The world is changing, and it’s changing quite rapidly. And the change is permeating every facet of our lives, including investing. Take e-commerce and crypto as an example. E-commerce has revolutionized the business landscape, and while it sent some asset classes and businesses through the roof, others are steadily going down.
Bitcoin mining consumes more electricity than Finland’s 5.5 million population, and the total cryptocurrency market capitalization is higher than Alphabet’s.
Change has always been a part of the investment world. People who successfully predicted these changes before others and acted first usually became very successful, while the ones that couldn’t adapt on time perished.
The good news is that in this realm of variables, there are certain constants. Some investments and companies are almost evergreen. And even if you can’t hold them forever, you can still hold them for decades and take advantage of the time element of investing.
A transportation company
TFI International (TSX:TFII)(NYSE:TFII) is one of the most successful post-pandemic stocks and a consistent grower that outpaced several companies in the “length” of the recovery-fueled growth phase. It grew over 430% after the crash and almost 165% in the last 12 months, but the recovery momentum is finally slowing down. The price has barely budged since the end of July.
The good news is that despite its awesome growth, the value is relatively reasonable, at least from an earnings perspective, since the company is still trading at a price-to-book ratio of 5.2 times. The current growth is almost unprecedented for the company, but it was a decent growth stock even before the pandemic hit and catapulted several e-commerce businesses through the ceiling.
What makes TFII a decent holding for decades is its business model, network, and presence. The company operates one of the largest trucking fleets in North America and has an impressive logistics network. It has also started to expand into Mexico. E-commerce will likely stay strong for decades, and TFII, a crucial cog in the North American e-commerce industry, may keep prospering long term.
A golden company
One asset class that has survived the test of time and holds its value no matter where you are across the globe is gold. Investing in shiny metal is also a good way to hedge your portfolio against market downturns, as it usually thrives when the market is down. And if you invest in a royalty company like Franco Nevada (TSX:FNV)(NYSE:FNV), you might see decent capital appreciation in strong markets as well.
The company’s relatively “hands-off” approaches to the golden metal — i.e., royalties and streaming — is one of its main attractions. It makes the company relatively less vulnerable when the gold prices are down, yet it gets to capitalize on the upside. The long-term growth prospects of Franco Nevada are quite strong if you consider the 10-year 16.7% CAGR, which is both high enough (especially if you are holding it for decades) and sustainable.
Both Franco Nevada and TFI International are Dividend Aristocrats. Yet dividends are not the reason you should consider investing in these dividend stocks. Their long-term capital-appreciation potential makes them holdings worthy of staying in your TFSA or RRSP for decades. You might consider reinvesting the dividends back into your stake, as they might not offer a sizeable passive income anyway.