One of the most relaxing ways to get rich is to buy high quality, growth stocks at a reasonable price. The beauty of this approach is that once you correctly identify and purchase a growth stock you should be able to hold on to it for many years – ideally decades.
Sit back and let your investments work for you
This has a couple of advantages. Firstly, as a company with growth opportunities the business should hopefully compound your money at a solid rate – compounding is the key to wealth accumulation. Secondly, because you will own the stock for many years you don't have to worry about when to sell it and what to buy next – it's not only more relaxing but numerous studies have found that over activity can actually lead to lower returns!
Yes, patience is a virtue when it comes to long-term investing in growth stocks
To help get you on your way to a comfortable retirement, here are three companies with solid businesses and the potential to grow for decades to come.
- Brickworks Limited (ASX: BKW) is currently enjoying the tailwind of an upswing in housing construction, however equally important is the group's through-the-cycle outlook which includes its substantial indirect holding in growth stocks such as TPG Telecom Ltd (ASX: TPM).
- SKYCITY Entertainment Group Limited-Ord (ASX: SKC) owns and operates a number of appealing monopoly casino assets both in Australia and New Zealand. Redevelopment and expansion such as the new five-star 300-room hotel planned for Auckland is creating growth opportunities for the group.
- Shine Corporation Ltd (ASX: SHJ) is a relatively new addition to the ASX but is a well established legal services provider with a long history. Like its peer Slater & Gordon Limited (ASX: SGH) there is significant scope for consolidation within the industry.
Don't wait
Above all else, the number one factor required to succeed in a quest to retire rich is to actually start saving! The above three stocks could all make solid additions to a long-term growth portfolio and all three are on my watchlist.