Ryan Vanzo: Fairfax Financial
My top stock for 2021 is
Fairfax Financial (TSX:FFH). The upcoming 12 months could turn volatile, and this stock is a great place to ride out the storm.
Founded by Prem Watsa considered by many to be the Warren Buffett of Canada Fairfax stock has a proven record of growth, even during turbulent markets. In 2008 and 2009, when global markets were plunging, shares actually
grew in value.
The current bull run has left a lot of value stocks behind, Fairfax included. Shares now trade at a huge discount to their historical average, prompting Watsa to commence a major buyback program. Cheap shares and proven resilience make this an attractive stock for 2021.
The continued strength in green energy stocks was nothing short of remarkable in 2020.
With a green-friendly Joe Biden ready to take to the Oval Office for the next four years, I think it’d be wise for investors to punch their ticket to some of their favourite renewable energy plays before the broader basket continues soaring higher. I don’t think the momentum in the clean energy plays is about to end anytime soon and think that favourable policy changes could cause a handful of them to soar to even greater heights.
In this piece, we’ll start by having a look at two cheap green energy producers that I think have favourable risk/reward profiles for value-conscious investors and then shift our focus to a speculative tech play for hungry millennial investors who are no strangers to extreme levels of volatility.
Consider investing in Brookfield Renewable Partners to capitalize on its long-term potential in a growing industry so you can align yourself with Warren Buffett’s approach.
TFSA investors have reason to celebrate in 2021: We've got $6,000 more to contribute. Here are two top Canadian TFSA stocks with explosive trends behind them.
Image source: Getty Images
The technology and renewable energy sectors didn’t let a global pandemic slow them down in 2020. Both sectors saw a surge in performance as investors are becoming increasingly bullish on the growth potential.
Of the two sectors, most investors would likely argue that technology had a better year than renewable energy. Canadians witnessed an impressive amount of tech stocks turn into multi-baggers in a span of less than a year.
It’s possible that the rise in tech last year caused significant changes to your portfolio’s sector allocation. After the strong bull run in 2020, tech stocks may now make up a larger percentage of your portfolio than you’d like. That’s definitely not the worst problem in the world to have, but nonetheless, it will likely still need to be addressed.