The bull run by the Canadian stock market in 2024 came with plenty of excitement, but many investors were wary of a downward correction. Not too keen on being unnecessarily averse to risk, I took the opportunity to invest in what I thought to be solid long-term holdings.
Some investors choose to wait on the sidelines and buy when the market pulls back. While those short-term gains might be a good tactic for some, someone with a long investment horizon can be least bothered with timing the market. Yes, the market will eventually see bearish conditions. The thing is, a long-term view eliminates the worry about short-term losses.
I can see the appeal in trying to time the market, but I have a more sustainable view of investing money in the stock market. I prefer researching companies to identify high-quality investments for the long run. Companies that might be trading at a discount right now but have significant growth potential excite me. This way, it is easier for me to know where to allocate investment capital during harsh economic environments.
Considering that view, here are two companies I invested heavily in during 2024 and might continue increasing positions during this year.
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Lightspeed Commerce
Lightspeed Commerce (TSX: LSPD) is a $2.89 billion market capitalization company that provides point-of-sale and e-commerce software. Saying that seems simple, but its commerce-enabling Software as a Service (SaaS) platform gives its customers the functionality they need to engage with consumers, manage operations, accept payments, and grow their businesses.
The tech stock has been a disappointing bet for investors in recent years. As of this writing, it trades for $18.77 per share, down by almost 90% from its 2021 all-time high. Despite its stock market performance, I have full faith in the company. Lightspeed continues to see double-digit revenue growth quarter after quarter.
The company’s management is exploring options for a sale that can deliver substantial value to short-term investors. Long-term investors might want to consider it a strong bet for the increasing demand for the company’s services and massive addressable market.
Brookfield Renewable Partners
Brookfield Renewable Partners (TSX: BEP.UN) is one of Canada’s leading players in the renewable energy space, and it represents the best opportunity to gain exposure to the growing industry. Like the rest of the sector, Brookfield has seen share prices decline since early 2021. While its shares traded for lower than five years ago, it might not be a bad thing.
As of this writing, it trades for $31.50 per share but offers a massive 6.86% dividend yield that makes it an excellent investment for those interested in dividend income. Brookfield Renewable might not be the best pick for short-term investors looking for quick wealth growth. However, it seems like a stock worth owning for decades to capitalize on long-term capital gains.
Foolish takeaway
If you are looking to take advantage of high-quality companies trading at reasonable valuations for investors with a long-term view, these two can be good investments. Lightspeed offers an opportunity for short-term and long-term investors due to its focus on revolutionizing the tech space. Brookfield Renewables offers the stable backing of a massive parent company and exposure to the growing renewable energy industry.
