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Adopting a long-term strategy when investing in the stock market on a large scale is an excellent way to generate great wealth and enjoy success as an investor. Identifying high-quality publicly traded companies, buying shares and holding them forever can help you get the most out of your initial investment.
buy high quality products, Stocks are undervalued With reasonable valuations, it can be a better long-term investment strategy than buying stocks of medium-sized companies in Big discounts. A business with sustainable performance and the ability to generate significant long-term returns can be an excellent stock for you to buy and hold over the long term.
Commodities tend to perform well during volatile market environments as investors flee risk and prefer assets that they can use as a hedge against uncertainty. Publicly traded companies with large commodity trading operations are using the power of higher commodity prices to improve profit margins and generate healthier cash flows.
Gold is a safe haven asset that investors flock to in droves during harsh economic environments. Identifying a high-quality gold-producing company with strong fundamentals, a broad economic moat, strong financial performance and good management can help you find a buy-and-hold investment that you can keep in your portfolio forever.
Today, I will discuss one of these stocks that you can consider adding to your investment portfolio.
If you want to invest in the shares of a gold-producing company, Barrick Gold (TSX: ABX) (NYSE: GOLD) could be one of the best assets you can consider. Barrick Gold is a mining company with a market capitalization of $53.70 billion with 16 operating sites in 13 countries around the world.
Specializing in gold and copper production, the company is Canada’s leading gold mining company, producing more than 71 million ounces of proven and probable reserves.
The company’s financial performance is highly dependent on gold prices. While this means that its cash flow is affected by fluctuations in spot gold prices, Barrick Gold has strong fundamentals. The company has achieved or exceeded the market consensus for its operating and financial results for the last 12 consecutive fiscal quarters.
Barrick Gold stock is trading at $28.94 per share at the time of writing, and boasts a dividend yield of 1.76%. Its share prices are up 21.55% year-to-date and continues to deliver an stellar financial performance on the back of higher gold prices.
Barrick Gold is a strong company. Being one of the largest producers of gold in Canada, it is a good long-term investment as it can perform well through its wide economic moat, despite challenging market environments. Understanding some aspects of a company’s valuation can help you understand whether its stock is currently worth investing in.
Barrick Gold’s stock has a market capitalization of $53.70 billion, and an enterprise value of $53.94 billion. The company’s EBITDA ratio is 7.57 – which is similar to most of its peers in the gold mining industry. These metrics indicate that it can be a fair value stock.
Although its current share price is fairly underrated, long-term investors may want to consider adding it to their portfolios to enjoy big profit A decade or two years ago.