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Buying shares of growing companies and holding them through the inevitable bumps in the road is a great wealth-building strategy for retirement savers. The important thing to remember is that low valuations are a key component to rising stock prices, and some of the best companies are currently trading at attractive valuations.

If I were setting aside $1,000 right now, I would consider splitting it equally between them Amazon (AMZN 0.11%) and Brookfield Property Management (BAM -0.22%) this month. Let’s see what these companies have going for them that will bring in attractive returns.

Amazon

Amazon’s stock is currently down 45% from its all-time high. Declining revenue growth on the retail side has been the main reason the stock has fallen over the past year, but Amazon will re-accelerate its retail business at some point.

E-commerce has gradually increased its share of total retail spending over the past few decades, but it still accounts for less than 15% of the U.S. retail sector, leaving plenty of room for well-financed tech-oriented businesses like Amazon. Win more customers in the long run. eMarketer predicts that the e-commerce market will reach $7 trillion by 2025.

But Amazon is more than retail. It has growing revenue streams from cloud services (Amazon Web Services), advertising, and other high-margin non-retail services. These businesses pad the company’s profits and should increase business value significantly over the next decade.

Non-retail services now make up 54% of the business. Opportunities in advertising alone can make this percentage much higher. For example, ad services made up just 7% of Amazon’s top line in the fourth quarter but grew 23% year over year — one of the company’s fastest-growing segments. At $11.6 billion in quarterly revenue, ad services represents a multibillion-dollar opportunity for Amazon, where third-party brands want exposure to more than 200 million Prime members.

Investors should not hesitate to buy shares of this top stock when it is trading at a discount. On a price-to-sales basis, Amazon stock is at its cheapest level since early 2015. It should provide great returns from these lows.

AMZN PS Ratio Chart

AMZN PS ratio data by YCharts. PS Ratio = Price-Sales Ratio.

Brookfield Property Management

With $800 billion in assets under management, Brookfield is one of the largest owners of real assets. By real assets, we are talking about infrastructure, real estate, and renewable energy, among others.

A $1,000 investment in Brookfield stock 10 years ago would have been worth $6,000 at the stock’s peak a few years ago. In December, the company split Brookfield Corporationwhich owns 75% of the asset management business, with Brookfield Asset Management owning the balance.

Brookfield Asset Management is a stock investors should buy now, especially if they like dividends. Management has an exceptional track record of allocating capital at attractive rates of return, and the stock currently pays a generous 4% dividend yield.

The company owns some of the highest quality real estate there, including London’s Canary Wharf and the Atlantis Hotel in the Bahamas.

Brookfield Asset Management is also an excellent stock to take advantage of other opportunities accessible to individual investors. For example, the company recently agreed to fund half of a $30 billion chip manufacturing facility. Intel. Another was a recent deal Deutsche TelekomA deal to sell 51% of its tower business to a group of investors that includes Brookfield.

These opportunities will only increase over the next decade. The shift to alternative assets is a huge trillion-dollar megatrend. Management remains committed to its long-term target of 15% annual return to shareholders. That’s enough to double your money in five years, which is in line with stock returns over the past few decades.

Investors get upside from managing deals, but the stock’s high yield suggests the market is significantly undervaluing the business. Following the split in December, Brookfield Asset Management announced a quarterly dividend payment of $0.32 per share, supported by the company’s 2022 distributable earnings per share of $1.28. dividends.

On that note, the company just completed a strong year of fundraising, bringing in $93 billion in capital to invest, and management expects another great year. The recent dip is a perfect opportunity to buy shares before too much wealth growth and, potentially, a rising dividend sends the share price higher.

John Mackey, former CEO of Whole Foods Market, is a member of the board of directors of The Motley Fool, an Amazon subsidiary. John Ballard has posts on Amazon.com. The Motley Fool has positions on and recommends Amazon.com, Brookfield Asset Management, and Brookfield Corporation. The Motley Fool recommends Brookfield and Intel and recommends the following options: long January 2023 $57.50 calls on Intel and long January 2025 $45 calls on Intel. Motley Fool has a disclosure policy.

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