I’ve got some bad news for the fellas reading this article. It turns out, women are better investors than men.
Well, that’s not exactly true. It’s dangerous to state that one gender is better than the other at anything, because these days we know things just aren’t that simple — people of both genders are equally capable of becoming good investors.
Still, there are certain qualities that successful investors tend to possess. Good investors are generally patient, and willing to sit on the sidelines until a good opportunity presents itself. Successful investors tend to remain calm under pressure and have long-term outlooks. They also tend to do more research and trade less, preferring a buy and hold technique.
While it’s very possible for men to have these attributes, women tend to exhibit these qualities more often. We even wrote a book about it — Warren Buffett Invests Like a Girl.
Here are three stocks that should be in the portfolios of successful investors, no matter their gender.
The company’s wireless division continues to significantly outperform its competitors, growing the number of subscribers, while also growing the average revenue per user. In fact, Telus just passed BCE as Canada’s second largest wireless provider.
Telus also has rock-solid home phone and internet businesses, and has just recently added television to its offerings. Even though the company’s cable service is only available in large centers in B.C., Alberta, and Quebec, Telus has still signed up almost one million Canadian homes to its cable and satellite service. The company’s satellite service is available across the country.
Telus also rewards long-term shareholders by increasing its dividend and buying back stock. In the last year, the company has bought back about 5% of outstanding shares, and has raised its quarterly dividend by more than 50% over the past five years. The stock currently yields 3.75%.
Although it might not look like it in the short term, it’s obvious the world is going to become more dependent on nuclear energy. Patient investors can play this upcoming trend by buying shares in Cameco (TSX: CCO)(NYSE: CCJ), Canada’s largest uranium producer.
Japan’s Fukishima disaster was a black eye for nuclear power, but the fact remains that catastrophic failure is extremely rare for nuclear plants. With each natural disaster, plant operators learn how to further enhance safety measures, leading to safer technologies down the road. Supplies of fossil fuels will eventually run out, and new nuclear technology has greatly reduced the amount of waste from the process.
Cameco has all the attributes investors are looking for in a long-term investment. It’s in an industry with significant long-term growth potential, it has solid financial footing, a depressed price level, and investors are getting paid nearly 2% to wait.
If you asked 100 Canadian investors which retailer is the country’s best, I bet the majority would answer Canadian Tire (TSX: CTC.A). The company is firing on all cylinders right now.
Even though many of its competitors are reporting weak results, Canadian Tire continues to deliver. The company has increased its dividend twice over the past year, bumping it to a 1.9% yield. Both revenue and profits have increased by an average of 7% annually since 2009, meaning the company has terrific pricing power. That’s hard to achieve in today’s tough retail environment.
Canadian Tire just raised $500 million by selling off just 20% of its credit card division to Bank of Nova Scotia, which shows investors just how desperate banks are to grow that part of their business. Look for that $500 million to get reinvested in Canadian Tire’s main business, or perhaps as part of an acquisition of one of Canada’s smaller retailers.