As Motley Fool articles have shown, there are many excellent stocks in the Canadian stock market. However, it’s important that investors remember to diversify their portfolios. This means investing in companies that operate (and trade) internationally. Doing so could provide investors with additional avenues for growth that are not otherwise present in their home country.
In this article, I’ll discuss two stocks that trade in the U.S. that I’d never sell.
Invest in this massive company
Apple (NASDAQ:AAPL) is the first stock that I would never sell. This company is a worldwide leader when it comes to consumer tech. We can get a sense of how dominant Apple is just by looking at its iPhone products. It’s believed that the company holds a 65% share of smartphone sales in the United States. It’s also estimated that one billion iPhones are in use today. Between its iPhones, MacBooks, and streaming services, Apple maintains a consistent presence in front of consumers.
In the third quarter (Q3) 2022, Apple reported US$83 billion in revenue. That represents a modest year-over-year (YoY) increase of 2%. Although that may seem low, we could see a greater increase in the coming quarter. It’s rumoured that the company will be unveiling the iPhone 14 during today’s Apple event. Whenever the release does happen, I would expect to see consumers flocking to the new technology, helping boost Apple’s revenue in the process.
This is my favourite stock
If I could invest in only one stock, domestic or international, it would be Sea Limited (NYSE:SE). This company operates in the e-sports, e-commerce, and digital payments industries. I believe all three of those business segments present very attractive opportunities and could see massive growth over the next decade.
Of Sea Limited’s business segments, Shopee, its e-commerce division, is what attracts me the most. It’s predicted that the e-commerce industry could be much larger in a decade’s time due to younger consumers driving a shift towards online shopping. It should also be noted that Sea Limited has done an excellent job of growing its presence in the e-commerce space using Shopee. It’s already known as the largest e-commerce marketplace in southeast Asia, but Shopee has also become a bona fide competitor in North and South America and Europe.
In Q2 2022, Shopee reported US$1.7 billion in revenue. That represents a YoY increase of 51.4%. This was driven by a 41.6% YoY increase in total orders. These numbers are very impressive, in my opinion, considering how weak consumer spending has been this year.
When considering Garena (e-sports) and SeaMoney (digital payments) in addition to Shopee, Sea Limited starts to look like a no-brainer for your portfolio. Sea Limited represents one of the largest positions in my portfolio and is definitely a stock that I’d be hesitant to ever sell.
Foolish takeaway
Although the Canadian stock market offers investors with a plethora of amazing stocks, potential gains are being left off the table by not investing internationally. Companies like Apple and Sea Limited give Canadians the opportunity to invest in companies that operate types of businesses not found in Canada. These are two U.S. stocks I wouldn’t sell.
