TFSA Investors: 10 Stocks Every Canadian Should Own in 2023 [PREMIUM PICKS]

Motley Fool Stock Advisor’s yearly list of “Starter Stocks” is our attempt to answer a simple question: “Where do I go first?”

| More on:
runner ties shoe while stopped on grass outside

Source: Getty Images

Premium content from Motley Fool Stock Advisor

Hello!

To truly succeed in the stock market, my colleagues and I at Motley Fool Stock Advisor believe you should own at least 15 stocks.

So where should you start?

Our yearly list of “Starter Stocks” is our attempt to answer that.

If you’re new to investing and want to start building wealth in your TFSA, we suggest buying three Starter Stocks that interest you and then purchasing more companies when you’re ready.

You should feel comfortable owning any of our recommended Starter Stocks for the long haul; not only do they have the strength to ride out a wobbly economy, but they’re also built for growth!

Stock Advisor “Starter Stock” Pick #1:

Constellation Software (TSX:CSU)

When it comes to naming Canada’s most successful technology companies, the list tends to be pretty short. And safe to say, most would not place Constellation Software (TSX:CSU) on this list. After all, it’s hardly a household name.

However … the 2,000% return that this company has generated for its investors over the past decade (as of December 2022) is the stuff that investing dreams are made of.

And while we don’t expect that kind of return in the decade ahead because of the law of large numbers, the formula for success that’s driven Constellation’s growth remains in play. We expect it will prove every bit as effective as it has.

Constellation is a consolidator in the global technology industry. It buys underappreciated, niche software companies and provides them resources to improve operations and grow. Capital allocation is key to this formula, and we view Constellation’s founder, Mark Leonard, and the team around him as second to none on this front.

This is a prime example of a company that you can put a sizable portion of your investing funds into and then just leave alone. To the point that, the less you think about it, the better! Thus making Constellation Software a perfect fit for a Motley Fool Stock Advisor Starter Stock.

“Starter Stock” Pick #2

Redacted

Want all 10 Stock Advisor Starter Stocks? Enter your email address!

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.

The Motley Fool recommends Constellation Software. The Motley Fool has a disclosure policy.

More on Stocks for Beginners

oil and natural gas
Energy Stocks

The Best Energy Stock to Invest $200 in Right Now

This energy stock isn't going anywhere anytime soon, which is what makes it such a solid investment, especially for dividend…

Read more »

The virtual button with the letters AI in a circle hovering above a keyboard, about to be clicked by a cursor.
Tech Stocks

How to Invest in Canadian AI Stocks for Long-Term Gains

AI stocks don't have to be scary, risky, or any of that. In fact, these stocks are proving to be…

Read more »

space ship model takes off
Stocks for Beginners

3 Stocks That Could Turn $1,000 Into $5,000 by 2030 

Is there a way to grow your money fivefold in five years? Such returns need you to buy the dip…

Read more »

A plant grows from coins.
Stocks for Beginners

2 Growth Stocks Canadian Investors Should Watch in 2025

Long-term growth investors may not want to miss any buying opportunity in these two top Canadian growth stocks in 2025.

Read more »

stock research, analyze data
Stocks for Beginners

Two TSX Stocks With Major Rebound Potential in 2025

Here are the key reasons why these two fundamentally strong TSX stocks could recover in 2025.

Read more »

3 colorful arrows racing straight up on a black background.
Stocks for Beginners

Unsung Heroes: Little-Known Canadian Stocks That Soared in 2024

Forget the all-star Canadian stocks everyone has already heard of. These have quietly climbed and are still a steal.

Read more »

A worker gives a business presentation.
Stocks for Beginners

2 Soaring Stocks to Hold for the Next 20 Years

The strong long-term growth prospects of these two rallying Canadian stocks make them worth holding for at least the next…

Read more »

Start line on the highway
Dividend Stocks

Want Decades of Passive Income? 2 Stocks to Buy Now and Hold Forever

These two dividend stocks offer everything you need: passive income that's risen every year for over 27 years and consistency…

Read more »