It has been several weeks since the US and Israel started a war with Iran, deepening the crisis in the Middle East. Between rising escalations, talks of a cessation to hostilities, and contradicting claims regarding the conflict, the S&P/TSX Composite Index has been on a rollercoaster this year.
The performance of the benchmark index for the Canadian stock market reflects the changing investor sentiment amid all the chaos. However, seasoned investors know that times like these present valuable opportunities to shore up their investment portfolios. The most successful investors seem to be focusing on a select group of companies, and that might give you the chance to invest like them.
Yes, investing like a billionaire doesn’t mean you have to be one. By considering the bets that these investors are making, you can allocate funds to buying shares of similar stocks and align with their approaches.
Today, I will discuss three TSX stocks that seem to be on the radar for billionaire investors.
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Canadian National Railway
Canadian National Railway Ltd. (TSX:CNR) is a $91.4 billion market-capitalization giant in the North American railway industry. The company owns and operates a railway network that connects the eastern and western coasts of Canada with the US Midwest and Gulf Coast. Transporting millions of tons of natural resources, finished goods, and manufactured products through its extensive network, it is a vital company for the regional economy.
It should come as no surprise that companies offering essential services are attracting attention from the richest investors. A staple in many portfolios, CN Railway stock has a lengthy dividend-growth streak that spans over 30 years. As of this writing, it trades for $149.68 per share and pays investors $0.915 per share each quarter, translating to a 2.5% dividend yield.
Brookfield
Brookfield Corp. (TSX:BN) is a $141.4 billion market-cap global investment firm focusing on creating long-term wealth for institutions and individuals. It offers investors a one-ticket exposure to some of the most durable parts of the global economy. Its operating interests in infrastructure, private equity, real estate, renewable power; asset management arm; and wealth solutions business give it an attractive setup that makes sense to successful investors.
The company is well-positioned to benefit from its diversification because it doesn’t need a single business to carry its entire success story. The company has the size and structure to find growth wherever it is possible in global economies. This is why it can be a long-term mainstay in any self-directed investment portfolio.
Cenovus Energy
Cenovus Energy Inc. (TSX:CVE) is a $66.7 billion market-cap stock to consider investing in if you’re bullish on the Canadian energy sector. With oil supply from the Middle East interrupted amid geopolitical tensions, crude oil and gas produced in North America might become increasingly important to the regional economy. Cenovus is an integrated oil company well-positioned to leverage a shift in energy demand.
Having operations spanning upstream and downstream segments means the company can balance its revenue streams across different market cycles, letting it leverage higher and lower commodity prices. As of this writing, this energy stock trades for $36.49 per share and boasts a 2.3% dividend yield that you can lock into your portfolio today.
Foolish takeaway
While I would not call these three TSX stocks investments that can make you a millionaire overnight, the underlying businesses have what it takes to make you one eventually. These fundamentally solid businesses have what it takes to perform well today and deliver substantial returns in the long run.
Billionaires typically invest with a long investment horizon. If you have the patience and discipline, allocating some capital to these three TSX stocks and holding them in your self-directed investment portfolio might be a smart move to achieve your long-term financial goals.
