Canadian (and U.S.) stocks are off to a great start this December, with the TSX Index surging more than 1% last Friday, the first trading day of the month. Indeed, the TSX Index, now up over 9% from October 2023 lows, seems to be a freight train rolling into the holidays, one that may prove quite difficult to stop in its tracks. Indeed, things were quite bleak, even hopeless, just over a month ago!
This goes to show how quick sentiment can turn and the dangers of buying into what everybody else on Bay Street is buying into. Sometimes, it doesn’t even take any positive news to provide immense relief to the broader basket of stocks. Once again, new investors should be all about maximizing time in the market, not timing the market.
Timing the market (riding the ups and avoiding the dips) sounds good on paper, but in practice, it’s really not practical to do on a consistent basis. Odds are, the negativity from the talking heads will keep you sidelines when it’s a stellar time to buy (like mid- to late October), even if you don’t intend on such negative commentary influencing your decisions! It’s far better to invest for the long term, with less regard for near-term fluctuations.
Without further ado, let’s check out two intriguing stocks for investors looking to play the really long game!
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Rogers Communications
Rogers Communications (TSX: RCI.B) is a telecom titan that income seekers shouldn’t sleep on right now. The stock is recovering from its multi-year slump, and it’s this recovery that could help it gain ground over some of its bigger brothers in the telecom space.
The 3.42% dividend yield looks robust and ready to grow, as Rogers continues to manage through a period of economic headwinds. Of course, lower rates are welcomed by many firms, Rogers included. Whether low rates are in the cards over the coming months remains to be seen.
Regardless, Rogers certainly stands out as a telecom winner for those looking to invest over the next +10 years.
Berkshire Hathaway
In some sad news, the legendary Berkshire Hathaway (NYSE: BRK.B) vice chair Charlie Munger passed away late last month. And while Berkshire lost an investment legend and irreplaceable business partner, I still think the company will do its best to continue operating according to the values of Warren Buffett’s right-hand man (and, of course, the Oracle of Omaha himself). In that regard, Berkshire stock still stands out as the same great core holding for investors (Canadian or American) that it’s always been.
Undoubtedly, Berkshire’s cash hoard has continued to swell in recent quarters. Though it would have been nice to have Charlie chime in on the company’s next big elephant-sized deal, Berkshire seems to be in no rush to make a deal happen if there’s not the right amount of value to be had.
As investors, we’ll all miss Charlie. And for the market newcomers, I’d encourage you to learn more about the man and his invaluable contributions to the self-guided investment community, for they will live on.
At the end of the day, Berkshire plays the long game, even when other firms struggle to. And its cash cushion is a major plus in a time of great uncertainty. With a potential recession around the corner and uncertainty on where rates head next, having cash is only prudent. In due time, the company will be able to put a good chunk of the cash to work. But until a perfect pitch is thrown its way, don’t count on Berkshire to swing.
