It is never too late to start investing in Canadian stocks. If you wait for a perfect market bottom to start investing, you will likely never find it. Timing the market is impossible. When investing, there is never a good time to invest. There is always something the market is worried about.
Save, invest, and repeat
To alleviate this strain, I just save regularly and invest regularly. Investing regularly allows me to layer into positions. It also gives me grace if I get valuations slightly wrong.
The key is to start and let the power of compounding work in your favour. That is why buying and holding (not trading) stocks is so important. The longer you a hold a quality company, the longer it can snowball earnings and returns for you.
If you are looking for Canadian stocks you can buy and never sell, here are three that are perfect starters for a beginners’ portfolio.
A top consulting stock
WSP Global (TSX: WSP) is one of the largest design and consulting companies in the world. This company is a growth-by-acquisition story. It has added over 20 consulting firms to its platform since 2012. After some recent acquisitions, it has become particularly well positioned in the green transition space. This segment should have many years of growth ahead.
Over the past six years, WSP has grown revenues by 61% and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) by 165%. Just on organic growth alone, the company has an impressive three-year forward plan to grow earnings by 50% or more.
WSP has a great balance sheet, ample acquisition targets, and a diverse, stable business. Over the past 10 years, this Canadian stock has delivered a 515% return.
A top Canadian financial stock
Speaking of compounding, Brookfield Asset Management (TSX:BAM.A)(NYSE: BAM) has delivered solid, steady returns for years. Not including spinouts (which, there have been many), Brookfield stock has delivered a 17.7% compounded annual return over the past decade.
This stock is a natural diversifier for any portfolio. It manages a diverse array of alternative assets including real estate, infrastructure, renewables, private equity, and insurance. It has more than $650 billion of assets under management.
The company has a counter-cyclical approach to investing, so its business can do well in both good and bad markets. BAM has great assets, a strong balance sheet, and a great management team. All this makes it a solid buy-and-hold Canadian stock for years ahead.
A top Canadian tech stock
Constellation Software (TSX: CSU) is a remarkable Canadian technology stock. Since inception, its returns have outpaced tech giants like Microsoft, Apple, and Nvidia. Over the past 15 years, it has multiplied investor’s money by 100 times. It has consistently delivered +35% annual total returns.
Constellation acquires small vertical market software businesses. These businesses have strong market moats and fulfill essential software niches. Consequently, they generate very stable streams of cash flow. Constellation takes those cash flows and then reinvests into more businesses.
Constellation has some of the best money allocators in the world. It’s an expert at turning capital into enduring accretion and earnings. Give it your capital, it will treat you like a partner, and you will likely earn exceptional long-term returns.
