As the new year rolls out, it’s time to share the annual investment pick contest that I run. This is the 5th year in the running. This is merely meant to be a fun experiment to run and collect top investment picks for 2020 from a community of investors I regularly interact with. There are still some great picks from the 2016, 2017, 2018 & 2019 top picks, and I invite you to check them for ideas. Remember that investing is a long game — so, focusing on short intervals like a year is not prudent — even though this contest focuses on one year return. Plenty of older picks are still good hunting grounds if you are looking for investment ideas.
The rules were simple: Pick one investment (stock, bond, fund, currency, commodity, cryptoasset or any other form of investment security), and present a short & quick investment reason behind the pick. I will track this progress over the year and provide quarterly updates on this blog.
Top Investment Picks for 2020
Before I present the picks, I would like to remind the readers that these are simply picks based on current outlook and each investor should not take this as investment advice. If you decide to pursue these investments, please do your due diligence before investing in any of the securities mentioned.
Without further ado, here are the top picks from the investing community for 2020.
416Ash: Whitecap Resources Inc (TSE: WCP)
“Beaten down sector, ~6.5% dividend, good economics, take out candidate, greater output/shipment capacity. Also like CPG.TO and OpenText”
All About the Dividends: Power Corp of Canada (TSE: POW)
“With the company announcing a structural reorganization late in 2019 that I believe will unlock value and lead to growth in 2020 investors will jump on board and the shares will head north. Also the 10% dividend increase that shareholders will receive upon completion of Power Financial’s shareholder approval is a nice bonus. :)”
Blog Reader Max: Boyd Group Income Fund (TSE: BYD)
“They are converting into a corporation which will attract a larger base of shareholder; their ROE (and most of their financial metrics) is off the chart; the management’s incentives are strongly aligned with value creation for shareholders; most of their competitors have too much debt to compete with them in the M&A space.”
Bryan (Income Surfer): Amazon.com Inc (AMZN)
“Great growth company that can turn the profit screws whenever they want, but spent much of 2019 our of favor. We want to have our full positiion established prior to Amazon having a full line of private label food.”
Brandon Van Zee / Market Scholars: Albemarle Corporation (ALB)
“25 years of dividend increases and a key lithium producer, which is important for electric vehicle batteries. With TSLA’s stock starting to rally again, it makes me wonder if ALB will go along for the ride.”
Cheesy Finance: Firm Capital Property Trust (CVE:FCD.UN)
“Small REIT with the potential for long term growth (via both acquisition and property maintenance) and a potential to be bought with a nice share price markup (as happened to me a couple of times already when buying several REIT’s. 2019 handed me nearly 70% profit with DRG.un.)”