For investors looking for long-term growth at reasonable valuations, the following two companies offer strong risk-adjusted return potential.
1) Enterprise Products Partners (NYSE: EPD)
Enterprise Products Partners LP (EPD) is one of North America’s leading midstream energy companies, operating an extensive pipeline network that transports oil, natural gas, refined products, and petrochemicals. It also plays a significant role in the expanding U.S. liquefied natural gas (LNG) market.
While occasional incidents occur, pipelines remain the safest and most cost-efficient method for transporting energy products compared to alternatives like freight rail. Enterprise’s business model is largely insulated from direct commodity price fluctuations, as it primarily earns revenue from transportation fees rather than selling oil or gas. However, prolonged low energy prices can reduce production volumes, leading to lower transport demand.
A key advantage of Enterprise is its diversified revenue streams, with exposure beyond oil and gas to refined products and petrochemicals, providing greater stability and long-term growth potential.
2) MicroStrategy (NASDAQ: MSTR)
Founded in 1989, MicroStrategy (MSTR) is a business intelligence and analytics company that has outlasted many of its industry peers over the past three decades. While many small and mid-sized tech firms have been acquired or faded away, MicroStrategy has remained one of the few independent players in the sector.
The company is widely known for its strategic Bitcoin holdings, a move that has helped it outperform major stock indices—and even Bitcoin itself—since adopting this approach. Instead of making non-strategic acquisitions, MicroStrategy reinvests retained earnings into Bitcoin, building a substantial corporate treasury while maintaining a disciplined business strategy.
With a resilient business model, strong market position, and unique Bitcoin strategy, MicroStrategy presents a compelling long-term investment opportunity.
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