It’s important for all investors to diversify their portfolios. This is also true within a Tax-Free Savings Account (TFSA). By diversifying your holdings, you can provide more stability to your portfolio in the event that one country’s economy experiences a prolonged downturn. Luckily, there are outstanding companies that Canadians can invest in that trade in the U.S.
In this article, I’ll discuss two stocks trading in the U.S. that I hold in my own portfolio. I don’t see myself selling these stocks anytime soon and hope to continue buying shares in the future.
My favourite stock in the world
If I could only buy one stock for the next 10 years, it would be Sea Limited (NYSE:SE). This is a Singapore-based company which trades in the United States. Its business is divided into three segments.
The first is Garena, which develops and publishes mobile games. Garena has also sponsored large e-sports tournaments in the past and is one of the most recognized brands in that space. Sea Limited’s second business segment is Shopee. This is the company’s e-commerce marketplace. It’s estimated that Shopee is the largest e-commerce website in southeast Asia with more than 340 million monthly visitors. Finally, Sea Limited operates SeaMoney, which provides consumers with digital payments and financial services.
In terms of growth, Sea Limited is as good as it gets. During its latest earnings presentation, the company reported US$2.9 billion in quarterly revenue. That represents a year-over-year (YoY) increase of 64.4%. In the second quarter (Q2), the company also reported an 81.3% YoY increase in profit. This suggests that Sea Limited is becoming even more profitable, which should help fund its growth in the future.
Sea Limited’s fastest-growing business segment may be SeaMoney. In Q2, the company reported a 359.9% YoY increase in quarterly revenue within that segment. In addition, it now claims 49 million quarterly active users which represents a 78.2% YoY growth compared to Q2 last year. This is a very exciting company with strong growth potential. I think it could be an excellent stock to hold over the next decade.
I think this is the easiest stock to invest in
If you’re looking for a stock that you can buy and hold without having to worry about from quarter to quarter, then consider buying shares of Apple (NASDAQ:AAPL) stock. This company has one of the largest followings in the world. Some may even describe it as cult-like. I’m willing to bet that there are people in your close circle that use Apple products in their day-to-day lives. Many younger consumers see Apple as the leader in consumer tech and always look forward to buying the latest products.
With a market cap of about US$2.77 trillion, Apple is the largest company in the world. To put this into perspective, Apple is valued more than Microsoft and Meta Platforms combined. That’s why Apple is a company I have a hard time seeing become obsolete.
In Q3 2022, the company reported a quarterly revenue of $83 billion. This represents a 2% YoY increase. Apple may not be the amazing growth machine it once was, but there’s no denying that it’ll continue to have a significant presence in the economy over the coming decade.
