3 Stocks for Patient Investors

You’re unlikely to find instant gratification with these names. But if you’re willing to wait, the odds are on your side.

| More on:
The Motley Fool
You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn more

Patience is something that every investor needs, but unfortunately, few possess. We all want instant gratification, those quick profits when one of our holdings beats earnings estimates or gets acquired. But when investors specifically seek out those situations, it’s easy to get burned in the long run.

The stocks listed below are a little different. The near term is full of uncertainty, and could end up being very volatile. And these companies are certainly not takeover targets. But if you’re willing to hold on to them for many years, the odds are much more likely to be in your favour.

1. Cameco

Uranium miner Cameco (TSX: CCO)(NYSE: CCJ) is a company that has tested investors’ patience for over three years now, ever since the Fukashima disaster in Japan. The result has been slumping demand and prices for uranium, as well as a slumping share price for the company.

It looks like this will not turn around any time soon. In a recent interview, Cameco CEO Tim Gitzel said that the next 18 months will be very difficult for the uranium market. Delays in restarting Japan’s nuclear reactors are resulting in a supply glut that will take some time to work through.

But longer term, with uranium trading at about $30 per pound, Cameco’s competitors will have trouble competing, leading to an eventual reduction in supply and increase in pricing – as long as you’re willing to wait.

Imperial Oil

Investors’ patience has also been tested by the energy industry, especially with all the delays in Keystone XL’s approval. But this has resulted in some great long term opportunities.

One of them is Imperial Oil (TSX: IMO)(NYSE: IMO), mainly because it has some excellent assets. For example, its Cold Lake assets are one of the lowest cost operations in the entire industry, helping make Imperial more able to withstand the ups and downs of energy prices. And its Kearl oil sands project is one of the most environmentally friendly operations in the industry, which of course helps shield the company from regulatory risk and public backlash.

The company also has very long life assets – for example Kearl has a project life of about 40 years. This is a great benefit to investors, especially the ones willing to hold on for just as long.

Brookfield Asset Management

Alternative asset manager Brookfield Asset Management (TSX: BAM.A)(NYSE: BAM) has one of the best investment track records in Canada. And this has shown up in the company’s stock price, which has returned over 15% per year for the last 15 years.

The problem with Brookfield is that its share price has done especially well recently, tripling over the last five years. The shares are currently trading right at their 52-week high, and can hardly be called a bargain. But if you’re willing to hold the shares for another 15 years, you just need Brookfield’s team to perform as it has done in the past. Again, this requires patience, but that’s a necessary trait of successful investors anyways.

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.

Fool contributor Benjamin Sinclair holds no positions in any of the stocks mentioned in this article.

More on Investing

Hands holding trophy cup on sky background

3 Growth Stocks That Could Be Huge Winners in the Next Decade and Beyond

Here are three top TSX growth stocks that may be worth a look, given the significant valuation declines these stocks…

Read more »

edit Back view of hugging couple standing with real estate agent in front of house for sale
Dividend Stocks

Why Real Estate Stocks Are a No-Brainer Addition to Your Portfolio

Real estate stocks, especially REITs, offer some distinct advantages over other types of stocks, making them must-have additions to most…

Read more »

Man data analyze
Stocks for Beginners

Beginners: 2 Market-Beating Stocks Just Getting Started

Brookfield Asset Management (TSX:BAM.A)(NYSE:BAM) and Constellation Software (TSX:CSU) are proven market beaters that could continue their ways.

Read more »

oil and natural gas
Energy Stocks

Small OPEC+ Oil-Output Hike: Buy More Energy Stocks?

Energy stocks could soar higher, because oil markets will remain tight due to the small production increase by OPEC+.

Read more »

Various Canadian dollars in gray pants pocket
Dividend Stocks

3 Top TSX Dividend Stocks to Buy for Monthly Passive Income

Top TSX stocks with monthly dividends now trade at cheap prices for investors seeking passive income.

Read more »

edit Person using calculator next to charts and graphs

Where to Invest $500 in the TSX Right Now

Long-term investors can look to buy stocks, including Suncor Energy and Shopify, as they are poised to outpace the broader…

Read more »

Canadian Dollars
Dividend Stocks

Create Free Passive Income and Turn it Into Thousands With 1 TSX Stock

If you can't afford to invest, you can certainly create passive income another way and use that to invest in…

Read more »

falling red arrow and lifting

2 Oversold TSX Stocks That Should Bounce Back

Stocks that are oversold without an external catalyst like a market crash or a weak sector might be risky buys,…

Read more »