Although the Canadian stock market offers investors a plethora of outstanding companies, it’s essential that Canadians learn how to invest in international stocks. This is because international stocks could provide different opportunities to investors by exposing them to different kinds of companies and industries. In addition, investing internationally provides your portfolio with added diversification and, thus, protection should the Canadian economy suffer in some way.
In this article, I’ll discuss three stocks that trade in the U.S. that every Canadian investor should know about.
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This is my favourite stock
Some investors will say that you shouldn’t pick favourites. These investors likely treat every stock in their portfolio as a business decision and not something that you should become attached to. However, I believe that there isn’t anything wrong with being more attached to one or two companies in your portfolio if you think the potential return there is much larger than in the other stocks you hold.
For example, I strongly believe that Sea Limited (NYSE: SE) offers investors a tremendous growth opportunity. This company operates in the e-sports, e-commerce, and digital banking industries. On their own, each of those industries is very exciting. However, the fact that Sea Limited operates in all three makes it one of the most attractive companies I’ve seen in a long time. In its most recent earnings presentation, the company reported US$3 billion in its first-quarter (Q1) revenue. Sea Limited stock has gained 245% over the past five years.
One of the biggest companies in the world
When investing internationally, it’s important that you stick to companies that operate businesses you’re capable of understanding. That’s why Microsoft (NASDAQ: MSFT) is another U.S. stock that Canadians should consider buying today. This is a name that nearly every person on Earth should be familiar with. The company holds a very formidable 68% share of the global desktop operating systems market. Its next closest competitor holds a 21% share.
Microsoft stock has been very impressive in recent years. In fact, over the past five years, the stock has gained about 220%. It should be noted that despite being one of the largest companies in the world by market cap, Microsoft is not immune to macro conditions that affect other stocks around the world. From December 2021 to November 2022, the stock fell more than 35%. However, it has since recovered all of those losses, proving that the stock remains as resilient as ever. As of this writing, Microsoft trades at all-time highs.
Have you considered this behemoth stock?
Finally, Canadians should consider investing in Mastercard (NYSE: MA). This is one of the largest credit card providers in the world. In 2020, it was estimated that nearly 40% of adults in the U.S. held at least one card provided by Mastercard.
A very impressive performer, Mastercard stock has gained nearly 90% over the past five years. That provides investors with very steady returns year in and year out. As consumers continue to shift towards e-commerce and digital payments, I believe Mastercard could continue to thrive. As a result, Mastercard stock could continue to grow steadily over the coming years.
