Speaking of his firm’s investment philosophy, Warren Buffett said, “Our preferred holding period is forever. When Buffett buys a stock, he does so, expecting it to continue to grow and perform well for decades to come, giving him no reason to sell the stock.
And while you may want to own these companies for the long haul, sometimes there are things that can cause you to sell early.
The best Canadian stocks to hold for the long term, however, are core businesses that can fuel your portfolio. You want to look for companies that will continue to grow and expand their businesses, while being robust enough to withstand market and economic downturns.
Over time, through the ups and downs of the market, these basic stocks will ensure that your capital is not only protected, but also growing steadily.
And often, those core Canadian stocks will pay an attractive dividend that will only help your portfolio build up even faster.
So without further ado, here are two Canadian stocks that I don’t think I will ever sell.
One of the best Canadian telecom stocks
One of the best companies you can buy that you probably never have to sell are telecommunications stocks. that’s why ECB (TSX: BCE) (NYSE: BCE) is one of my biggest holdings that I don’t think I will ever get rid of.
In the past, telecommunications were important, but it was more of a discretionary service, especially for consumers. Today, however, the telecommunications industry is crucial to today’s economy.
And with continued innovation, most recently with the introduction of 5G technology, stocks like BCE continue to find new ways to constantly expand their operations.
Also, 30 years ago BCE would have been a solid long-term investment, and in 30 years I expect the stock to continue to be a significant company in the Canadian economy.
Plus, with all the cash flow it generates, it is constantly increasing its payouts to investors. So in addition to the 5.6% return you can earn by buying the stock today, you know the income will continue to grow over the years.
A leading utility and renewable energy company
Another high quality Canadian stock that I don’t think will ever sell is Algonquin energy and Utilities (TSX: AQN) (NYSE: AQN).
Algonquin is another very stable dividend stock that is constantly increasing its payouts to investors. The company has a portfolio of gas, water and electric utility companies in several states.
Utility stocks are well known to be very defensive, which is one of the main reasons you can have confidence in holding Algonquin for the long term. And they’re not only defensive, but they’ll also be there forever, making them ideal stocks to buy for the core of your portfolio.
Algonquin, however, also has an exciting portfolio of renewable energy assets. These not only help diversify the business, but also offer tremendous growth potential as the world has for decades pursued a transition to cleaner energy.
It is this combination of stability and long-term growth potential that makes Algonquin one of the best Canadian stocks to hold for the long term. Therefore, this is a stock that I never see myself selling.
Fool contributor Daniel Da Costa owns shares of ALGONQUIN POWER AND UTILITIES CORP. and BCE INC. The Motley Fool has no position in the stocks mentioned.