Finding top TSX stocks that you can buy and confidently hold for the long haul is essential to ensuring success when investing your hard-earned money.
Not only do you want to pick the best and most consistent stocks to buy and hold long term, but when you have confidence in these investments, itâs much easier to keep your emotions in check and avoid panic selling when the stock market is in decline.
Markets will periodically decline, and these opportunities give you the chance to buy more shares at a discount rather than following most investors' natural reaction, which is to sell the shares and avoid more temporary losses.
And when you own the best companies, these businesses and their long-term potential should hardly ever be significantly impacted by a temporarily worsening economic environment or declining market.
So, with that in mind, if youâre looking for top TSX stocks you can confidently buy now and hold for years to come, here are three of the best to consider.
One of the best TSX stocks to buy and hold forever
Brookfield Asset Management (TSX:BAM) has long been one of the best and most consistent stocks on the TSX, and its consistent track record of above-average performance makes it a stock you can have confidence buying today and holding for years to come.
Brookfield is one of the largest asset managers in the world, with over $925 billion in assets under management. The company's operations include real estate, infrastructure, renewable power, private equity and more.
This diversified investment portfolio mitigates risk and ensures steady and consistent cash flow, especially with its investments in infrastructure and renewable energy, which have significant long-term growth potential due to global trends towards sustainability.
Furthermore, Brookfield has a history of strong financial performance, delivering consistent returns and growing dividends over the years. It has consistently shown an ability to navigate various economic cycles and can take advantage of poor economic environments to find new, attractive investments it believes are trading undervalued.
Plus, the stock is constantly attracting more funds from investors, which not only gives it more scale to continue growing its global portfolio of businesses but also increases its recurring revenue, as more assets under management equates to more fee-bearing income.
One of the fastest-growing stocks in Canada
Another top TSX stock you can confidently buy now and hold for years to come is goeasy (TSX:GSY), which has earned investors a more than 320% return in just the last five years.
goeasy provides alternative financial services by providing personal loans, typically for non-prime borrowers. The company has consistently demonstrated impressive revenue and earnings growth over the past decade, driven by an expanding customer base and new product offerings.
By serving non-prime borrowers, goeasyâs risk is higher, but the market is less saturated as it doesnât compete with the big banks, which is whatâs led to its impressive growth over the last decade.
Furthermore, goeasy has done an impressive job managing its risk and keeping its charge-offs manageable and within its target range, allowing the expansion of its operations to contribute directly to its rapidly improving profitability.
It's also worth noting that goeasyâs growth strategy of expanding its product range, increasing its customer base, and exploring new markets should continue to lead to more profitability in the coming years and, therefore, more growth potential, making it one of the best TSX stocks to buy now and hold for the long haul.
A top TSX utility stock
Finally, if youâre looking for an even safer investment, Iâd recommend a high-quality utility stock like Hydro One (TSX:H).
Hydro One is Ontario's largest electricity transmission and distribution provider. The company owns and operates an extensive network of transmission lines and distribution systems. In addition, as a regulated utility, Hydro One benefits from stable and predictable revenue streams.
Furthermore, by providing essential services, Hydro One has a consistent demand for electricity, making it a defensive and low-risk investment.
Plus, going forward, the TSX utility stock continues to invest in upgrading and expanding its infrastructure. Not to mention, the demand for electricity is only expected to continue increasing as we continue to transition to cleaner and more sustainable energy.
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