Billionaires Are Still Buying Stocks: Here’s 1 Great TSX Name to Own

The market crash has helped identify which stocks can survive a crisis. Here’s why future billionaires should consider Shopify Inc. (TSX:SHOP)(NYSE:SHOP).

| More on:
A close up image of Canadian $20 Dollar bills

Image source: Getty Images

Bullish billionaires are still buying stocks. Indeed, contrarians aren’t looking at the market and seeing bloodshed – they’re seeing opportunity. This is the kind of market that comes around once in a generation. It’s a chance to get in at the ground floor. Investors who buy now and hold for the long-term could become millionaires.

And if they’ve got enough cash and make the right financial choices, they could become billionaires. This week, the head of the European Commission, Ursula von der Leyen, stated that the economy had gone into hibernation. That’s a great way to look at the current situation. Yes, a recession could be imminent. And yes, if things deteriorate, an economic depression could emerge.

But seeing the current situation as hibernation is a great mindset. Of course, the opportunity to buy cheap quality stocks also exists. The coronavirus crash is therefore both a reset and a pause button.

Contrarians looking to make a fortune in the long-run have some great stocks to choose from at the moment. Some blue-chip stocks are trading with historic fundamentals right now.

An opportunity for future billionaires

Shopify (TSX:SHOP)(NYSE:SHOP) was up 20% this week on average. That’s a great performance given the effects of COVID-19 on the markets. Indeed, the coronavirus market crash is showing which names are truly heroic right now.

Many supposedly defensive stocks are falling by the double digits, with some names down 30%. But Shopify has appreciated 120% in the last 52-week period.

Okay, Shopify doesn’t fit a passive income thesis. Dividend investors may pass it over for this reason. But the billionaires of the future could have a winner on their hands with this innovative online retail pick.

Current billionaires like Warren Buffett, meanwhile, are buying into airlines — another smart move for an eventual recovery. People will likely take to the skies in droves once the coronavirus crisis has abated.

Get ready to buy-and-hold

Some pundits were declaring that the TSX was back to business as usual this week — which seems a trifle premature. There is certainly a case for buying coronavirus stocks right now, including great online names like Shopify. But not because we’re no longer in the middle of a crisis. As much as some people may wish it to be so, the coronavirus is still very much with us.

Indeed, even if the coronavirus were to disappear tomorrow, many sectors have already been hurt. The effects could last for a multi-quarter period. Canny shareholders will have used the strength in the TSX this week to trim weak names from their portfolios. Look for a return of rising higher-risk assets as a sign of recovery.

The bottom line

Right now, low-risk investors should focus on dividend stocks. However, a few non-dividend names have really stood out during the coronavirus market crash. Shopify is one of those names. It’s got a highly maneuverable business model, and it supports social distancing.

For future TSX billionaires, stocks like Shopify could boost portfolio returns many times over in the long term.

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 Victoria Hetherington has no position in any of the stocks mentioned. Tom Gardner owns shares of Shopify. The Motley Fool owns shares of and recommends Shopify and Shopify.

More on Tech Stocks

clock time
Tech Stocks

Long-Term Investing: 3 Top Canadian Stocks You Can Buy for Under $20 a Share

These three under-$20 stocks offer excellent buying opportunities for long-term investors.

Read more »

Businessman holding AI cloud
Tech Stocks

AI Will Transform Everything: Investors, Be Early Adopters and Buy These 3 Stocks

Investors looking to invest in companies doing big things in AI should consider these three stocks for their portfolios.

Read more »

stock research, analyze data
Tech Stocks

Forget Shopify: These Unstoppable Stocks Are Better Buys Today 

Should you consider buying Shopify stock while rivals consider a buyout or should you go for stocks with a stronger…

Read more »

A colourful firework display
Tech Stocks

2 Potentially Explosive Stocks to Buy in March

These two growth stocks are destined for many more years of market-crushing returns.

Read more »

edit CRA taxes
Tech Stocks

TFSA Millionaires Are Learning They Can Still Be Taxed

If you day trade stocks like Shopify (TSX:SHOP) in a TFSA, you may be taxed.

Read more »

Shopping and e-commerce
Tech Stocks

Where Will Lightspeed Stock Be in 5 Years?

Lightspeed stock (TSX:LSPD) continues to be touch and go, so what might happen in the next five years?

Read more »

Technology
Tech Stocks

Here’s Why Constellation Software Is a No-Brainer Tech Stock

Are you looking for tech stocks to add to your portfolio? Constellation Software is a no-brainer!

Read more »

Businessman holding AI cloud
Tech Stocks

2 AI Stocks That Wall Street Likes Better Than Nvidia

NVIDIA (NASDAQ:NVDA) may be trendy but Shopify (TSX:SHOP) has more upside according to Wall Street.

Read more »