Warren Buffett once said that what takes a lifetime to build takes 5 minutes to screw up… but learn to invest like him and maybe you’ll avoid this path too. Some people think that to be a good trader you must buy and sell at a frantic pace every day. those people are what I like to call – evil. The best investors not only in North America but around the world know that the long term is the theme of success.
The first thing you do when you want to invest is find a company that you know and understand. If you generally can’t explain the use and purpose of a company’s products, it’s probably a company that won’t last. You brush your teeth, invest in Colgate Palmolive. Use everyday cosmetics and health products: invest in Johnson and Johnson. You drink a cold soda: invest in that brand of drink. The companies I just mentioned need no introduction, but when I mention Canadian companies I will give a general history.
The advantage of stocks is not only that since it is a well-established company, it will grow, but that stocks pay dividends unlike savings accounts and casino gambling. Look at a company’s dividend history just before you buy stock. The largest banks in North America typically pay dividends over several decades while steadily increasing yields. Now here’s the most important point: always sign up for DRIP. DRIPs mean that your dividends are reinvested. A 20-year-old who makes a $5,000 stock purchase will earn an additional $600,000 in retirement: do the math.
Since Canadian companies have not been mentioned here, there are three Canadian stocks that should be in your portfolio.
SNB.to
The Bank of Nova Scotia serves more than 21 million customers in more than 50 countries around the world and has a wide range of products and services including normal, commercial, business and commercial. The surge in consumer lending was fueled by Scotiabank’s $3bn acquisition of ING Direct Canada this year, which boosted lending and added about 2 million customers.
RY.a
Royal Bank of Canada began in the 1860s in East Halifax. It is the largest financial institution in Canada. RBC is known as the largest Canadian company by sales by a major newspaper and was named a top contender in Forbes magazine. They have steadily increased their dividend over the last century.
In BA
Enbridge has the world’s largest pipeline system, which is located in North American countries. Enbridge’s solar power efforts are the largest and contender in the wind power market. Renewable energy production is constantly growing for enbridge.