Before you read any further, let me be clear: putting your entire portfolio into a single stock – no matter how fundamentally sound or how much conviction you have – is generally a bad idea. Diversification is the only free lunch in investing.
That said, if I were forced to pick just one Canadian stock to buy and hold forever, my choice would be the unassuming yet powerful George Weston (TSX:WN). It’s a name that rarely makes headlines, but here’s why I think it’s the ultimate “sleep well at night” investment.
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It’s a holding company
Some companies diversify by doing a wide range of things, while others diversify by owning a range of things. That’s the difference between an operating company and a holding company.
Operating companies focus on producing goods or services directly, like running factories or selling products. Holding companies, on the other hand, own controlling stakes in other businesses, earning returns from their investments without getting directly involved in operations.
George Weston is a textbook example of the latter. It holds two major assets: Loblaw (TSX:L), Canada’s largest grocery and pharmacy chain, and Choice Properties REIT (TSX:CHP.UN), which owns the real estate underpinning many of Loblaw’s locations.
In one stock, you get exposure to two essential sectors: consumer staples and real estate. That means you’re investing in a vast network of stores and brands that dominate Canadian households, including Real Canadian Superstore, Shoppers Drug Mart, President’s Choice, No Name, Fortinos, and No Frills.
You’re investing with the “old money”
If there’s one thing Canada’s uber-rich excel at, it’s looking out for their own interests. So, why not align yourself with and benefit alongside them? George Weston is practically a case study in generational wealth preservation and cronyism.
Dating back to 1882, George Weston remains majority-owned by Wittington Investments, the holding company controlled by the Weston family. These are the same folks who’ve quietly dominated Canadian grocery aisles for decades while amassing immense wealth.
Let’s be honest – every time your grocery bill seems absurdly high, part of that cash is padding the Westons’ bottom line. Why not hop into bed with the same stock that’s been fueling their empire? If you can’t beat them, at least profit from them.
It’s less volatile than the market
If I’m putting all my eggs in one basket, I’m making sure that basket doesn’t swing wildly every time the market has a bad day. George Weston does this exceptionally well, with a five-year average beta of just 0.42.
What does this mean for you as a shareholder? On average, if the market drops by 1%, George Weston’s stock tends to drop by only 0.42%. Conversely, its gains are similarly muted.
This lower sensitivity to market movements makes it a steadier choice for anyone looking to weather volatility while still participating in long-term growth.
