As anyone who follows Warren Buffett knows, the best stocks to own are those you never have to sell. Of course, we invest for the long run, but the fewer stocks you have to buy, the easier it will be. If you can find a core group of Canadian stocks that will grow for years, consistently outpacing the market, this will be the most efficient way to grow your portfolio.
When referring to his company’s investment philosophy, one of Buffett’s most famous investing quotes is, “Our favourite holding period is forever.”
Buffett looks for stocks to buy that have such incredible businesses that he expects to own them forever. This way, over time, you build a portfolio of all the very best companies.
So anytime you are looking to buy a stock, the goal should be to own it for decades. Of course, you never know what could happen, and you need to be flexible. But ultimately, most companies you buy, you’ll be buying because it’s an excellent company. And if it’s so great and should be around for decades, there shouldn’t be any reason to sell.
So if you’re looking for high-quality companies like this to buy for your portfolio, here are two top Canadian stocks I don’t think I’ll ever sell.
A top Canadian financial stock
One of the best stocks in Canada that may never give you a reason to sell is Brookfield Asset Management (TSX:BAM.A)(NYSE: BAM).
The massive financial stock is an incredible investment company with a high-quality strategy and a track record of proven growth for years.
Over the last five, 10 and 20 years, Brookfield has grown its shareholders capital at a compound annual growth rate of at least 18%, an incredible amount. Over 20 years, that’s a total return of nearly 3,000%.
The reason Brookfield is so consistent and such an excellent Canadian stock to buy is that it invests in assets all over the globe in some of the best long-term industries, such as renewable energy and infrastructure.
And going forward, Brookfield is planning a strategic pivot which looks to be a prudent move and makes an already highly appealing company even more attractive to buy and hold for the long-term today.
At its recent investor day, the company announced that it would be looking to add more investments in new industries such as technology and insurance. This shows Brookfield is always looking to the future and the next potential investments that will be growing for decades to come.
The Canadian stock is always making these prudent strategic actions and has many qualities that align with the principles of long-term investing. That’s why it’s one of the top Canadian stocks you can own and one I don’t ever think I’ll sell.
A top Canadian Dividend Aristocrat
Another high-quality business that you can own for years is North West Company (TSX: NWC). North West is a consumer staple stock operating in underserved and remote communities in Northern Canada, Alaska, and the Caribbean.
It’s by no means is my largest holding and probably won’t be yours either. However, it’s a highly safe and reliable business for the core of your portfolio that you can plan to hold for years.
It’s, of course, a Canadian Dividend Aristocrat and currently offers an attractive yield of nearly 4.5%. And recently, the stock has made excellent progress in managing its costs and improving its margins.
This has led to a nearly doubling of its operating margins and a 50% increase to its net income compared to just about 10% of growth in its revenue over the last two years.
When highly resilient stocks like North West can also grow their income and consequently their stock price consistently, it’s just a cherry on top. Plus, it shows why it’s worth it to hold these high-quality, low-volatility stocks for years.
So if you’re looking to shore up your portfolio, North West is an incredible Canadian stock that you can plan to hold for decades.
