There’s never a bad time for a patient, long-term investor to be putting money to work in the Canadian stock market. Short-term investors, however, may want to pick their spots more wisely. But for investors who have decades of time in front of them, there’s no sense in trying to time the market.
With the Canadian stock market as hot as it is right now, short-term investors understandably may opt to wait on the sidelines for a pullback before they start buying again. The S&P/TSX Composite Index is up more than 20% on the year, and the index is not showing many signs of slowing down.
Fortunately, there are companies on the TSX that you can feel good about buying, regardless of how the broader market is doing.
I’ve put together a well-diversified basket of three Canadian companies that are poised to continue rewarding their shareholders for years to come. There’s no escaping the possibility of these three stocks being hit with a pullback in the near term. However, over the long term, these are three companies that you don’t need to think twice about when adding to your position.
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Descartes Systems
The tech sector has been one of the hottest areas of the stock market in 2024. And with many of those high-flying tech stocks trading at all-time highs today, prospective tech investors should be aware of what they are getting into.
While tech stocks can provide loads of market-beating growth potential, that can come with volatility, which is why patience is essential for growth investors.
Descartes Systems (TSX: DSG) has been a consistent market-beater for the past two decades. Shares have returned a whopping 50% in 2024, surging to new all-time highs seemingly every month this year.
If you’re looking to grow your wealth, this tech company should be on your radar.
goeasy
goeasy (TSX: GSY) may not be a tech stock, but when it comes to market-beating growth, it can compete with the best of them.
Shares of goeasy are up close to 150% over the past five years. In comparison, the broader Canadian stock market has returned 50%, excluding dividends.
The consumer-facing financial services provider is also trading at a bargain price today. The high-interest rate environment is largely to blame for the growth stock, which is trading at a discount of 20% from all-time highs. But with interest rate cuts underway, goeasy’s share price has been clearly gaining momentum as of late.
Don’t miss your chance to load up on a market-beating growth stock that rarely goes on sale.
Brookfield Infrastructure Partners
Balance and diversification are two key characteristics that should not be overlooked when building an investment portfolio.
While Descartes Systems and goeasy can drive market-beating returns, they’re also very susceptible to volatility. Investors who are loading up on growth stocks would also be wise to own a few slow-growing, dependable companies. Utility stocks are a perfect way to do that.
I won’t try to make the case that owning Brookfield Infrastructure Partners (TSX: BIP.UN) will be all that exciting. The company can, however, provide an investment portfolio with plenty of defensiveness, dependability, and passive income.
If you’re looking to dial back the risk in your portfolio, Brookfield Infrastructure Partners should be at the top of your watch list.
