What stock or combination of below offers best growth opportunity in a TFSA?

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Looking to add $10K. Considering PKI, PLC, EQB LSPD or TFII.

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Asked on August 14, 2022 7:48 pm
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If you're looking for the one that provides the most potential upside over the next half-decade here, It's hard to argue with Lightspeed right now.

Companies like PKI, PLC, EQB, TFII are more established and don't really provide that multi-bagger potential over that time period (although EQB is close). That doesn't make them poor stocks. Often with lower potential upside comes lower volatility, something a lot of investors have learned to appreciate over the last few years. And a company like Lightspeed, although it does have multi-bagger potential over the next 5 years, it also poses the most significant risk on that list, simply due to the early stage growth trajectory of the company, and the potential it could simply not work out.

If you were to tell me to order these from highest growing to lowest growing over the next 5 years, I would say this:

LSPD, EQB, PLC, PKI, TFII.

However, if you were to ask me what is the highest quality company on that list (and I like and own them all) it would be TFII. It's very important we weigh risk/rewards when it comes to our investments. Keep your allocations on high growth stocks like Lightspeed low to reduce risk of ruin, and build the bulk of your portfolio out with strong, reliable companies.

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Posted by Dan Kent
Answered on August 15, 2022 9:43 am