual return of Texas Pacific Land Trust (TPL) stock since 1983 – 16% (plus dividends)
Texas Pacific Land Trust Stock Price
NVR Inc. is an American company which finances and builds homes.
Average annual return of NVR Inc. (NVR) stock since 1987 – 16%
NVR, Inc. Stock Price
LVMH Moët Hennessy is a French holding company which owns a lot of luxury brands – Louis Vuitton, Christian Dior, Tiffany, Dom Pérignon, Hublot, TAG Heuer, Hennessy and many others. Biggest shareholder and founder of LVMH is the richest man in France – Bernard Arnault.
Average annual return of LVMH Moët Hennesy (MC) stock since 1990 – 12.5% (plus dividends)
Adobe Inc is a famous US-based software company which is known for its products – Photoshop, PDF documents and many others.
Average annual return of Adobe Inc (ADBE) stock since 1987 – 23%
Adobe Inc Stock Price
Monster Beverage Corp is an American producer of energy drinks (Monster Energy, Burn and others).
Average annual return of Monster Beverage Corp (MNST) stock since 2005 – 33%
Monster Beverage Corp Stock Price
Exor NV is a holding company of Agnelli family (founder of FIAT) which was formed in its current form in 2009. Exor owns shares in Stellantis (former Fiat Chrysler and Peugeot), Ferrari, The Economist, PartnerRe, Juventus Football Club and other companies. Agnelli family owns more than half the shares of Exor with market value of ~8 billion euro.
Average annual return of EXOR NV (EXO) stock since 2009 – 19.8%
Alimentation Couche-Tard Inc is a Canadian operator of convenience stores.
Average annual return of Alimentation Couche-Tard Inc (ATD.B) stock since 1997 – 24.5%
Constellation Software is a Canadian software developer. Business strategy of Constellation is based on acquiring promising startups. Since its inception in 1995 company acquired more than 250 companies.
Average annual return of Constellation Software (CSU) stock since 2008 – 39% (plus dividends)
Geberit AG is a famous Swiss company with specialization in manufacturing sanitary parts and other related products. It was founded in 1874.
Average annual return of GEBERIT AG (GEBN) stock since 2000 – 12.5% (plus dividends)
Robertet Group is a French company which manufactures fragrances and flavors since 1850.
Average annual return of Robertet Group (RBT) since 1989 – 14% (plus dividends)
Jungfraubahn Holding is a Swiss company which manages several excursion railways and other sports facilities in the Jungfrau Region.
Average annual return of Jungfraubahn Holding (JFN) stock since 1997 – 8% (plus dividends)
Emmi AG is a Swiss manufacturer of dairy products. It was founded in 1907.
Average annual return of Emmi AG (EMMN) stock since 2005 – 14% (plus dividends)
Charter Communications is a second-largest cable operator in US. Company is controlled by famous businessman John Malone.
Average annual return of Charter Communications (CHTR) stock since 2010 – 29%
Charter Communications Stock Price
Heico is an American manufaturer in aerospace and electronics industries. Heico growth strategy is based on acquiring competitors. It have bought more than 70 companies since 1995.
Average annual return of Heico (HEI) stock since 1987 – 18% (plus dividends)
Heico Stock Price
What You Should Not Forget When You Are Buying Growth Stocks For Long-Term
- Don’t use leverage and leave some funds for a rainy day.
- You need “steel” nerves to invest in stockmarket. Stock prices can be very volatile despite long-term trend of growing on average (10% plus or minus for USA stock markets).
- Shun “too good to be true” stories and tips – it is way more safer to build wealth investing in stocks slowly than trying to find “the next big thing”.
- Don’t trust people who promote their courses and books on how to become wealthy trading stocks. People with real knowledge don’t do this – they are busy with more respectful pursuits.
- Be patient and diversify your investments.