The only thing better than buying a quality stock is the opportunity to buy it at an outstanding price, and then letting it compound in value over the ultra-long term. With the S&P/ASX 200 (INDEXASX: XJO) having taken a dive in recent weeks, such an opportunity is now presenting itself on a number of Aussie companies which look like fantastic buys right now.
In terms of safety, growth and diversification, you can't look past Washington H. Soul Pattinson and Co. Ltd (ASX: SOL). Soul Patts is an investment conglomerate which has a very similar business approach to Warren Buffett's own Berkshire Hathaway Inc with substantial investments in companies like Brickworks Limited and TPG Telecom Ltd. Although its investment in coal miner New Hope Corporation Limited (ASX: NHC) is currently acting as a drag on earnings, the company believes in its long-term prospects, and so should investors.
Another stock which should be held onto for the ultra-long term is M2 Group Ltd (ASX: MTU). M2 Group is an excellent way for investors to gain exposure to Australia's booming telecommunications industry without potentially overpaying for the more well-known Telstra Corporation Ltd (ASX: TLS). Not only does it offer far greater growth potential, it also comes with a nice fully franked dividend yield which is currently sitting at 3.5% (or 5.1%, grossed-up). With brands like Dodo, Eftel, Primus and Commander in its arsenal, I expect M2 Group's customer base to continue expanding strongly while its earnings per share should also continue to accelerate.
Finally, Veda Group Ltd (ASX: VED) is also shaping up as an excellent long-term buy and hold prospect. The company, which enjoys a monopolistic position in Australia's data analytics field, jumped strongly following a robust full-year result, but has since retreated in line with the broader market to grant investors an incredible buying opportunity. This stock offers everything a value investor looks for, including a strong management team, an impeccable track record for growth as well as fantastic growth potential. At just $2.21 per share, this stock could deliver fantastic returns over the coming years or even decades.
Another stock primed for serious growth
Soul Patts, M2 Group and Veda Group are all well-established corporations and a buy today could reap you incredible returns over the coming decades. However, there is another company which could well be an even greater buy today (our top analysts certainly seem to think so)…
