TFSA investors with a long-term time horizon should strive to keep things simple. While the allure of betting big on Bitcoin, Ether, and other high-momentum assets is at a high point, investors must resist the urge to bet a considerable amount on such investments that could easily reverse course overnight. Indeed, investing is not about building wealth at the quickest rate possible, but building wealth slowly and steadily to minimize the odds of substantial blow-ups.
Undoubtedly, time is on the side of many young TFSA investors. And while it is tempting to dabble with risky assets that could fold unexpectedly, one must use funds they’re not willing to gamble with to maximize their returns — not their total returns, but their risk-adjusted returns, which are returns relative to risks one stands to bear.
Forget Bitcoin: Consider TSX growth stocks for the long haul
Sure, Bitcoin and all the sort have astronomical upside potential. At the same time, the downside risks are equally as unfathomable, making a thorough evaluation of the risk/reward difficult, if not impossible. Yes, Bitcoin is an incredible technology. Blockchain tech is here to stay. But Bitcoin isn’t the only way to play the blockchain. And over 15 years, it’s hard to tell where Bitcoin will be. Will it still be the most valuable cryptocurrency? Or will it be worth a fraction of what it’s trading at today, like tech stocks in the late 90s?
It’s hard to tell. Bitcoin is a great instrument to trade or speculate one’s disposable income with, but for serious TFSA investors who can’t afford big setbacks, common stocks remain the way to go!
TFSA Investors: Consider winners likely to keep their winning streaks alive!
In this piece, we’ll have a closer look at one TSX growth stock that investors should feel content holding for the next 10-15 years. Indeed, shares of the name have a fair amount of momentum behind them, though not nearly to the extent as Bitcoin or anything of the sort. But arguably, the stock’s momentum, I believe, is very well supported by real fundamentals and incredible growth stories that have a good likelihood of becoming successful over the course of the next decade and beyond. For TFSA investors, especially younger ones, likely sustainable momentum and a high growth ceiling is arguably the most one could ask for.
Of course, one must always pay attention to the pay they’ll end up paying. At this juncture, valuations seem fair enough to get skin in the game. That said, TFSA investors should always be relishing chances to buy more shares on any meaningful (and inevitable) pullbacks over time.
Aritzia: The perfect buy-and-forget stock for TFSA investors
Without further ado, consider women’s clothing retailer Aritzia (TSX: ATZ), which has been one of Canada’s hottest retail stocks over the past two years. The company has enjoyed a sample of incredible success with its American expansion. COVID disruptions have weighed, as shopping malls shuttered. Still, the company’s brilliant managers found a way to continue higher, thanks to its robust e-commerce business. In terms of omnichannel retail, it’s tough to match Aritzia. In many ways, the company rhymes with the likes of a Lululemon. Aritzia’s incredible brand is more than capable of keeping margins high, and it’s hard to find any hair on the firm’s quarterly results, which were strong in the face of unprecedented headwinds.
Aritzia’s resilience through 2020 and early 2021, I believe, is a testament to the strength of Aritzia’s brand, which could grow at the international level, just as Lululemon did many years ago. Things are looking up, way up, for the mid-cap retailer that still seems too cheap versus its growth potential on the other side of the pandemic. For that reason, I wouldn’t hesitate to do some buying, even at a fresh all-time high at $52 and change. Long-term TFSA investors, take notice!
