Not too many stocks out there are worth a permanent spot in your Tax-Free Savings Account (TFSA) or Registered Retirement Savings Plan (RRSP). Undoubtedly, it’s nice to think long term and hope to hang onto shares of a company you truly love for life. Though a “forever” holding period isn’t too realistic, given life’s uncertainties tend to be a tad on the pricey side, I think those seeking names they can truly forget about for years (or decades) at a time have the right mindset and investment horizon to do really well in stocks through their investing careers.
In this piece, we’ll just have a glimpse at two of the names in my TFSA that I don’t plan to sell anytime soon. Though it would be nice to hang onto shares for at least 25 years, I acknowledge that unforeseen costs can happen. If they do, the following two names that are last on the list to liquidate. Further, it’s also worthwhile checking in with your favourite stocks to ensure that the long-term thesis is still intact.
Over time, things can change, moats can narrow, managers can lose their competitive edge, and earnings (or dividend) growth can sag. The same companies we loved when we first bought may evolve to become firms that we may need to break up with. Indeed, we live in a fast-paced world where yesterday’s relative unknown can be tomorrow’s next big thing.
That’s why it’s vital to continue putting in the due diligence in the years that follow your first purchase of a “permanent” TFSA holding. The following two names have not changed a whole lot in recent years, even with the rise of artificial intelligence and other potentially disruptive trends. Without further ado, please consider Restaurant Brands International (TSX: QSR) and Berkshire Hathaway (NYSE: BRK.B).
Restaurant Brands International
Restaurant Brands is a mix of solid fast-food brands, including Tim Hortons, Burger King, and Popeyes Louisiana Kitchen. The stock has been on a hot run and is just shy of the $100 mark — a level that I believe will be broken in just a matter of time.
Despite the hot past year of trading, I remain a raging bull on the company and its prospects, as it looks to continue modernizing amid turbulent economic conditions.
With a 3.04% dividend yield, QSR stock is a bountiful dividend payer that has a world of growth opportunities ahead of it. It’s been quite a while, but I think new highs may be just around the corner, regardless of where rates go or when that recession finally hits us in the pocketbook.
Berkshire Hathaway
Berkshire Hathaway is a company that I don’t ever plan to sell. Warren Buffett is one of the greatest investors of our generation. And though he won’t remain at the helm of Berkshire forever, I believe his values have been passed down to his successors. In that regard, I believe that Buffett’s values will last for many decades down the road.
Though Berkshire may have a slightly tougher time topping the S&P 500 in the new era, I must say I am encouraged by the company’s abilities to invest in the modern era. Whether we’re talking about the big bet on shares of Apple or other smart moves, I’m more than comfortable than ever letting Berkshire’s bosses do their thing.
I think Buffett has made fine selections, and I will look to accumulate more B shares (I wish I had enough to own the A shares!) on any meaningful dips in the future.
