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MARKETS LIVE BLOG:

STOCKS CLIMB AS DOW POSTS 8TH STRAIGHT WIN

Fed's Michelle Bowman echoes higher-for-longer mantra for interest rates

3 Diverse Stocks to Buy and Hold for Decades

Amy Legate-Wolfe
Updated
A stock price graph showing growth over time
A stock price graph showing growth over time

When it comes to investing for your TFSA and RRSP, there’s one thing you need to have: diversity.

A diverse portfolio is a strong portfolio, but that doesn’t necessarily mean you need to buy one of every colour when it comes to different stocks. In fact, it’s likely far better to buy a few stocks that have diverse operations that will keep them strong in the long run.

After all, you’re looking for money for retirement, a new house, building a garage, or having another baby. These are important moments in your life, and you want to have the funds available and growing steadily when the day arrives that you’re ready to tackle this new adventure.

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With that in mind, I would recommend investors consider Horizons S&P/TSX 60 Index (TSX:HXT), Onex (TSX:ONEX), and VieMed Healthcare (TSX:VMD) as three perfectly diverse stocks to make up your balanced portfolio.

Horizons

If there was ever a stock you wanted to buy to help you sleep better at night, it’s Horizons. This stock differs itself from other ETFs as the one that uses an artificial intelligence program called MIND to control its choices. Rather than having analysts predicting what could happen in the future, Horizons uses data; its program continually adapts and changes to provide you with the best choices among the S&P/TSX top 60 stocks.

In the past decade, the stock has risen a strong 70%, making an investment of $10,000 worth $17,065 today. And that’s been a fairly steady upward trend with few dips along the way, and any dips haven’t been for long.

So, while the stock may be trading near an all-time high right now, I wouldn’t wait for a dip to buy this stock. If you’re out for long-term gains, Horizons offers the perfect choice to continue offering another 70% gain in the next decade.

Onex

Now if you’re looking for a strong company that is still completely undervalued, you definitely need to look at Onex. Since the Great Recession, this company has been on a remarkable upward trajectory, only coming down in July of 2017 from its all-time high. But analysts predict it’s making its way back to that $100 mark.

If you’re looking for diversity, Onex couldn’t be a better choice. The company is like buying a fund, managing and investing capital in private equity and capital platforms on behalf of investors, creating an impressively diverse portfolio.

Onex most recently hit headlines again after successfully bidding on WestJet Airlines for $2.6 billion, with billionaire CEO Gerry Schwartz finally getting a piece of Canada’s airline industry, sending shares up almost 10% in a week. This and other investments have put analysts’ predictions for the next 12 months at $90-100 per share, making some think we’re in for another few years of stratospheric rising.

VieMed

If you’re looking to invest in the future, there’s one industry that stands out as one to make some serious gains: healthcare — specifically, baby boomer healthcare.

As the baby boomers age, they are going to need more healthcare services and are going to want to have those services at home, not a hospital. That’s where VieMed comes in, providing the most advanced technology that can be brought to your home.

The way this company latches on to diversity is its diversity in products, currently expanding those services to provide the best for its clients now and in the future. Of course, better services mean better returns, and the company isn’t short on those.

The company has seen a steady increase in share price since 2017, and analysts believe that increase will continue for years to come. Since 2017, shares have gone up 219%, and analysts predict the stock will rise by 46% in the next 12 months to $14 per share.

More reading

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool owns shares of Viemed Healthcare Inc. Viemed is a recommendation of Hidden Gems Canada.

The Motley Fool’s purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool Canada’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. Motley Fool Canada 2019