A guide to investing in Canadian stocks

Thursday, Nov 05 2015 by
9
A guide to investing in Canadian stocks

Back in 2013 Warren Buffett surprised many investors by setting his sights on Canada. He purchased shares in the Canadian oil giant, Suncor Energy Inc and by the beginning of 2015 this firm had replaced the US company, ExxonMobil, as Buffett’s largest energy holding. He also bought a sizable stake in Restaurant Brands International - the Canadian fast food company which owns Burger King. The Oracle of Omaha is not the only one who sees Canada as a good place to invest. The Economist’s Business Environment Rankings have consistently placed Canada amongst the most investor-friendly countries in the world. Many readers will therefore be pleased to learn that we will be providing in depth analysis on Canadian stocks as we go forward. We’ve put together this guide to give an overview of the reasons for investing in Canada and also explain how investors can get involved.

Why invest in Canada?

Dynamic Resources Sector

Canada is richly endowed with natural resources. Bitumen -which can be upgraded to synthetic crude oil- is found in abundance in the country’s oil sands. Indeed, Canada has the largest oil reserves in the world after Saudi Arabia and is currently the fifth largest producer of crude oil and gas. However, it wasn’t always that way. After the second world war the skeptics believed Canada's oil sands would never be developed commercially. One of the companies which proved them wrong was Great Canadian Oil Sands Limited (which later merged with Suncor Energy). During the 1960s the company acted as a pioneer in Canada’s petroleum industry when it received government approval to operate plants in Fort McMurray. Over the decades the firm has grown into the fifth largest energy company in North America. Another major energy company based in Canada is TransCanada. It generates enough electricity to power 11 million homes and in 2014 it delivered 20% of the natural gas consumed in North America. Both of these giants trade on the Toronto Stock Exchange. Beyond energy, Canada ranks among the top-three global producers of softwood lumber and wood pulp, and a leading producer of potash, newsprint and platinum group metals. A number of publicly traded Canadian companies benefit from this. For example Canfor and Interfor are both amongst the largest lumber producers in the world.

international_canada_production.png

Vigorous Banking Industry

Canada has a vibrant financial sector. The World Economic Forum’s global…

Unlock this article instantly by logging into your account

Don’t have an account? Register for free and we’ll get out your way

Disclaimer:  

As per our Terms of Use, Stockopedia is a financial news & data site, discussion forum and content aggregator. Our site should be used for educational & informational purposes only. We do not provide investment advice, recommendations or views as to whether an investment or strategy is suited to the investment needs of a specific individual. You should make your own decisions and seek independent professional advice before doing so. Remember: Shares can go down as well as up. Past performance is not a guide to future performance & investors may not get back the amount invested.


Do you like this Post?
Yes
No
9 thumbs up
0 thumbs down
Share this post with friends




4 Comments on this Article show/hide all

AlanJenkins2 5th Nov '15 1 of 4

Any news on when Stockopedia will cover Canada ?

| Link | Share
globetrotter 6th Nov '15 2 of 4
1

It is ridiculous for SP to publish this article and still yet -- after all the promises on this or that -- not have Canadian stocks on the platform. I've just paid my second year on SP and am getting fed up with the promises of jam tomorrow. The 'planned dates' keep getting lengthened and it is starting to contravene legislation.

There are more things I could say, but for now c'mon Ed!

| Link | Share | 1 reply
Edward Croft 6th Nov '15 3 of 4
2

In reply to globetrotter, post #2

Hi Globetrotter. I don't think we've ever made any promises or planned dates on Canadian data? I've certainly not. We're working on Canada, Australia, India, Japan, Singapore, Hong Kong and South Africa at the moment. But I won't be committed to a shipment date as I've made that mistake before with the SmartMoney product. It's better to underpromise and overdeliver !

All I can say is that we've got plans for Level II, Smart Money, more international data, funds and more goodies that I can't disclose. But I won't commit to dates... we're rebuilding the whole platform to support all this excitement, and it's a massive project.

Blog: Follow @edcroft on Twitter
| Link | Share
Richard Seldon 6th Nov '15 4 of 4

The Top Canadian stocks could surely be included fairly cheaply?

| Link | Share

What's your view on this article? Log In to Comment Now

You can track all @StockoChat comments via Twitter


About Alex Naamani

Alex Naamani

I work as a Financial Analyst at Stockopedia.  As well as contributing to regular site editorial, ebooks and guides - my research contributes to our growing financial databases and product development.  The goal is always to help private investors manage their own portfolios and beat the market in the process.  I have passed the CFA level 1 exam. more »

Follow


Stock Picking Tutorial Centre



Let’s get you setup so you get the most out of our service
Done, Let's add some stocks
Brilliant - You've created a folio! Now let's add some stocks to it.

  • Apple (AAPL)

  • Shell (RDSA)

  • Twitter (TWTR)

  • Volkswagon AG (VOK)

  • McDonalds (MCD)

  • Vodafone (VOD)

  • Barratt Homes (BDEV)

  • Microsoft (MSFT)

  • Tesco (TSCO)
Save and show me my analysis