Looking for TSX-listed stocks that would make the Oracle of Omaha’s cut? I’ve got two picks every investor ought to consider right here at home. Canada is full of great companies, but only a select few would get the blessing of Mr. Buffett himself. I think these two companies would definitely make the cut.
One of the greatest “forever” companies on the TSX has to be Canadian National Railway (TSX:CNR)(NYSE:CNI). Given Buffett’s long-term forays into railroads over the decades, this is a stock that would definitely fit his purview. Indeed, the Oracle of Omaha hasn’t ventured north of the border for any railroad businesses. That said, I think CN is probably the best Canadian option out there today.
One of Buffett’s close friends, Bill Gates happens to be a real long-term believer in CN as well. As I mentioned in a recent piece, this Canadian railroad is backed by Cascadia Investments, which happens to be CN’s largest shareholder. Who is behind Cascadia? Bill Gates and his endowment fund; that’s who. With an investment time horizon of approximately forever, these are truly long-term investors backing this is a railroad.
I think CN is a fantastic business for the long-term investor to own. The company’s business model is set up well for decades of growth. Additionally, rail continues to be the most environmentally friendly transportation method for bulk loads. The secular drivers behind CN are incredibly strong, and I think will continue to be there 30 years from now.
I’ve put Restaurant Brands (TSX:QSR)(NYSE:QSR) on the list precisely because it’s a company Buffett has done business with in the past. Warren Buffett helped put this company together and also helped finance the Popeyes acquisition.
I think there’s a likelihood another acquisition could be on the horizon for Restaurant Brands. Additionally, I think Warren Buffett would be the first call of QSR’s management team. Indeed, if one has Warren Buffett in one’s rolodex, that better be your first call when the time comes for another deal.
The quick-service restaurant business is one that is highly defensive and has shown incredible stability through the volatility we saw last year. I think this is the perfect long-term type of holding Warren Buffett would approve of. No one knows what the future holds, but I think this is a company that could get Buffett’s much sought after blessing at some point over the long term.
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Fool contributor Chris MacDonald has no position in any of the stocks mentioned. David Gardner owns shares of Canadian National Railway. The Motley Fool owns shares of and recommends Canadian National Railway. The Motley Fool recommends Canadian National Railway and RESTAURANT BRANDS INTERNATIONAL INC.