It is rare for an investor to focus on stock selection with the ultimate goal of holding it for life, or even for a long period of time. In the age of low (and sometimes no) commission trading platforms, it can be difficult to hold on to a stock for more than a few months.
And once the quarterly figures are known, it can of course be tempting to take action in response. If it’s been a good quarter with a bad post-earnings reaction, it can be tempting to hit the sell button, even if it means losing some money. And what if it was a disastrous quarter with a huge plunge?
Sometimes holding onto stocks or buying more shares can feel a bit reckless, even though it may be the best move to trigger a market overreaction. Finally, and perhaps the most frustrating scenario of all, a company can have a spectacular quarter and still trend lower. Arguably, these days, as valuations move to the higher end, a good quarter doesn’t necessarily mean there will be a rally. The higher the price of admission, the more it takes to move that needle.
Couche-Tard: A great basic product to own for the long term
Regardless, this is a name that I think new investors can comfortably hold for an extended period of time. While an “eternal” holding period may not be realistic, I think a multi-decade horizon is just as good, especially when dealing with a proven grower like Food Couche-Tard (TSX:ATD). Stocks have been quite disappointing lately, and the path ahead certainly feels rather overdue, especially with a relative lack of mergers and acquisitions (M&A) in the past year. Did the supermarket chain spend just a little too much time on 7 & i Holdings’s endeavor, which ultimately led nowhere?
Sure, but it’s better to put in the effort and walk away than not to do enough due diligence and pay too much for an asset that may not be all that worth it in the long run. Ultimately, what matters is synergies, not the pace of deals or the excitement factor of such deals.
Ready for more offers?
Either way, I think 2026 could be a big year for deals as rates fall and broad M&A activity looks to reach new levels. This kind of environment could indeed bode well for Couche-Tard, especially if opportunities can be found within the mid-cap scene. Of course, valuations are not exactly on the low side these days. But that doesn’t mean that synergies can’t be discovered in the corners of the market where there is pressure.
And when you think about how the convenience store world could change over the next ten to twenty years, I think it makes sense to acquire a rival, not just for the turnaround potential, but perhaps for the addition of expertise to help expand into new growth categories (think food and grocery supply chains). Investors may not be happy about a restaurant or grocery acquisition, but I think it could deliver significant long-term value as the convenience store market shifts more toward food and less toward fuel.
Moreover, it is not just deals that can help Couche-Tard make the most of the opportunities in the sector. Strategic deals and collaborations can also move the needle. All things considered, Couche-Tard is a wonderful stock to store for years or even decades. I think ATD has all the ingredients for a 2026 breakout on the table, and that has tempted me to continue adding to my position.
#wonderful #share #sell