Over the years, many have been successful at investing, while others haven’t had as much success. Everyone wants to buy the best Canadian stocks, but how you choose the stocks and when you decide to buy them can be the difference between major success and a portfolio that struggles to grow.
But while there are tonnes of factors to consider with investing, and in some cases, it can be a little complicated, the actual strategy of buying and holding for the long run is extremely simple.
Warren Buffett has taught and proven that if you find high-quality stocks you can rely on and hold them for decades, you are far better off than consistently trying to time the market, buying and selling different stocks all the time as market conditions change.
So if everyone knows they should be investing for the long run, why doesn’t everyone do it?
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If you want to buy and hold the best Canadian stocks, you need to manage your emotions
Buying and holding stocks sounds easy. However, the hardest part and something that’s crucial for every investor is being able to handle your emotions and exercise tonnes of discipline. That often means staying put and doing nothing when you have the urge to buy or sell stocks.
For example, when prices are rising, and you have the urge to sell, don’t. If it’s such an excellent company and was worth owning in the first place, it should continue to be an excellent investment for years to come.
Conversely, when prices are falling, and you know the stock you own is high-quality, worth more and will eventually recover, don’t sell. Instead, it’s the perfect time to consider buying more.
It sounds simple but staying disciplined can be difficult. Buying stocks when everyone else is selling takes a lot of confidence in the stocks you own.
But if you truly believe in these companies and have the patience to wait for them to appreciate and create value, you’ll set yourself up to be successful.
Investing for the long haul, staying disciplined, and having patience can lead to brief periods where your portfolio underperforms. But over the long haul, you should continue to see your investments grow considerably.
In 1990, Buffett’s company lost 23% and underperformed the broader market, which lost 3% that year. However, in the eight years that followed, Buffett’s stock earned positive returns. And in seven of those years, the company outperformed the market, earning incredible returns of between 29% and 58%.
So if you can manage to identify the best Canadian stocks to buy, have the discipline and patience to hold for the long haul, and be willing to add to the portfolio when they trade at a discount, you’ll optimize your long-term potential.
A few top picks to consider today
If you’re looking for examples of top stocks to buy for the long haul, there are several opportunities to consider today. Of course, many high-quality, high-potential tech stocks trade undervalued such as Shopify and Lightspeed Commerce.
But there are also plenty of growth stocks in other industries to consider. One of the best Canadian stocks to buy now is InterRent REIT (TSX:IIP.UN).
For years the residential real estate investment trust has been an incredible growth stock. As the market has gotten choppy over the last couple of months, though, InterRent has been selling off.
This has happened time and again to InterRent stock over the years, with the REIT continuing to bounce back stronger every time.
It owns such high-quality assets and has such a simple and repeatable strategy to create value that it’s one of the best Canadian stocks you can own. And because it’s now trading significantly undervalued, it’s also one of the best Canadian stocks you can buy today.
So if you’re looking to grow your capital as efficiently as possible, it’s paramount to buy high-quality Canadian stocks like InterRent and hold them for years to come.
