As a young TFSA (Tax-Free Savings Account) investor, you should look to the types of investments that can really help your wealth compound, not just over a few years but over a handful of decades. Indeed, compounding doesn’t seem to make a huge difference over the short term.
However, over the long to extremely long term, it can mean the difference between a delayed retirement, an on-schedule retirement, or even an early one. The key is to get started early, stay on track, and not look to time your entries to markets based on some overly bullish or bearish chatter by a single confident pundit.
Indeed, by buying and holding the best-in-breed companies at somewhat reasonable price tags (or steals during times of great market inefficiency), you, too, have the ability to achieve stellar results over time.
Apple
Apple (NASDAQ: AAPL) is the company behind the legendary iPhone, iPad, and iMac products. Several months ago, the firm unveiled its very first mixed-reality headset (Vision Pro). Indeed, the unveiling didn’t really garner a massive amount of enthusiasm. This year has been all about generative artificial intelligence (AI). And with hype dying down on the front of mixed, virtual, and augmented reality, Apple’s Vision Pro seems more or less like a giant question mark. I have no idea if it represents the next big growth driver.
Regardless, I think TFSA investors should continue to stick by Apple stock for the long haul, as any time you try to trade it, odds are you’ll be left skating offside. The valuation may seem a bit on the loftier side, but I think 2024 will be full of surprises for one of the market’s most innovative firms.
Personally, I view Apple as one of those buy-and-forget stocks for your TFSA. It’ll have its ups (based on iPhone demand) and downs. But at the end of the day, it’s a wide-moat firm that has innovation in its veins. That alone is enough reason to give the Cupertino-based tech giant the benefit of the doubt.
Shopify
Shopify (TSX: SHOP) stock is another high flyer that really had the chance to warm up this year. At $98 and change per share, shares aren’t the same bargain they were in the last quarter of 2022. Still, I believe Shopify has plenty of projects that could help keep growth rates going strong.
The biggest jolt the firm could receive could lie in a faster-than-expected economic bounce-back. Sure, there’s some chatter of a looming recession. But I think a lot of the jitters have already been taken into account (maybe even overblown by a bit) by a rather divided Mr. Market.
Of course, Shopify stock still has a lot of expectations built in here after doubling on a year-to-date basis. Personally, I don’t think shares can double in 2024, as the easy money has already been made. That said, there may still be room for gain.
If there’s a firm that could surpass estimates, it’d be Shopify, especially as it embraces to new age of technological innovation. Personally, I’d much rather be a buyer on a pullback. However, I’m not against taking a tiny position here just to get some skin in the game.
