Did you know that the Canadian markets have acquired a fanbase among some fairly prominent global investors – including billionaires outside of our own country?
It’s not well known, but it’s true.
Canadian markets typically offer wide economic moats, international exposure, and unmatched investor wealth protection. On top of that, some Canadian companies – especially in finance and energy – are big players worldwide, meaning the country’s size is no limit to growth.
Serious investors around the world know all of the above. Warren Buffett – despite not owning any Canadian stocks currently – has invested in the country several times. Many other billionaires are invested in Canada right now. In this article, I’ll explore three stocks that are currently owned by billionaire investors all over the world.
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Brookfield Corp
Brookfield Corp (TSX: BN) is perhaps the all-time favourite Canadian stock among billionaires. Having been owned at various points by Bill Ackman, Lou Simpson, Chuck Akre, Howard Marks, and Mohnish Pabrai, it is currently a top holding of Pershing Square Capital.
The praise Brookfield has received from top investors could fill a book.
Howard Marks, who has a 19% compounded annual (CAGR) career track record, called out the company’s stellar reputation, later selling his own company to it and joining its board.
Mohnish Pabrai has said that Brookfield has the “best asset management DNA” out of its peer group.
Bill Ackman’s team has talked about the great experiences they’ve had working with Brookfield on deals in the past.
It’s no wonder that Brookfield has attracted such high praise. The company’s asset management arm raises tens of billions a year for its investment funds; its infrastructure arm supplies clean power to the biggest U.S. technology companies; and its insurance arm is growing rapidly. It’s a real winner of a stock, having outperformed the S&P 500 over a very long timeframe.
CN Railway
The Canadian National Railway (TSX: CNR) is a Canadian rail stock that is owned by the Bill & Melinda Gates Foundation. It is a fairly strong company, with only one real competitor in Canada and a massive rail network that touches three North American coasts. The company ships $250 billion worth of goods around the continent each and every year, making it an economically indispensable part of the North American economy.
CN Rail hasn’t been doing well in terms of growth lately. Its revenue grew just 0.5% in the trailing 12-month (TTM) period, and its earnings just 6.3%. It looks like Trump’s tariffs could be part of what’s been harming CNR, as the company ships cars to the U.S. – though said tariffs are in legal limbo right now. Things could improve. In the meantime, CNR is still ultra-profitable, with a 56% gross margin, 27% net margin, and 15% free cash flow [FCF] margin.
Restaurant Brands International
Restaurant Brands International (TSX: QSR) is a Canadian-American fast food company owned by Bill Ackman, previously mentioned in the section on Brookfield Corp, and also briefly owned by Warren Buffett.
QSR owns some of the best fast food brands in the world, including Tim Hortons, Burger King, and Popeye’s. The restaurants have been doing pretty well lately, with revenue up 9% and earnings up 6% in the TTM period. The company is also very profitable with a 17% FCF margin. I don’t own QSR, but I’d be content to own it.
