Premium content from Motley Fool Stock Advisor Canada
We here at Motley Fool Stock Advisor Canada believe investors should own at least 15 stocks. Our yearly list of “Starter Stocks” is our attempt to answer a simple question: “Where do I go first?”
If you’re a new investor, we suggest you pick three Starter Stocks that interest you and use them to help build out a portfolio of at least 15 stocks. And if you’ve been investing for a while and already own some companies, we think these stocks have what it takes to strengthen any portfolio.
You should feel comfortable holding these stocks for the long haul; not only do they have the strength to ride out downturns, but they’re also built for powerful growth.
Stock Advisor “Starter Stock” Pick #1:
Constellation Software (TSX: CSU)
When it comes to naming Canada’s most successful technology companies, the list is short. And it’s safe to say, most would not place Constellation Software (TSX: CSU) on this list. After all, it’s hardly a household name.
However, the ~1,006% return that this company has generated for its investors over the past decade (as of July 2025) is the stuff that investing dreams are made of. And while we don’t expect that kind of return in the decade ahead because of the law of large numbers, the formula for success that’s driven Constellation’s growth remains in play. We expect it will prove every bit as effective as it has.
Constellation is a consolidator in the global technology industry. Buying underappreciated, niche software companies and providing them with the resources required to improve operations and grow. Capital allocation is key to this formula, and we view Constellation’s founder, Mark Leonard, and the team around him as second to none on this front.
This is a prime example of a company that one can comfortably build to a sizable allocation within their portfolio and just leave it alone. It’s to the point that the less you think about it, the better, making it a perfect fit for what we believe qualifies as a Starter Stock.
