3 actions that I hold forever – The Fool Motley

When markets become turbulent – which is inevitably the case – it is good to have stocks you can rely on to cope with tough times and continue to grow in value over time. More importantly, an action you want to keep forever will give you the confidence to add more stock to your credit when everyone sells at a lower price.

I like to mix everything in my portfolio: buy stocks that should generate returns in the next few years, but invest most of my funds in "permanent" shares whose value will continue to grow over the decades . Brookfield Asset Management (NYSE: BAM), Activision Blizzard (NASDAQ: ATVI), and PayPal Holdings (NASDAQ: PYPL) are three of my favorite actions that I plan to keep forever.

Owning Brookfield makes me feel like a leading real estate investor

Brookfield Asset Management is one of the largest investors and real estate operators in the world – office buildings, utilities, pipelines, renewable energy, retail centers and other business services. The company manages $ 365 billion in assets, which has doubled in the last five years and could double again over the next five years.

The modus operandi of the company is to attract money from institutional investors and use it to buy real assets, such as those mentioned above, at reasonable prices. Management seeks to generate a return of 12% to 15% over time on its investments. Over the last 20 years, it has significantly exceeded its commitments with an annualized return of 17% as of February 13. An investment of $ 1,000 in the stock held 15 years ago would be worth $ 8,325 today, including dividends.

One of the reasons why Brookfield Asset Management is such a solid stock forever is that management targets long-term, high-quality acquisitions, which means that assets generate stable cash flows and provide a vital service to society that will likely enable these businesses to continue for decades.

Another reason is that institutional investors are looking for higher yields than bonds and have transferred billions of dollars to real asset funds in recent decades. Brookfield management believes that institutional investors are still underutilized in real assets and will allocate up to $ 40 trillion to these hedge funds by 2030. This is a drag on Brookfield's growth. and provides management with consistent cash flow to stay active in the acquisition of valuable assets. good business to generate returns for shareholders.

A gambling empire rich in money

One way to look for good titles is to think of places where young people spend more time and money. In recent decades, the percentage of Americans who spend time playing games has increased by about 50%, according to the Bureau of Labor Statistics. This has resulted in an increase in money spent on game content; spending rose 66% between 2010 and 2017 to reach $ 29.1 billion.

On the popular Twitch streaming game site, Activision Blizzard usually has more games in the list of 10 trends than any other game maker. These games are usually Overwatch, World of Warcraft, and home. The company had 345 million active users per month in the first quarter, spread across all its games, which also includes the successful franchise on mobile. candy Crush.

Activision recently hit a sweet patch in the player's commitment. Shares are down, but this gives investors the opportunity to own one of the largest and most profitable gaming companies at a discount. Over the past year, Activision Blizzard generated free cash flow of $ 1.59 billion and recently increased its annual dividend for the ninth consecutive year.

10.5 billion digital and growing payment transactions

The move to digital payments has fueled the rising share prices of several companies operating in the sector, which is beating the market, but PayPal is my favorite mobile payment stock. It has a large and growing clientele of 277 million people. The total value of all payments made through the various PayPal services totaled $ 608 billion last year, and the total volume of payments continues to grow by about 25% per year, excluding currency fluctuations.

Since the separation of eBay In 2015, the PayPal stock rose 202%, but this is only the beginning of what should be a very rewarding growth story in the long run. Customer engagement continues to grow, which is an added benefit for the growth of business transactions. The increase in PayPal's commitment is due in particular to the growing number of 22 million merchants who offer PayPal at PayPal. The company continues to sign new agreements, particularly with fast-growing e-commerce platforms, such as Facebookit's Instagram, mercadolibre, and Uber Technologies.

PayPal has only touched his potential. In addition to new partnerships, the company is just starting to monetize the explosive growth of Venmo, a peer-to-peer mobile payment application that is growing in popularity.