The best way to beat the market over the long-term is to invest for the long-term. Frequently trading shares will just cost you a lot in brokerage. However, when you give some of the most promising business ideas the time to compound their earnings, you give yourself the best chance of creating outsized returns and outperformance. I try to buy shares when they’re trading at good value, so my below ideas are reaching multi-month lows. Here are three ideas for long-term growth: InvoCare Limited (ASX: IVC) InvoCare is the largest funeral provider in Australia. It is currently undergoing significant…
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The best way to beat the market over the long-term is to invest for the long-term. Frequently trading shares will just cost you a lot in brokerage.
However, when you give some of the most promising business ideas the time to compound their earnings, you give yourself the best chance of creating outsized returns and outperformance.
I try to buy shares when they’re trading at good value, so my below ideas are reaching multi-month lows.
Here are three ideas for long-term growth:
InvoCare Limited (ASX: IVC)
InvoCare is the largest funeral provider in Australia. It is currently undergoing significant investment into its locations so that it offers a fresh look and so that it can cater to the modern needs of families.
The company has grown exceptionally well over the past 15 years, but investors are currently negative about the business because its earnings are expected to slightly fall due to the refurbishment expenditure.
Death volumes are expected to grow by 1.4% per annum between 2016 to 2025 and then increase by 2.2% per annum from 2025 to 2050. This will likely be a nice-and-steady tailwind for InvoCare.
Its shares may drop lower after it reports in August, but today’s price could be good for long-term growth.
It’s currently trading at 23x FY18’s estimated earnings.
National Veterinary Care Ltd (ASX: NVL)
National Veterinary Care is an aggregator of other veterinary clinics. The industry is very fragmented, which means there’s plenty of acquisition opportunities for management to take advantage of.
The company recently announced more acquisitions, which will bring the total number of clinics up to 67 if the latest three are finalised.
The company easily has scope to double the number of clinics it owns, which should mean it has an acquisition-led growth runway for a few more years.
It’s currently trading at around 23x FY18’s estimated earnings.
Ramsay Health Care Limited (ASX: RHC)
Ramsay is Australia’s largest private hospital operator, it also has major operations in France and the UK.
There are several avenues of growth that Ramsay should be able to achieve. It is benefiting from the ageing population. It is investing significant sums of money into expanding its current portfolio of hospitals and building new ones. It is launching a joint venture global supply chain to procure items for a cheaper cost. It plans to expand into North America or China in the coming years.
Ramsay has already grown a lot over the past 10 years, but the above initiatives could help push earnings even higher over the next decade.
It’s currently trading at 19x FY19’s estimated earnings.
All three of the above shares strike me as quality choices that could outperform the market by some distance over the next decade. At the current share prices I’d say National Vet Care would be my pick because of how much ‘annualised’ revenue it has acquired recently.
Other top ideas to compound your wealth are these exciting share ideas.
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Motley Fool contributor Tristan Harrison owns shares of InvoCare Limited, NATVETCARE FPO, and Ramsay Health Care Limited. The Motley Fool Australia owns shares of NATVETCARE FPO. The Motley Fool Australia has recommended Ramsay Health Care Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.