2 Stocks That Could Grow Your Portfolio Over the Next Decade

If you got a decade-long time horizon, here are two top TSX stocks that could significantly grow your portfolio.

| More on:

Buying stocks for the long term is often the best investment strategy for many Canadians. Thinking like a long-term investor (rather than a trader or speculator) can be a great way to build wealth.

Great investors like Warren Buffett and Charlie Munger have made their fortunes by buying top-quality companies and holding them for decades. In fact, Mr. Buffett once thoughtfully remarked, “The stock market is designed to transfer money from the active to the patient.”

If you are interested in being patient for the next decade or more, two stocks that could significantly grow your portfolio are WSP Global (TSX:WSP) and Canadian Pacific Railway (TSX:CP)(NYSE:CP).

WSP Global stock

WSP Global is fast becoming a global leader in consulting, engineering, and design. Recently, it has pursued an acquisition streak focused on environmental consulting. In 2022 alone, it has added three large consulting businesses to its portfolio.

Environmental consulting now makes up an approximate 30% piece of its business. Given global environmental and climate change concerns, this should provide strong long-term growth.

A National Bank analyst recently noted that these acquisitions could accrete as much as 15% earnings-per-share growth in 2022 alone. This doesn’t factor in organic growth from its current operations either. The analyst increased their price target to $188 per share, which would project 18% upside from here.

WSP has a long track record of making smart, accretive acquisitions. Since 2012, it has added nearly 25 consulting firms. These significantly expanded its expertise and geographic exposure. Since its initial public offering in 2014, WSP stock has delivered a 452% (or 22% annual) total return.

This stock is not cheap (it never is), but it is one of the highest-quality consulting businesses in the world. Given strong tailwinds supporting growth and a great operational platform, I expect strong returns for many years ahead.

top stocks for your long-term portfolio

CP Rail

You may not consider a boring blue-chip stock like Canadian Pacific Railway (TSX:CP)(NYSE:CP) a growth stock. Yet it has delivered very strong historical returns. Over the past decade, it has earned shareholders a very strong 566% total return (20.8% annually).

CP has been a pioneer in driving very efficient railroads across Canada. It has used its large land assets to expand, develop, and grow its transport network. This network is set to grow significantly larger if its deal to merge with Kansas City Southern railroad gets approved by regulators.

It would be the first and only Canada-America-Mexico railroad. The deal could provide very long-term growth opportunities. Like WSP, this is not a cheap stock by any means. However, if it can deliver results like it had in the past, it could be a very good stock for long-term investors.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Robin Brown has positions in WSP GLOBAL INC. The Motley Fool recommends WSP GLOBAL INC.

More on Stocks for Beginners

TFSA (Tax free savings account) acronym on wooden cubes on the background of stacks of coins
Dividend Stocks

How to Use Your TFSA to Earn Ultimate Passive Income

If you have a TFSA, then you have the key to creating ultimate passive income. All you need is a…

Read more »

Hourglass and stock price chart
Dividend Stocks

Goeasy Stock: Is It Heading for a 52-Week High?

Goeasy stock has been edging higher, especially after another record-setting earnings report. So are 52-week highs in sight?

Read more »

bulb idea thinking
Stocks for Beginners

2 Stocks That Could Help You Get Richer in 2025

It’s time to prepare for 2025 before you leave for the holidays. Here are two stocks that could make you richer…

Read more »

Middle aged man drinks coffee
Stocks for Beginners

The Best Investment Hack Every Investor Should Know

An investment hack doesn't have to be risky, tricky, or any of those scary ideas. In fact, it can be…

Read more »

Investor reading the newspaper
Stocks for Beginners

A Better Post-Earnings Buy: Restaurant Brands or Lightspeed?

These two retail stocks have come out with earnings, but which is the clear long-term winner for investors?

Read more »

a person watches a downward arrow crash through the floor
Dividend Stocks

3 Everyday CRA Red Flags Investors Should Really Know

The CRA can be a blessing and a curse, but if you make sure to follow the rules and not…

Read more »

Train cars pass over trestle bridge in the mountains
Dividend Stocks

Canadian National Railway Stock is on Sale: Why Now is the Time to Invest

CNR stock has long been a top stock, with a solid position in a railway duopoly. But right now is…

Read more »

ETF stands for Exchange Traded Fund
Dividend Stocks

This 7.9% Dividend Stock Pays Cash Every Month

We all want dividends, and having them come out monthly is ideal! But this might be a strong choice for…

Read more »