Bill Gates is the largest shareholder in this flagship TSX stock that Warren Buffett would love
Good old railways. These Stable Eddie ventures have provided excellent compounds to patient investors for decades. Indeed, Warren Buffett has been a major railroad buyer in the past. Proof of this is his purchase of Burlington Northern Santa Fe in the midst of the Great Recession. It turns out that one Canadian railroad does have his buddy Bill Gates as its largest shareholder. This company is Canadian National Railways (TSX: CNR) (NYSE: CNI).
This is why I believe this company is still one of the best TSX stocks for long-term investors. In addition, I highly recommend that investors with a conservative risk profile and long-term investment horizon consider these stocks as their main portfolio.
This is a reserve that requires patience and time
Bill Gates owns his huge stake in CN through his charitable foundation, which is managed by Cascadia Investments. As I mentioned earlier, the best thing for shareholders, such as trust funds, and other institutional investors, such as pension funds (who happen to own a significant share of CN), is the period to hold these problems essentially forever. Shareholder stability is key in a volatile environment. Knowing that there are long-term stockholders wanting to hold on to stocks due to short-term volatility essentially lays the foundation for those stocks that other stocks don’t have.
Indeed, CN is a company that requires long-term investment. These stocks are best suited for global leaders Bill Gates those with an investment time horizon with no expiration date. The growth that this stock provides does not happen overnight. Those looking for bitcoin-like performance won’t find them here. However, this stock is showing an abundance of defensiveness and slow and steady long-term gains.
The security that this bed provides is not cheap now
Indeed, when Warren Buffett bought BNSF, the valuation of several railways was about half that of the sector today. Of course, stocks will be hit by a significant recession. Grades are now incredibly high across the board. Railways have followed suit, setting the prices that investors have to pay today for the defenses these companies now provide at premium levels.
In this context, I think patient investors can wait to gain access to railways in times of economic uncertainty. It would be very funny. Of course, no one knows how long this central bank-led recovery will last. Interest rates are expected to be close to zero for many years, and stimulus is unlikely to end anytime soon. Those who are too impatient to wait won’t be wrong to buy these stocks today. As long as one is willing to accumulate more on downturns in the long run, CN is a stock that will continue to grow well for decades to come.