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When it comes to investing, analogies abound, and I recently experienced one firsthand.
On a recent Saturday evening, a gathering at a neighbour’s property outside of town began as many do — light conversation and whatnot. Things took a turn, however, when the host trotted out a target along with his rather expansive collection of bows and arrows.
I’m not sure I’ve shot a classic bow and arrow since I was about 10 years old, but I’ve certainly observed practitioners over the years. Frankly, I had it in my head that the mechanics at least didn’t appear overly difficult as long as one had enough strength to pull back the string, which I recall being an issue when I was 10.
With the bow in hand, though, reality hit hard, and it took me about five attempts before I could even uncross the wires in my brain that would allow the arrow to release from the string after pulling it back. And I won’t even mention where that arrow flew once I figured out that relatively simple fundamental. Suffice to say, it was a(nother) humbling experience — something that was amplified when the host stood up after we’d all had a turn and asked which target he should hit, calling his shot, if you will. Arrow after arrow flew exactly where he’d intended. With years and years (and years) of practice, he made archery indeed appear relatively easy.
All of this translates directly into the world of investing.
Out of the gate, we see big percentage-gain numbers flash before our eyes and think that attaining such gains is merely a matter of participation.
The thing is, to achieve success in this world, years and years (and years) of practice are required. And while the degree of precision that my neighbour, the party host, demonstrated with his bow is not possible in the world of investing, directionally, the message stands.
Humbling experiences lurk at every corner when it comes to investing your hard-earned savings. It’s part of the price of admission that many simply aren’t willing to pay. Like archery, there’s no such thing as an instant reward in this arena. But boy, are the long-term gains that exist ever worth paying that price. To achieve them, managing the inevitable misfires along the way is a must-have skill, with experience being the only teacher that exists.
Speaking of, inevitable hiccups are arrows that can be shot through this month’s collection of Best Buys Now, the five stocks we think are exceptional buys at this moment.
Foolishly yours,
Iain Butler
Advisor, Stock Advisor Canada
Best Buys Now #1
Stella-Jones (TSX: SJ)
Stella-Jones (TSX: SJ) is North America’s leading producer of pressure-treated wood infrastructure products (think utility poles and railway ties), and it has a growing presence in steel transmission structures. The company supplies virtually every major electrical utility and Class 1 railroad on the continent, operating across dozens of treating facilities in Canada and the United States.
The company reported Q1 2026 results early in May that seemingly disappointed the market. Revenue of CA$791 million grew 2.3% year over year — modest, but in line with the seasonally slow first-quarter pattern. The problem was profitability. Operating income fell 32% to $92 million, net income declined 35% to $60 million, and EPS of $1.10 missed the $1.25 consensus by 12%. The stock dropped nearly 11% on the day and has pulled back nicely from recent highs. That pullback is your opportunity.
The earnings miss had nothing to do with structural deterioration in the business or demand environment. Crucially, the structural backdrop for Stella-Jones is as compelling as it has ever been. U.S. electric utilities are projected to invest US$1.4 trillion in electricity infrastructure between 2025 and 2030, which is double the amount invested in the prior decade. A significant portion of that will fund the procurement and installation of new poles. Every new transmission line, every grid hardening project, every storm-damaged circuit that needs replacing … they all require poles that Stella-Jones is uniquely positioned to supply, with its continent-wide treating network, long-standing utility relationships, and decades of operational expertise.
The company is also deliberately diversifying beyond wood. Its acquisition of Rockwell expanded its footprint into steel lattice and tubular transmission structures. These are higher-margin products that serve the same utility customers who are upgrading from wood to steel for high-voltage transmission lines. The tubular pole market alone is projected to grow from US$7.2 billion in 2023 to US$11.9 billion by 2032, driven by smart grid adoption and climate resilience initiatives. Stella-Jones is positioning itself to capture a growing share of that transition while retaining its dominance in wood poles, where roughly 180 million poles across North America age out on a 25- to 40-year replacement cycle.
Railway ties provide a secondary but durable revenue base. North America’s Class 1 railroads replace millions of ties annually as part of routine track maintenance. It’s a non-discretionary, recurring replacement cycle that has supported steady sales volume for decades and provides an important counter-cyclical buffer when utility spending takes a breather.
The stock is a steal today because of a single quarter’s earnings miss. The utility pole supercycle is real, grid modernization spending is massive, and Stella-Jones has the scale, relationships, and geographic footprint to capture a disproportionate share of it all.
