Selecting a good mix of stocks that can provide healthy growth over the long term can be an overwhelming task for some investors, particularly for those that are new to investing.
Fortunately, there’s no shortage of options to investors. Here are some of those options that might be worth considering for your portfolio.
Canadian National Railway Company (TSX:CNR)(NYSE:CNI) is a great long-term investment option for several reasons. Canadian National is not only Canada’s largest railway, but is also one of the largest on the continent. It’s the only railroad that has access to three different coastlines. That factor alone makes Canadian National an intriguing investment opportunity, but where the company really shines is when you factor in the sizable moat that prevents new competitors from emerging.
Railroads are unique in that they serve a key function in our economy. Few realize that railroads are responsible for hauling a significant portion of both raw materials and finished goods to markets right across the continent thanks to an impressive, yet dizzying array of tracks that traverse nearly every major city on the continent.
To even fathom a new competitor emerging to counter the supremacy of Canadian National would require tens of billions in investment and construction costs and take upwards of a decade in construction.
Canadian National trades at just over $100 and has a P/E of 19.71
Air Canada (TSX:AC)(TSX:AC.B) may be the largest airline in Canada, but its planes aren’t the only thing flying high over our heads. Few investors realize that Air Canada is one of the best-performing stocks on the market, with the stock soaring over 1,800% over the past five-year period.
As with just about any investment, past performance is hardly a reason to invest now, but Air Canada has several compelling reasons to sway investors.
First, the airline industry is enjoying one of its longest-running growth periods ever. This has allowed airlines to increase their networks and grow at a conservative rate contrary to previous business cycle fluctuations that had growth periods followed up with periods of massive losses. In other words, the current environment has allowed Air Canada to grow, yet be conservative enough for that growth to withstand a sudden shift in the economy.
That business maturity is one thing that the airline industry has lacked until recently and, as a result, has drawn in high-profile investors such as Warren Buffett.
Air Canada currently trades at just over $27 with a P/E of just 8.91.
Restaurant Brands International Inc. (TSX:QSR)(NYSE:QSR) is the name behind some of the most well-known and respected fast-food chains, including Burger King and Tim Hortons. Restaurant Brands was formed a few years back when both chains joined, and Popeye’s was recently added to the company’s brand portfolio.
One of the most compelling reasons to consider Restaurant Brands stems from the superb management of the company, which has not only integrated the various business units much sooner than most expected, but has also realized significant synergies from those mergers.
The company is also leveraging the strengths of one unit and applying it as an example to others. A key example of this is using Burger King’s successful franchise expansion model and applying it to Tim Hortons. As a result of implementing that model, Tim Hortons, in the past year, has opened or has announced plans to open franchise locations in Mexico, the Philippines, and the U.K.
Restaurant Brands currently trades at just over $84 and has realized superb growth of over 45% in the past year.
