The Canada Revenue Agency (CRA) has set the 2021 Tax-Free Savings Account (TFSA) limit at $6,000. If you have made some good bucks doing some online job or investing in crypto, here is your chance to save that money for your future. Many young investors invested a large portion of their savings in Bitcoin and Dogecoin without understanding what they are getting into. Some have beginners’ luck, but you can’t be lucky all the time. If you made some windfall gains through meme stocks or cryptos, make these gins last longer.
Leverage the tax benefit the CRA offers on the TFSA and let your money grow passively. History shows that holding fundamental stocks is the best strategy in the stock market.
Here I will talk about three fundamentally strong stocks that are a buy and hold for 10 years. A $2,000 investment in each of them will give you strong double-digit growth.
Since last year, Descartes Systems (TSX:DSG)(NASDAQ:DSGX) has been on my buy list and it still is. Thi stock has delivered stable growth in thick and thin. It is the nature of its logistics and supply chain management business to be resilient.
With every passing year, commerce is only growing more complex. Globalization, trade war, door-to-door delivery to confidential information transit, everything is making supply chain management solutions stickier. Companies are looking to optimize operations further. Customers want flexibility in managing one trading consignment to a whole fleet. And with the economy re-opening at different levels worldwide, airlines and industrial customers are back in business.
After reporting single-digit revenue growth in 2020, Descartes returned to its normal revenue growth rate of 18% in the first quarter. Despite this, the stock surged 30% last year. It has already surged 15.7% year to date. If the stock continues to grow at its average annual rate of 20%, it can double your money in five years.
Like logistics, cars are also becoming complex. They need more than just component suppliers and assembly partners. They need automotive engineering solutions, and Magna International (TSX:MG)(NYSE:MGA) provides just that. It has adopted the TSMC model, where the company offers third-party manufacturing solutions while protecting intellectual property.
Magna is shifting from being a component supplier and partnering with auto and tech companies to offer automotive manufacturing services. Magna stock has already surged 30% year to date. It is a long-term hold as it chases the electric vehicle (EV) revolution and the autonomous vehicles (AV) dream. There will be short-term corrections in the stock, allowing you to buy the dip. But it is in a long-term uptrend with the potential to triple your money in 10 years.
The 2030 decade is also bright for telecom giant BCE (TSX:BCE)(NYSE:BCE), which is chasing the 5G dream. The 5G technology is multiple folds bigger than 4G as it will connect more…