Farewell: 2010 – 2019
It’s time to close out this decade.
Looking back, the U.S. market performed beautifully across the board (admittedly, there were moments where I just wanted to own an S&P 500 Index fund), while the Canadian market was a choppy ride – unless you placed your bets in the right sectors at the right time (e.g. Gold/Mining this past year) or tightly held onto the Capital Compounders that we feature here regularly (e.g. CSU, DOL, ENGH, ATD.B, BYD.UN, etc.).
Of course, there were some stocks in both markets that outshone all of the others. These are the Top TSX Composite stocks, and S&P 500 stocks from the past decade.
Now we embark into this next decade. Where will you place your bets? Are there themes that you will focus on? What are your Best Ideas for 2020 and Beyond?
Best Stock Ideas for 2020
It’s the start of a new year, and new decade. For us DIY investors – this is the time to review our portfolios, and place bets for the year (and beyond). You’ll know from reading my past writings that every year I like to invest more capital into my winners – quality growth companies that continue to execute, and build shareholder wealth.
Best Canadian Stocks in 2020:
In 2019, gold stocks performed very well. For 2020, some are saying that “this is the year oil stocks come back”. As you know, I don’t invest in the resource sector, and my Canadian Best Ideas reflect that – they’re all Technology, and Services/Consumer companies that continually compound through business cycles. It’s always tough putting together a short list of best ideas – some notable mentions that didn’t make the list are Open Text, Brookfield Asset Management, and Shopify (which is now my #1 holding by weight). Lastly, it might be of interest for you to know that I added new money to this particular stock for the first time since investing in it back in 2015…Canopy Growth Corp.
Best US Stocks in 2020:
The US market has continued to perform exceedingly well since the financial crisis (2008/2009). I mentioned in a previous post that there were times I wished that I had just bought an S&P 500 Index Fund/ETF! In September 2019, I published my list of “US Compounders” for the first time ever, and expect this group to beat the market (here’s hoping). Most of the US Best Ideas for 2020 are from that list (7/10), with the other three positioned well for 2020 in my opinion. Some of you might not agree with Uber, but my intuition still tells me that this company will get bigger over time. It’s why I like to own disruptors in my portfolio. They tend to surprise…
Best Chinese Stocks in 2020:
Trump said he plans to sign the US-China phase 1 trade deal on Jan 15th. That’s after 1-2 years of back-n-forth negotiations that impacted most Chinese stocks. So perhaps 2020 will be a good year to have some exposure to China – who really knows. The 10 Chinese stocks are ones that I’m currently most comfortable with, and are mostly in the technology sector. China has a grand vision, and part of that is to grow its own mega-tech companies like Google, Facebook, and Amazon. At the moment, my portfolio is lightly weighted in Chinese stocks, ~5%. I’m dipping my toe in first. Don’t want to get burned.
Best MicroCap Stocks in 2020
You’ll recognize these stocks from the list of Future 60 MicroCaps. They’re the small companies with “big dreams” that continue to execute (so far). It’s tough out there in MicroCap land – most companies sub $100M simply won’t make it, but it’s that small group that can boost your portfolio. I couldn’t add XPEL onto the list this year as it’s no longer a MicroCap – it’s done so well. And that’s the point – finding these small companies early so you can possibly invest in 10x + baggers.
Thanks for reading,
Warm Regards, and See you in 2020!
Robin Speziale is not a registered advisor. The content in this post does not contain any financial advice or stock recommendations. It is for informational purposes only. Please conduct your own research and consult a professional. Investing involves risk and potential loss of principal.
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