New long-term investors should seek investments they’d be comfortable holding for many years at a time. Undoubtedly, the most wonderful of investments may deserve a “forever” holding period. The late Charlie Munger was one of the best investors of our generation. And he was all about extremely long-term investing.
Though it may not be realistic to hang onto shares of a company forever, I think that mindset can direct investors toward some of the best businesses this market has to offer. And if you can grab truly wonderful companies at fair prices, something Munger has urged Warren Buffett to do in the earlier days of their multi-decade friendship, you may just be able to outdo the broader markets by a wide margin.
If you’re going to hang onto an investment for as long as possible (let’s say two or three decades), you ought to be prepared for all sorts of different “weather.”
You see, it won’t be bright every single trading day. Some days will be rainier than others. And there are some days that will be horrific blizzards. If you can prepare your portfolio in a way that fares well in the sunny days and the drizzly ones, you may be on your way to a comfortable retirement. Also, it’s never a bad idea to have a bit of cash sitting on the sidelines waiting for the hailstorms that will eventually come your way over the coming years.
In this piece, we’ll focus on two impressive Canadian stocks that would make for fine holds through all sorts of economic climates. They’re among the best stocks to buy and hang onto for years and years at a time!
Intact Financial (TSX:IFC) may very well be Canada’s best financial stock to own through thick and thin. As bank stocks slumped over the past two years, the property and casualty (P&C) insurer has quietly posted a nearly 30% gain. That’s some impressive performance that’s unlikely to come to a halt as we head into a potentially brighter 2024.
The stock trades at a lofty 35.4 times trailing price to earnings at the time of writing. With a 2.1% dividend yield and newfound momentum (shares recently hit new highs), I’d not be afraid to buy now and on any dips that appear over the coming year.
The third quarter saw Intact pull in $163 million in profits, while revenue came in at $6.9 billion. The firm says its underwriting fundamentals are improving, which could spell great things for the firm as economic conditions normalize. Either way, I think Intact is becoming a better business with time, even with macro headwinds weighing heavily on the broader economy.
Waste Connections (TSX:WCN) is another Canadian stock I’d be willing to hang onto for the long haul. The firm has posted a relatively modest 3% gain in the past two years. And though the stock has sagged modestly in recent weeks on the back of macro headwinds, I think the firm will be able to overcome them en route to better results in the new year.
At the end of the day, the firm offers a service that’s impossible for potential rivals to replicate. Indeed, the wide moat and impressive managers make WCN stock one of the best sleep-easy plays for all sorts of market conditions. At 41.3 times trailing P/E, shares aren’t cheap, but they also aren’t extremely expensive given the rock-solid cash flows you’re getting. I’d add the stock to a watchlist in case they dip lower, in which case they’d be a magnificent buy.