2 Stocks That Could Grow Your Portfolio Over the Next Decade

If you got a decade-long time horizon, here are two top TSX stocks that could significantly grow your portfolio.

| More on:
STACKED COINS DEPICTING MONEY GROWTH

Image source: Getty Images

Buying stocks for the long term is often the best investment strategy for many Canadians. Thinking like a long-term investor (rather than a trader or speculator) can be a great way to build wealth.

Great investors like Warren Buffett and Charlie Munger have made their fortunes by buying top-quality companies and holding them for decades. In fact, Mr. Buffett once thoughtfully remarked, “The stock market is designed to transfer money from the active to the patient.”

If you are interested in being patient for the next decade or more, two stocks that could significantly grow your portfolio are WSP Global (TSX:WSP) and Canadian Pacific Railway (TSX:CP)(NYSE:CP).

WSP Global stock

WSP Global is fast becoming a global leader in consulting, engineering, and design. Recently, it has pursued an acquisition streak focused on environmental consulting. In 2022 alone, it has added three large consulting businesses to its portfolio.

Environmental consulting now makes up an approximate 30% piece of its business. Given global environmental and climate change concerns, this should provide strong long-term growth.

A National Bank analyst recently noted that these acquisitions could accrete as much as 15% earnings-per-share growth in 2022 alone. This doesn’t factor in organic growth from its current operations either. The analyst increased their price target to $188 per share, which would project 18% upside from here.

WSP has a long track record of making smart, accretive acquisitions. Since 2012, it has added nearly 25 consulting firms. These significantly expanded its expertise and geographic exposure. Since its initial public offering in 2014, WSP stock has delivered a 452% (or 22% annual) total return.

This stock is not cheap (it never is), but it is one of the highest-quality consulting businesses in the world. Given strong tailwinds supporting growth and a great operational platform, I expect strong returns for many years ahead.

top stocks for your long-term portfolio

CP Rail

You may not consider a boring blue-chip stock like Canadian Pacific Railway (TSX:CP)(NYSE:CP) a growth stock. Yet it has delivered very strong historical returns. Over the past decade, it has earned shareholders a very strong 566% total return (20.8% annually).

CP has been a pioneer in driving very efficient railroads across Canada. It has used its large land assets to expand, develop, and grow its transport network. This network is set to grow significantly larger if its deal to merge with Kansas City Southern railroad gets approved by regulators.

It would be the first and only Canada-America-Mexico railroad. The deal could provide very long-term growth opportunities. Like WSP, this is not a cheap stock by any means. However, if it can deliver results like it had in the past, it could be a very good stock for long-term investors.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Robin Brown has positions in WSP GLOBAL INC. The Motley Fool recommends WSP GLOBAL INC.

More on Stocks for Beginners

Plane on runway, aircraft
Stocks for Beginners

Up 53% From its 52-Week Low, Is Cargojet Stock Still a Buy?

Cargojet (TSX:CJT) stock is up a whopping 53%, nearing closer to 52-week highs from 52-week lows, so what's next for…

Read more »

Businessman holding tablet and showing a growing virtual hologram of statistics, graph and chart with arrow up on dark background. Stock market. Business growth, planning and strategy concept
Dividend Stocks

TFSA Magic: Earn Enormous Passive Income That the CRA Can’t Touch

If you're seeking out passive income, with zero taxes involved, then get on board with a TFSA and this portfolio…

Read more »

Man with no money. Businessman holding empty wallet
Dividend Stocks

2 Stocks Under $50 New Investors Can Confidently Buy

There are some great stocks under $50 that every investor needs to know about. Here’s a look at two great…

Read more »

potted green plant grows up in arrow shape
Stocks for Beginners

3 Growth Stocks I’m Buying in April

These three growth stocks are up in the last year, and that is likely to continue on as we keep…

Read more »

Growth from coins
Dividend Stocks

1 Grade A Dividend Stock Down 11% to Buy and Hold Forever 

If you're looking for the right dividend stock at the right price, you're going to want to consider this insurance…

Read more »

IMAGE OF A NOTEBOOK WITH TFSA WRITTEN ON IT
Stocks for Beginners

3 TFSA Hacks That Could Make You a Millionaire

Do you want a $1 million without worrying about the tax bill? These TFSA hacks could help you become a…

Read more »

Early retirement handwritten in a note
Stocks for Beginners

These 2 TSX Growth Stocks Could Help You Retire Early

Buying these two TSX growth stocks can help you retire early by multiplying hard-earned savings in the long run.

Read more »

Technology
Stocks for Beginners

The Best Stocks to Invest $1,000 in Right Now

Want a great starter portfolio? Here’s a list of the best stocks to invest $1,000 in right now for long-term…

Read more »