In my opinion, it’s not only a good idea to invest in international stocks in a Tax-Free Savings Account (TFSA); it’s essential. Investing internationally could provide investors with more avenues for growth. In addition, depending on the stocks they hold, it could be a way to add more stability to your portfolio. Because I tend to gravitate towards growth stocks, I’m going to focus on the potential for massive growth in this article. I believe the American stock market offers companies to Canadians that we don’t have here.
In this article, I’ll discuss two stocks in my TFSA that I’m never selling.
My favourite stock in the world
Sea Limited (NYSE:SE) is the first stock that I would suggest adding to your TFSA. It should be noted that although this stock trades in the United States, it’s actually an Asian company. Headquartered in Singapore, this company operates three distinct business segments.
The first of which is Garena, its esports business. Through Garena, this company develops and publishes mobile games. Its most notable game is Free Fire, which is the most downloaded mobile game, globally. In the second quarter (Q2) of 2022, Sea Limited reported 619.3 million quarterly active users. Of those, it’s estimated that 56.1 million users are paying for in-game features. That massive user base has helped Free Fire become the highest grossing mobile game in southeast Asia and Latin America.
Sea Limited’s second business segment is Shopee. This is its online marketplace, which is known for being the largest e-commerce platform in southeast Asia. It’s estimated that Shopee serves more than 343 million monthly visitors. In terms of Sea Limited’s financials, Shopee is the major driver of growth. In Q2 2022, the company reported US$1.7 billion in revenue. That represents a 51.4% year-over-year (YoY) increase. With gross orders also growing at a fast rate (41.6% YoY), Shopee appears to be on the right track.
Finally, Sea Limited offers SeaMoney. This is the company’s digital financial services segment. Although it’s still only a very small portion of Sea Limited’s business as a whole, it’s growing at a very impressive rate. In Q2 2022, the company reported a 214.4% YoY in revenue. This growth may be attributed to a 53.3% YoY growth in quarterly active users. If SeaMoney can grow to the size of Sea Limited’s other two business segments, this stock could skyrocket over the next decade.
The largest position in my portfolio
Tesla (NASDAQ:TSLA) is the second U.S. stock in my TFSA that I would never sell. A company that needs little introduction, Tesla is well known for offering consumers with high-end electric vehicles. Its lineup currently features four vehicles, which include the Model S, 3 X, and Y. As someone who’s highly passionate about renewable energy, Tesla is a very interesting company to invest in.
In Q2 2022, Tesla reported US$16.9 billion in revenue. That represents a YoY increase of 42%. Of that, US$14.6 billion of revenue came from its automotive sales. That represents a YoY increase of 43%. What’s even more appealing about Tesla is that its profitability continues to rise as the company grows. Its operating income was $2.5 billion in Q2. As the company’s profit margin continues to widen, it should have no issues funding future growth, which is a big positive for investors.
