When it comes to investing, a focus on the long term tends to prevail.
After all, the world's greatest investor, Warren Buffet, got rich slowly and there is no comparable person who became that rich in a short space of time.
With that in mind, here are three stocks that have excellent long term potential and, as a result, could be worth buying right now.
Telstra Corporation
Telstra Corporation Ltd (ASX: TLS) is going through something of a transitional period at the moment. It remains a major mobile phone player in Australia, but is focusing on growth outside of these shores in the long run.
Indeed, Telstra is aiming to generate at least a third of its revenue from Asia within the next five years. While this may seem like an ambitious target, there is vast potential for telecom companies such as Telstra across Asia, with a growing middle class meaning that demand for mobile phones and other communication devices should remain strong over the long run.
With shares in Telstra yielding a fully franked 5.2%, they offer an excellent yield in the meantime, too. As a result, Telstra appears to be the kind of stock you can buy and hold well into your retirement.
Transurban Group
Transurban Group (ASX: TCL) also appears to be a superb long-term play. That's because toll roads and tunnels are generally very consistent and reliable with regard to their revenue visibility, which should mean that Transurban is able to deliver impressive growth over the long run.
However, consistency and stability shouldn't be confused with a slow growth profile. In fact, Transurban is expected to increase its bottom line at a rapid rate over the next two years, with it forecast to grow at an annualised rate of 26.9% over the period.
As a result of this, and a PEG ratio of 1.48, Transurban appears to offer good value for money in addition to upbeat growth prospects. And, with a beta of 0.85, it should provide less volatility than the wider market moving forward, too.
Commonwealth Bank of Australia
Over the last ten years, the share price of Commonwealth Bank of Australia (ASX: CBA) has risen by a staggering 156%. That's four times the ASX's 39% rise over the same time period and there could be more growth to come from the bank.
That's because CBA has recently delivered a record first quarter result, with profit being up around 14%. Although this pace may not continue over the next couple of years, CBA is still expected to increase its earnings in-line with the wider index at 5.9% per annum.
Furthermore, there is the potential for positive surprises on the earnings front due to the likelihood of there being low interest rates, which should benefit the Aussie property market and CBA via more loans to property buyers (and fewer bad loans, too). CBA also has a low beta of 0.78, thereby offering a lower volatility experience for investors moving forward.
