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Invest Like a Billionaire and Buy These 5 Canadian Companies

In his recent Forbes column, Ken Fisher, the 28-year Forbes columnist, money manager, best-selling author, and billionaire discussed the Canadian market.  To summarize, he likes it!

His focus was specifically targeted towards the hedge funds that are betting against our market because of its exposure to commodities.  Though we are no doubt exposed, Fisher rightly notes, there’s more to Canada than just commodities.

He goes on to summarize his 5 best Canadian stock ideas:

Company Name

Current Price

Current Yield

Manulife Financial (TSX:MFC)

$16.00

3.25%

Thomson Reuters (TSX:TRI)

$33.81

3.95%

TransCanada Pipeline (TSX:TRP)

$46.25

3.98%

Royal Bank (TSX:RY)

$59.20

4.26%

Potash (TSX:POT)

$41.22

3.45%

Source:  Forbes.com

Fisher has suggested a collection of names that you could buy today, forget about, and realize in 10 years that you’re a significantly wealthier individual.

All 5 offer a solid yield of between 3-4% and all offer excellent long-term prospects.

The only name that perhaps warrants some degree of caution, in my opinion, is Thomson Reuters.  As Fisher notes in his article, the company has massive scale, and once it gets its offering through the door, so to speak, it becomes very difficult to live without the services that Thomson offers.  The issue however is competition.  The industry in which Thomson participates is highly competitive and this has hampered the company’s ability to grow organically and weighed on margins in recent years.  More importantly, this dynamic is unlikely to change.

Foolish Takeaway

The structure of our market as compiled by the S&P/TSX Composite Index is flawed due its significant exposure to resource stocks.  However, underlying the headline Index, there is a collection of great Canadian businesses, as Fisher points out.  For 5 more Canadian stock ideas that fit into the same mold as those offered up Fisher click here now to download our special FREE report5 Companies That Will Replace Your Canadian Index Fund”.

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Fool contributor Iain Butler is short $40 July 2013 put options on Potash and owns shares in Potash outright.  The Motley Fool has no position in any stocks mentioned at this time. 

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This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

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