Investors should think of positions as stocks that they have no intention of selling. Taking this sort of mindset will help you to see your investment thesis through, even during tougher market periods. At the end of the day, you’re buying a business, and it’s important for business owners to believe in the companies they own. I try to keep this sort of mindset when it comes to my own portfolio. Admittedly, it’s a lot easier to keep this mindset in mind with the stocks I’m much more bullish on.
With that in mind, here are two TSX stocks I’m never selling.
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A growth stock in my portfolio
If there’s one growth stock in my portfolio that I would never sell, it’s Shopify (TSX: SHOP)(NYSE:SHOP). I believe that this company still has an incredible growth runway ahead because of the potential within the e-commerce industry.
Around the world, e-commerce sales have increased dramatically over the past few years. In the United Kingdom, e-commerce sales represent about a third of all retail sales. In the United States, it represents about 13% of all retail sales. It’s projected that the global e-commerce industry could grow by 50% over the next four years.
Shopify is poised to benefit from this massive and emerging industry. It has established itself as a leading player, providing a platform and many of the tools necessary for merchants to operate online stores. Shopify is very attractive, because it offers a variety of packages, allowing merchants to choose a solution which meets their specific needs. Because of this, Shopify has managed to attract first-time entrepreneurs and large-cap enterprises as customers.
Shopify is also led by its founder-CEO Tobi Lütke. Historically, founder-led companies tend to outperform companies led by non-founders. In addition, Lütke holds a large ownership stake in the company. This suggests that he’s willing to be rewarded based on Shopify’s performance. It also signals to investors, that the company’s interests are align with that of the shareholders.
It’s no secret that Shopify stock has struggled immensely over the past year. However, I’m still a big believer in this stock and I have no intention of selling it.
A top dividend stock
Dividend investors may be interested to learn that I have no plans to sell any of my Bank of Nova Scotia (TSX: BNS)(NYSE: BNS) shares. The Canadian banking industry is one of the most influential industries in the country. Of the eight largest companies in Canada, four of them are banks.
The reason I like Bank of Nova Scotia is because of its focus on international growth. The company has positioned itself as a true competitor within the Pacific Alliance. This is a region that includes the countries of Chile, Columbia, Mexico, and Peru. Economists believe that the economy in this region could grow faster than that of Canada and the United States over the coming years. This is supported by Bank of Nova Scotia’s latest earnings presentation, where it reported that company growth was mainly driven by its international business segment.
It also doesn’t hurt that Bank of Nova Scotia offers a very reliable dividend to investors. It has been paying shareholders a portion of its earnings in each of the past 189 years.
