TFSA Growth Play Scenario

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Greetings Dan/Mat,

This may be a bit of an apples to oranges comparison, but if one has $1K to deploy, which of the following in your opinion would be a better long-term growth play for a TFSA portfolio:

Magna, TD, or GoodFood?

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Asked on July 14, 2021 11:11 am
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So, I would personally eliminate TD Bank. The banks are likely to provide reliable high single digit annual returns, which are definitely nothing to scoff at but certainly not a growth play.

With Magna, if it can perform and penetrate the EV space, it can certainly provide some outsized growth. If it doesn't, it would likely fall right in line with TD Bank. mid to high single digit growth.

GoodFood is, in my opinion, in the early stages of a very young industry (food boxes, food delivery.) So if I were to pick a long term growth play, it would be that.

Of note, although GoodFood is the best growth play out of the 3, it's also the largest risk, by a longshot. Magna needs the EV exposure to provide outsized growth in my opinion, but even if it didn't, you still own one of the largest autoparts manufacturers in the world, a dividend aristocrat and overall a blue-chip company. And, TD Bank is one of the largest financial institutions in the country.

Much higher reward with FOOD over the other two, but also much higher risk. Pick the one that suits your risk tolerance and overall portfolio really.

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Posted by Dan Kent
Answered on July 15, 2021 12:18 pm