There are numerous top Canadian stocks that are worthy of buying and just forgetting about. Whenever you have a chance to snag a wonderful stock at a fair or wonderful price, you shouldn’t hesitate to stash it in your TFSA (Tax-Free Savings Account) for the long haul.
If it gets even cheaper after you’ve purchased it, be ready to buy more. If you’re not tempted to buy more of a stock at cheaper prices, you should really question why you’ve decided to buy in the first place. The investment legends are made by playing the long-term game. Yet beginners seem more inclined to chase quick riches with instruments like Dogecoin and Bitcoin without taking the required due diligence beforehand.
Dogecoin has made many people very rich in recent months. Did the Dogecoin people know something you didn’t when the token was trading for just pocket change? Unless they had a crystal ball handy, my guess would be probably not. Dogecoin’s rally is remarkable. There’s no question about that. However, people winning the lottery is also remarkable. The difference is, people don’t feel the urge to go YOLO (you only live once) on a token with money that can’t afford to be lost.
The temptation to bet on Dogecoin is almost palpable It’s tough to resist a shot at making a quick buck. It’s a human instinct to want a piece of an investment such as Dogecoin that’s made your friend rich. It can be tough to watch your friend, who may not know anything about investing, make a fortune off Dogecoin. They’ll probably tell you that you need to get in or that you can’t afford not to be in the asset.
Sadly, when you hear about the slew of freshly minted crypto millionaires, it’s probably too late to get in.
As Wayne Gretzky famously put it, “I skate to where the puck is going, not where it has been.”
That’s great advice for hockey players and investors alike!
Where could the puck be headed next? My guess would be not in the cryptocurrency world, which has been quite volatile in recent weeks amid various government crackdowns.
Goodfood, bad stock: Shares under considerable pressure One hyper-growth play that I think could outperform Dogecoin over the next 10 years is Goodfood Market (TSX:FOOD), a Canadian meal-kit delivery company that currently finds itself in a hangover, down 47% from its high.
Goodfood has faced the perfect storm of late. Growth stocks are being punished with two minutes in the penalty box. Unprofitable growth stocks have been dealt a five-minute major. And unprofitable growth stocks that are due to see their pandemic tailwinds fade in late 2021 have been served up a nasty 10 minutes in the box with a game misconduct.
Goodfood is in the latter camp. Despite the profound success it had enjoyed amid the worst of the pandemic, investors seem to be rushing to the exit in anticipation of some serious subscriber bleed.
I think it’s a mistake to bet against CEO Jonathan Ferrari (NYSE:RACE) or think that many consumers who’ve embraced Goodfood’s services aren’t going to stick around once it’s safe to return to the grocery store. Goodfood is an efficient operator, and it has levers it can pull to mitigate any subscriber bleed.
Don’t bet against a brilliant manager While I do think the company is in for some very tough year-over-year comparisons in its coming quarters, I think a majority of the damage is already baked in here. The stock trades at 1.5 times sales and 4.6 times book. Even if you think growth has peaked and pain is ahead, that’s still a meagre price to pay for the calibre of business you’ll be getting and the exceptional stewardship of Ferrari and company.
Goodfood is in for a doozy. But if you believe in Jonathan Ferrari, I think it’s a mistake to bet against the name, as it looks to rise to its biggest challenge to date. There are risks ahead, but between FOOD stock and Dogecoin, I’d go with the former darling every day of the week, despite the rougher road ahead.
The post A Battered High-Growth Stock I’d Buy Over Dogecoin appeared first on The Motley Fool Canada.
Fool contributor Joey Frenette has no position in any of the stocks mentioned. The Motley Fool recommends Goodfood Market.
This Article Was First Published on The Motley Fool
