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Are you looking for a stock to buy and hold for 20 years?
Generally, they’re pretty hard to find. Whole indexes (i.e., index funds) are usually safe to hold for several decades because they “diversify away” so much risk that they are unlikely to deliver lifetime negative returns. It’s a different story with individual stocks. Individual stocks face both company-specific risk and market risk. For this reason, you need to do much more research to make informed investments in them. To be truly sure that an individual company will thrive for 20 years, you would need to become one of the world’s foremost experts on that company.
On the flip side, individual stocks also have company-specific sources of return, so with diligent study and some luck, you can outperform the market with well-researched individual stock picks. In this article, I will explore one TSX stock that I plan on holding for 20…
