Value Investors: The Key to Getting Rich Slowly

Read about my strategy on value investing, how to choose companies, and three picks: Telus Corporation (TSX:T)(NYSE:TU), Jamison Wellness (TSX:JWEL), and Alimentation Couche-Tard (TSX:ATD.B).

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Getting rich slowly isn’t as fun as watching one’s portfolio go parabolic in a short amount of time. It’s a long, arduous climb interspersed with peaks and valleys. That said, it’s also absent the euphoria and consequent depression faced by cannabis or Bitcoin investors. This benefit is often overlooked by some investors. Nothing can ruin one’s mental health more than obsessively watching stock prices shoot up and down violently, in my view.

In this article, I’m going to discuss three stocks that can help keep your blood pressure down while offering excellent long-term upside.

Telus

As far as slow and steady stocks go, Telus (TSX:T)(NYSE:TU) has been one of my top picks in recent years and continues to be. The Canadian telecommunications giant provides investors with a tremendous amount of built-in value. The company has continued to prove it is an excellent capital allocator. Further, Telus is poised to take off along with the broader sector as 5G gets rolled out.

Telus is a very attractive valuation right now. The company has a lower valuation than similarly sized utilities. Further, I believe much of this is due to previously announced government regulations targeted at reducing the cellular bills of Canadians, which are among the highest in the world.

I view the telecommunications sector as essential. Additionally, I don’t fully subscribe to the view that the pricing of power companies like Telus will be impaired long term. Consumers are going to demand more innovation in this space and will pay for it.

Jamieson Wellness

One of the pieces of advice given to me by another analyst was to look at my shopping cart. Then consider which companies supply those goods when looking for defensive growth. More and more consumers are taking supplements, and in increasing quantities.

The margins supporting Jamieson Wellness’s (TSX:JWEL)  earnings propelled this stock higher. The stock now sits around 25 times 2020-2021 expected earnings — certainly not a cheap valuation. That said, I think that market is being rational with respect to the stock. I view Jamison as a great fundamental pick for the next five years or so for investors looking for a growth at a reasonable price option.

Alimentation Couche-Tard

Perpetual value play, Alimentation Couche-Tard (TSX:ATD.B) seemingly always remains at a discount valuation. The company has been a top pick of mine for some time. The company has a robust business model and a strong balance sheet. These provide resiliency in a time when investors looking for stability perhaps more than growth.

As a global player in convenience stores and gas stations, Couche-Tard has undoubtedly encountered a set of difficult economic circumstances. These will impact earnings over the short-term period. Understandably, this will result in a valuation, which, like the broader market, does not price much in the way of optimism.

That said, when I think of companies that are likely to come out of this pandemic stronger than before, Couche-Tard is a no brainer, in my view. Folks are itching to get out of the house and commence driving. I do see a V-shaped recovery potentially on the horizon. Long term, I also see excellent growth potential for Couche-Tard. This is based on the growing number of high-quality acquisition targets, which should become available as a result of this pandemic.

Stay Foolish, my friends.

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 Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool recommends ALIMENTATION COUCHE-TARD INC.

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