It’s no secret when investing your money that if you want to be as successful as possible, you’re better off investing in TSX stocks for the long term.
Long-term investing eliminates a lot of short-term risk and uncertainty you can’t control. So as long as you find high-quality businesses to hold for the long-term, then you’re counting on the economy to continue to grow. That’s why it’s proven to be the best strategy.
So these days, investors are most often looking for high-quality growth at a reasonable price. However, these high-growth stocks can sometimes trade at huge premiums, so we want to make sure whatever price we pay is reasonable.
Looking at the TSX today, these are the top five stocks to buy and hold for the next 20 years.
Green energy stock
There is no question one of the best long-term growth industries you can invest in today is green energy. One of the best ways to gain exposure to this high-potential industry is Brookfield Renewable Energy Partners L.P.
Brookfield is by far the biggest green energy stock on the TSX. The company has assets all over the world and has been rapidly acquiring more.
This impressive growth makes Brookfield an extremely attractive stock, especially when considering all the organic growth potential in the green energy sector over the next few years. That’s why green energy is such a hot industry and why Brookfield is a top stock to own for the next decade.
Another top industry to be invested in for the long-term is the agriculture industry, and one of the best stocks to do it with is Nutrien Ltd.
Nutrien is dominant in its industry, which is naturally growing. As populations grow and demand for the agriculture industry continues to increase, Nutrien will naturally see a big boost to business.
The stock has been cheap for a while, and for a top TSX stock like Nutrien, that discount is too cheap to ignore.
Top industrial stock
If you want a business you can hold forever, Canadian National Railway should be at the top of your list. Railroads are great businesses because they are defensive but offer great growth long-term. CNR is an especially attractive choice because of how integrated it is in the economy.
Freight trains are by far the cheapest and most efficient method of transporting goods. So as long as the country continues to grow its economic output, CNR will be a top holding in your portfolio.
In the last 10 years, the TSX stock is up 377%. That’s incredible growth for a company worth just shy of $100 billion and shows what growth the business is still capable of as economies continue to expand.
Top TSX growth stock
One of the most attractive growth businesses investors can buy and hold today is Alimentation Couche-Tard Inc. Couche-Tard is a convenience store and gas station operator that has shown what an impressive business it is. Looking back to the last major recession, Couche-Tard has grown its gross and operating income in every single year since 2008.
That impressive growth in its business has resulted in a 998% gain in Couche-Tard’s share price. Plus, the company is in great financial shape today, and it’s already said it’s looking to make a high-value investment in a distressed competitor in the short term if it can.
This would certainly add more growth potential to Couche-Tard, a stock that already offers some of the best price performance on the TSX.
TSX tech stock
Shopify is the last stock on the list, but one with some of the most potential. Shopify was always a great long-term growth stock, as it’s at the centre of the rapidly growing e-commerce trend.
However, with the pandemic acting as a huge tailwind for Shopify’s business, its long-term potential has never been higher.
Shopify’s impressive platform that empowers small and medium-sized businesses to grow their business is crucial, especially since so many merchants get a boost to their business from its platform, which means almost all the merchants that use its platform will continue to use it, making the majority of Shopify’s revenue recurring.
The stock isn’t cheap, but given the growth potential Shopify offers, it’s trading at a reasonable price.
Motley Fool Canada's market-beating team has just released a brand-new FREE report revealing 5 "dirt cheap" stocks that you can buy today for under $49 a share.
Our team thinks these 5 stocks are critically undervalued, but more importantly, could potentially make Canadian investors who act quickly a fortune.
Don't miss out! Simply click the link below to grab your free copy and discover all 5 of these stocks now.
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 Daniel Da Costa owns shares of Brookfield Renewable Partners and Nutrien Ltd. David Gardner owns shares of Canadian National Railway. Tom Gardner owns shares of Shopify. The Motley Fool owns shares of and recommends Canadian National Railway, Shopify, and Shopify. The Motley Fool recommends ALIMENTATION COUCHE-TARD INC, Canadian National Railway, and Nutrien Ltd.