Blue Jays fan here — like, actually a fan and not some bandwagoner. The likely reason? I was three years old when the Jays won the World Series and four when they won it yet again. That kind of early influence sets you up for life.
But now is a very different time. When the Toronto Blue Jays last won the World Series in 1993, Canada’s economy was just climbing out of a tough recession, the digital era hadn’t yet transformed trading floors, and the index was dominated by banks, energy, and some telecom. So, let’s take a look back and see what today’s investor can learn from the past.
Back in time
In October 1993, when Joe Carter hit that famous walk-off home run to win the World Series, the TSX sat around 3,300 points. Today, it’s well above 30,000. Back then, however, investor sentiment was cautious. Canada was emerging from the early-1990s recession triggered by high interest rates, weak energy demand, and government deficits. Inflation had been tamed, but growth was still slow.
The structure of the TSX in 1993 reflected a much simpler economy. Roughly two-thirds of its market capitalization came from just three sectors: financials, energy, and materials. The Big Five banks already anchored the index but were smaller, more domestically focused, and less globally diversified than they are now. Their combined market value was under $60 billion, compared with more than a trillion today.
Energy stocks were the next heavyweight as oil prices sat near US$18 to US$20 per barrel, less than a quarter of current levels. Investors saw Canadian oil as stable, but there was little talk of renewables or ESG (environmental, social, and governance) investing. And technology at that time? It barely registered.
Lessons learned
In terms of performance, the early 1990s were a recovery period. After peaking in 1989 and then falling sharply during the 1990-1991 recession, the TSX began a steady climb in 1992 and 1993 along with the Blue Jays, posting gains of around 25% over those two years combined. Investors were cautiously optimistic, encouraged by falling interest rates, improving trade prospects under the newly signed NAFTA agreement (1992), and stronger U.S. demand.
In 1993, Canada’s market was dominated by banks, energy producers, and industrials. Stocks that were already paying consistent dividends back then and reinvesting those payouts through market cycles turned modest investments into small fortunes. We also saw that interest rates shape everything. In 1993, five-year guaranteed investment certificates (GIC) paid around 6% to 7%, and bond yields were high enough to attract conservative investors.
Another timeless lesson from 1993 is patience with Canadian sectors. Back then, investors grumbled that Canada was too dependent on banks, oil, and mining. Thirty years later, those same sectors still anchor the TSX and create massive, steady compounding machines. It’s easy to dismiss established industries as stale, yet these often deliver the best long-term returns precisely because they are predictable and cash-generative.
Buy RY
In 1993, Royal Bank of Canada (TSX:RY) was already Canada’s largest financial institution, though it was still very much a domestic bank. It had a growing wealth management arm, a reputation for stability, and a solid dividend history stretching back decades. Investors viewed it as boring but reliable, the kind of blue-chip you bought for income, not excitement. At the time, its dividend yield hovered near 4%, and its price-to-earnings ratio was in the low double digits.
The bank raised its dividend almost every single year. Fast-forward to 2025, and the same traits that made RY attractive then still apply. RY is Canada’s largest lender, with over $2 trillion in assets, a dominant position in domestic banking, and growing wealth management operations in the U.S. and Europe. Its return on equity regularly exceeds 16%, and it maintains one of the strongest credit ratings of any global bank. It continues to increase its dividend annually, now around $6.16 per share, yielding roughly 3%.
Foolish takeaway
The best time to have bought RY was 30 years ago. The second-best time might still be today. In a world where markets shift, technologies evolve, and hype fades, owning a company that thrives in every era is the closest thing investors get to a guaranteed win. That’s the financial equivalent of Blue Jays Joe Carter’s home run in 1993.
