5 Canadian Stocks to Buy and Forget + Are CPP’s Returns Actually Bad?

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The Canadian Investor 56 min 3 speakers 8 chapters transcribed 3 months ago
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What is the main topic discussed in this episode?

Braden Dennis 0:01
Investing is simple, but don't confuse that with thinking it's easy. A stock is not just a ticker. At the end of the day, you have to remember that it's a business.
Unknown 0:12
Just my reminder to people who own cyclicals, don't be surprised when there's a cycle.
Braden Dennis 0:17
If there's uncertainty in the markets, there's going to be some great opportunities for investors.
Simon Belanger 0:23
This has to be one of the biggest quarters I've seen from this company in quite some time.
Braden Dennis 0:32
Welcome back to the Canadian Investor Podcast. I'm back with Dan Kent. We have a fun episode coming up. So the first part of the episode, we'll be talking about the CPP annual report from the CPP Investment Board. So the Canada pension plan, the main takeaways, some of the questions around it. Were the returns good? How do they compare to other pension plans? So we'll be looking at that, looking at some of the fees, some of the assets and some questions that I think all Canadians should be asking about that, the CPP. And then you will go and talk about stocks that you'd like to buy and lock up in a key or stocks that you'd buy and not think about for 10 years or you wouldn't be able to touch for 10 years.
Braden Dennis 1:17
So you have five Canadian stocks that would fit the bill.
Simon Belanger 1:19
Yeah, so we had, it was probably a week ago now, I made a comment on meta and voice connections. Like, if you were to buy one and throw away the key, you couldn't look for a decade, you couldn't sell. And I think, didn't I push back on meta? Yeah, well, I said that, like, 95% of listeners would probably choose meta, and you kind of pushed back on that and said that, you know, meta could easily blow up. But there was a lot of, I had a lot of people comment about... how, you know, it's a different way of looking at things. So I thought it'd be good to come up with five companies that are kind of in the same situation. This was actually, I mean, I'll get to it in the segment, but it was actually a very hard list to only pick five.
Simon Belanger 2:00
So it'll be a good one.
Braden Dennis 2:02
Yeah, and I mean, I think it's good and it's probably a reminder that sometimes simplicity in a portfolio is just better. And I think a lot of people would probably end up doing better if they just had that mindset, right? They pick five or 10 stocks and they just leave it at that. They're companies that they'd be happy to own if they couldn't touch them for 10 years, maybe supplement that with an index fund or something like that. And oftentimes simpler is better, right? The KISS method, the keep it simple, stupid.
Simon Belanger 2:34
Not as of late because of how big the markets have ripped. But again, it's kind of a hypothetical scenario where you can't look. A lot of these AI names that a lot of people are buying, you certainly want to look because the situation is changing so much. So yeah, it'll be a good segment for some solid Canadian companies.
Braden Dennis 2:55
Yeah, and things can change quickly, right? Let's just go back to 2021, 2022. You could do no wrong owning real estate back then.

What are the main insights from the CPP Investments annual report?

Braden Dennis 3:04
Yeah. And now look at it today in a lot of regions in Canada, not every single region, but especially Ontario and BC, if you bought real estate during those peak time in 2021, 2022, a lot of people are in tough spot right now because they paid at the peak, they took on a lot of debt, and now they're looking at... almost no equity in their homes, sometimes being forced to sell. So I'm not comparing that specifically with stocks. I'm just saying that you have to be careful. Something that might look good in the moment or in the recent past might not be great longer term. So I think just important to keep in mind. Let's start off with the CPP annual report here. So CPP always makes the rounds on Twitter.
Braden Dennis 3:48
I'm not sure if you've noticed that. Oh, yes. People get very passionate about criticizing CPP.

How does CPP's 7.8% return compare to other pension plans?

Braden Dennis 3:54
And I had a tweet or a post that ended up getting a decent amount of traction. I mean, I wasn't defending CPP or anything, but I think some people were just... having some pretty bad takes here to say the least. So CPP Investment Board came out with its annual report, which I just said.

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