3 Stocks That Will Make You Richer by 2030

Important Points:

1. A falling stock market is an excellent opportunity for long-term investors to put their money to work.
2. Profitable, tried-and-true businesses tend to appreciate in value over time.

Investing in mundane businesses is a tried-and-true Wall Street money-making strategy.

In 2022, Wall Street and investors will be reminded that stocks can fall just as easily as they can rise. Since their respective all-time highs, the 126-year-old Dow Jones Industrial Average, widely followed S&P 500, and growth-driven Nasdaq Composite have fallen 17 percent, 22 percent, and 33 percent, respectively. The S&P 500 and Nasdaq Composite are now firmly in a bear market.

Although large declines in the broader market can be frightening and emotionally taxing for investors, history shows that corrections and bear markets can be fantastic buying opportunities for patient investors. 

After all, every significant decline in the major US stock indexes has been followed by a bull market.

The crucial question is not "Should you invest during a stock market crash?" but rather "What stocks should I buy?" Boring businesses may be the best solution.

Boring companies are a beautiful thing on Wall Street, despite the fact that the word "boring" has negative connotations. 

A boring business is usually very profitable on a consistent basis and time-tested. In other words, boring stocks are exactly the type of companies that we would expect to gain value over time.

Here are three boring but beautiful stocks to buy now that will make you richer by 2030.

1. Microsoft:

Microsoft is the first boring stock that has the potential to make long-term investors richer by the turn of the decade (MSFT -2.44 percent ).

When most people think of Microsoft, they probably think of its Windows operating system or its various Office programmes, such as Word or Excel. 

These legacy segments are still cash cows, despite not growing at the same rate as they did two decades ago. Indeed, according to GlobalStats, Windows has a commanding 75.5 percent share of global desktop operating systems as of May 2022.

Microsoft is the first boring stock that has the potential to make long-term investors richer by the turn of the decade (MSFT -2.44 percent ).

When most people think of Microsoft, they probably think of its Windows operating system or its various Office programmes, such as Word or Excel. 

These legacy segments are still cash cows, despite not growing at the same rate as they did two decades ago. Indeed, according to GlobalStats, Windows has a commanding 75.5 percent share of global desktop operating systems as of May 2022.

Want another reason to have faith in Microsoft in the long run? Standard & Poor's (S&P), a subsidiary of S&P Global, has given Microsoft its highest credit rating (AAA). This is one notch higher than S&P's credit rating for the federal government of the United States (AA). 

The implication is that S&P has more faith in Microsoft servicing and repaying its debts than it does in the US government.

Microsoft is also flush with cash. It had $104.7 billion in cash, cash equivalents, and short-term investments at the end of March, and had $87.1 billion in operating cash flow over the previous year. 

Microsoft's incredible financial flexibility enables it to pay dividends, repurchase stock, and make acquisitions to expand the reach of its many verticals.

2. NextEra Energy:

NextEra Energy, an electric-utility stock, is a second boring but beautiful business to buy as the stock market falls (NEE -3.96 percent ).

NextEra's beauty is that it provides a basic necessity service. Homeowners and renters are unlikely to stop using electricity, regardless of how well or poorly the stock market performs.

Electricity demand is highly predictable, allowing companies like NextEra to invest in new infrastructure projects and pay out dividends without jeopardising profitability. Wall Street craves predictability, and the vast majority of utility stocks provide it.

However, NextEra is more than just another name in the electric-utility industry; it is the largest, and for good reason. No other utility generates more capacity from solar or wind energy than NextEra. 

With the company pledging up to $55 billion in new infrastructure projects (primarily renewable energy projects) between 2020 and 2022, it is likely to remain the green energy leader in the United States for the foreseeable future.

Renewable energy projects can be costly, but the investment has been well worth it. For more than a decade, green energy solutions have significantly reduced NextEra's electricity-generation costs and propelled the company to a compound annual growth rate in the high single digits. Electric-utility stocks typically grow at a low-single-digit rate.

Another reason to be optimistic about NextEra Energy stock in the long run is the company's regulated utility operations. By "regulated," I mean its traditionally run operations that do not use renewable energy. 

Though the company can't raise rates whenever it wants because it needs the approval of state public-utility commissions, being regulated means it's not exposed to potentially volatile wholesale electricity pricing.

NextEra has generated a positive total return for its shareholders in 19 of the last 20 years, including dividends.

3. Berkshire Hathaway:

Berkshire Hathaway (BRK.A -3.28 percent) is the third boring stock to buy that could make you richer by 2030. (BRK.B -3.32 percent ).

Though Berkshire Hathaway isn't as well-known as Microsoft, the company's billionaire CEO is: Warren Buffett. Buffett, also known as the Oracle of Omaha, has led his company's Class A shares (BRK.A) to an annualised return of 20.1 percent since taking over as CEO in 1965.

In other words, over the last 57 years, shareholders' money has doubled about every 3.6 years. If this annualised return continues, investors' initial investments could more than quadruple by the end of 2030.

While there are numerous reasons for Buffett's long-term success, a few stand out above the rest. Berkshire Hathaway's nearly $315 billion investment portfolio, for example, is heavily skewed toward cyclical stocks.

Cyclical companies thrive when the US and global economies are expanding and struggle when the economies are contracting. The problem is that recessions typically last a couple of quarters, whereas economic expansions can last for years. Warren Buffett is playing a numbers game that has Berkshire Hathaway perfectly positioned to benefit from the US economy's natural expansion.

Berkshire Hathaway's exposure to dividend stocks is another reason for its success. Buffett's company is on track to earn more than $6 billion in passive income over the next 12 months, including preferred stock dividends. Dividend stocks are not only profitable and time-tested, but they also have a track record of outperforming stocks that do not pay a dividend over long periods of time. Warren Buffett is once again playing a simple numbers game that positions Berkshire Hathaway for success.

The cherry on top of this investment is that Warren Buffett and his right-hand man Charlie Munger adore repurchasing their own company's stock. This dynamic duo has authorized the repurchase of $61.1 billion in Berkshire Hathaway Class A and Class B shares since mid-2018. Buying back stock in profitable and steadily growing companies can increase earnings per share and make a company's stock appear more fundamentally appealing.