To build real long-term wealth, new investors shouldn’t aspire to become some trading wizard, with the flexibility to get into stocks before a big run and the foresight to get out before the next inevitable downturn. It would indeed be ideal to sell at the highs and buy at the lows, but in reality it is difficult to do. And for the many new investors looking to get started, I’d say it’s a better use of time to look for really solid companies and hold their shares for life.
Nowadays, investors can get out of a stock quite quickly. And with commission costs on the descent, you can trade in or out very affordably, depending on your broker. Perhaps high commissions are indeed a good thing if they encourage you to think more deeply about an investment before purchasing. In any case, this piece will look at one of my favorite long-term stock picks for investors looking to invest for at least the next decade.
That is undoubtedly a long horizon that is not realistic for many. However, if you’re a young investor who doesn’t expect big expenses in the future, I think the following names are worth adding to a watchlist in this last quarter of 2025.
Food Couche-Tard
Food Couche-Tard (TSX:ATD) has to be one of my favorite retailers of all time. The convenience retailer has grown considerably in recent decades, partly thanks to smart deal making. But not as many deals have materialized lately, either due to regulatory hurdles or other factors. Still, I continue to believe that it is far better that a proposed deal does not go through than one that is too expensive to get the green light. Add enough sweetener to the original offering price and you risk overpaying, limiting synergies, or worse, eroding value.
Over time, Couche-Tard has proven that investors can trust it to deliver good value for their investment dollars. Still, a big problem with the name is that it’s been so long since the last big exciting deal.
Personally, I think Couche-Tard would like to focus its efforts on expanding its presence in North America, preferably through a convenience store with a “secret sauce” to grow in an environment where food, not fuel, is the key to taking things to the next level.
Inspired by food-centric convenience store rivals
There are indeed many convenience stores with cult-like followings. From American rivals like Wawa to Casey’s General Stores (NASDAQ: CASY), you really don’t have to look far for inspiration as future convenience stores become more competitive with quick-service restaurants. I’ve often commented on smaller, US-based convenience chains like Casey’s, Wawa and Sheetz. These convenience store models, I think, are changing what it means to be a convenience store in 2025. And I think Couche-Tard knows the importance of letting food do more of the heavy lifting.
In short, it is the delicious food that attracts a lot of people, perhaps even more than the convenience. And if Couche-Tard can innovate in food, I think Circle K can be a disruptive force again.
Maybe Couche-Tard doesn’t need to acquire 7&i Holdings or Casey’s (a deal with Casey’s fell through more than a decade ago) to gain an edge. No doubt management is already on the right track and I think they are just getting started. As such, I wouldn’t bet against the convenience store as it focuses on restaurant quality food.
Personally, I think their next big deal should be a chain restaurant or a convenience store that offers sophisticated food, like a Wawa, or maybe Couche-Tard will give Casey’s another look, even though the price of admission is much higher now. In some cases, it may make sense to pay for a top-notch company, not just for the stores, but also for the talent.
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