Three Exceptional Stocks to Invest $1,000 In and Hold Long-Term

Investing in the stock market is a smart move that, with the right discipline and patience, can lead to significant wealth and financial independence.

Experienced investors understand that building a well-diversified portfolio filled with high-quality stocks is essential. By distributing investments across strong companies with competitive advantages, you can take advantage of economic growth and benefit from the power of compounding.

Here are three outstanding stocks to consider as a starting point for your portfolio that can put you on a path to success.

Progressive

The insurance sector is often overlooked, as it can seem old-fashioned and unexciting. However, one company that has consistently innovated and gained a strong position in the industry is Progressive (PGR).

Progressive is currently the second-largest auto insurer in the U.S., following State Farm. For decades, it has provided excellent underwriting results in a highly competitive market, rewarding its investors handsomely. For example, a $10,000 investment in Progressive three decades ago would now be worth over $1.7 million!

The company has established a firm commitment to securing an underwriting profit of at least $4 for every $100 in premiums written. It has also embraced technology by utilizing telematics to price policies based on driving behavior rather than traditional demographics, offering personalized rates to attract safer, more responsible drivers.

This dedication to underwriting performance is crucial for Progressive's future success. Moreover, insurance will always be a necessary product, and the company is well-positioned for growth alongside the economy. During times of rising costs, Progressive can leverage its pricing power to adjust premiums, making it a fantastic stock for long-term, stable growth.

Berkshire Hathaway

Berkshire Hathaway (BRK.A) (BRK.B) shares some characteristics with Progressive. Among its many subsidiaries is GEICO, which it purchased in 1996. GEICO is the third-largest auto insurer in the U.S. and has significantly improved its underwriting in recent years to compete more effectively with Progressive.

Berkshire owns various other insurance companies, including National Indemnity, General Re, and Alleghany. Together, these insurance operations accounted for $22.7 billion of the company's $47.4 billion in operating earnings last year.

In addition to its insurance assets, Berkshire Hathaway has a vast portfolio that spans multiple industries, including railroads, energy, and consumer goods. This diversity provides a solid balance and growth potential, allowing the company to thrive even in challenging economic conditions. Berkshire's strong financial standing, coupled with its $334 billion in investable capital and a focus on safe U.S. Treasuries, positions it wonderfully for future investment opportunities.

Berkshire Hathaway offers a way to invest in a wide array of businesses that can grow as the economy does, providing you with resilience against economic ups and downs. With its strong financials and careful investment strategy, it is an excellent option for long-term investors.

Tradeweb Markets

Tradeweb Markets (TW) has modernized U.S. Treasury trading since the 1990s with its innovative trading platform. It has become the preferred platform for large institutional clients looking to trade Treasuries along with other financial instruments like stocks, bonds, options, and ETFs.

In recent years, the market for Treasuries and corporate bonds has surged. Treasury securities are highly traded, liquid instruments that are vital for banks, insurance companies, and professional investors. Additionally, as the national debt continues to grow, the issuance of Treasuries remains crucial for government funding.

Tradeweb has successfully built partnerships and increased its market share across various instruments. For instance, its share of the U.S. Treasury market has grown from 12.3% in 2019 to 23.4% today. Similarly, its share of the U.S. investment-grade bond market has doubled to 26.2%, while its share of the U.S. high-yield bond market has almost tripled to 10%.

As trading becomes more active globally, Tradeweb continues to expand its product offerings. With global debt on the rise, Tradeweb is well-positioned to capitalize on future growth, making it a valuable stock to consider.

Investing, Stocks, Finance