If there’s one thing that both Peter Lynch and Warren Buffett can agree on, it’s that investing in infrastructure stocks is a smart move. Lynch, who is considered to be one of the greatest stock pickers of all time, has said that “infrastructure is probably the safest place you can put your money.” And Buffett, who is one of the most successful investors ever, has made big bets on several infrastructure companies over the years. With that being said, here are infrastructure stocks that are worth considering for your portfolio.
Peter Lynch and Warren Buffett’s investment advice
If you’re looking for a smart investment to buy and hold, look no further than infrastructure stocks. That’s the advice from two of the most successful investors in history, Peter Lynch and Warren Buffett.
Lynch is the legendary former manager of the Fidelity Magellan Fund, while Buffett is the chairman and CEO of Berkshire Hathaway. Both have made a fortune by investing in companies that own essential assets such as railways, pipelines and utilities.
Why are infrastructure stocks such a good investment? There are a few reasons.
First, these companies own assets that are essential for economic activity. No matter what happens in the stock market or the economy, people will always need to use roads, bridges and other infrastructure. That means there’s always demand for these services.
Second, infrastructure stocks tend to be less volatile than other types of stocks. They’re not immune to market fluctuations, but their earnings are more predictable. That makes them a more stable investment during periods of market turbulence.
Third, many infrastructure companies have long-term contracts with government agencies or other customers. This provides them with a steady stream of revenue, even when economic conditions are tough.
fourth, Infrastructure stocks offer high dividend yields . That’s because these companies often generate large amounts of cash that they can return to shareholders through dividends . For example , at present , the average yield on infrastructure stocks is around 4%. That’s more than double the yield on government bonds .
infrastructure stocks to buy and hold
If you’re looking for stocks to buy and hold for the long term, look no further than infrastructure stocks. These companies own and operate the physical infrastructure that supports our economy, including roads, bridges, railroads, airports, and power plants.
And with aging infrastructure in need of repair and replacement, there’s plenty of room for growth in this sector. In fact, the American Society of Civil Engineers estimates that the United States needs to invest $4.6 trillion by 2025 to maintain its current infrastructure.
That’s why investing legends like Peter Lynch and Warren Buffett have been bullish on infrastructure stocks for years. And with President Biden proposing a $2 trillion investment in infrastructure over the next four years, now is a great time to consider these companies as investments.
Here are three infrastructure stocks that are smart buys and hold for the long term:
1- Brookfield Infrastructure Partners (NYSE: BIP)
Brookfield Infrastructure Partners is a leading global provider of essential physical infrastructure assets and services. The company owns and operates a diversified portfolio of critical infrastructure assets across North and South America, Europe, Asia Pacific, Africa, and the Middle East. This includes toll roads, ports, pipelines, utilities, data centers, telecommunications towers, railways, water systems, warehouses, and timberlands.
With more than 100 million people relying on its assets every day around the world Brookfield Infrastructure is an essential business with a long-term growth runway. And
Why these stocks are a smart investment
If you’re looking for a smart investment, you can’t go wrong with infrastructure stocks. That’s because infrastructure stocks are a solid long-term investment that will continue to grow in value over time.
Here’s why these stocks are a smart investment:
1. Infrastructure stocks are a safe bet.
Investing in infrastructure stocks is a safe bet because these companies are essential to the functioning of the economy. They provide essential services that people and businesses need, so they are less likely to be impacted by economic downturns.
2. Infrastructure stocks offer stability and growth potential.
Investing in infrastructure stocks offers both stability and growth potential. These companies tend to have strong balance sheets and generate steady cash flow, which provides them with the financial resources to invest in growth initiatives. As a result, investors can expect both dividends and capital appreciation over the long term.
3. Infrastructure stocks are defensive investments . . .
Defensive investments are those that tend to hold up well during periods of market turmoil, and infrastructure stocks fit this bill perfectly. That’s because these companies provide essential services that people need regardless of what’s happening in the economy. So, if the stock market takes a dip, your investment in an infrastructure company is likely to weather the storm better than most other investments.
How to get started investing in infrastructure stocks
If you’re looking to invest in infrastructure stocks, there are a few things you should keep in mind. First, be aware of the difference between growth and value stocks. Growth stocks are those that are expected to outperform the market, while value stocks are those that trade at a lower price than their intrinsic value.
When it comes to investing in infrastructure stocks, it’s important to look for companies with a strong history of dividend growth. These companies tend to be more stable and have a lower risk of defaulting on their debt.
Another thing to keep in mind is that infrastructure stocks can be volatile. They tend to do well when the economy is growing, but can suffer when there’s a recession. As such, it’s important to have a diversified portfolio that includes other asset classes so you can weather any market conditions.