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2 Stocks I Loaded Up on Last Year for Long-Term Wealth

Alex Smith

Alex Smith

3 hours ago

5 min read 👁 1 views
2 Stocks I Loaded Up on Last Year for Long-Term Wealth

Did you load up on stocks last year?

Personally, I made a few buys. Not as many as I did in 2024 — the markets were pricier last year — but a few. In particular, I started a new position in an oil stock, my first such buy since early 2022, and also continued buying a bank stock that I had begun accumulating in 2024. In this article, I’ll share the two stocks I loaded up on last year with an aim to establish long-term wealth.

Suncor

Suncor Energy (TSX:SU) is one stock that I bought a small amount of last year, near the beginning of the year. I wish I’d bought more, because it ended up being one of the best performers in my portfolio in the 12 months that followed.

Suncor Energy is Canada’s biggest integrated energy company. It’s involved in almost all parts of the oil and gas supply chain: exploration, production, marketing, refining, and gas stations. The only part of the energy sector that is not involved in at all is midstream. Otherwise, it’s a pretty integrated and well-diversified energy company.

Suncor’s presence at different points in the oil and gas supply chain lets it extract more profit per barrel than your average pure-play exploration and production (E&P) company does. Whereas a pure play E&P sells its oil to a buyer and leaves it at that, Suncor can refine the oil it extracts and sell it at its own gas stations. So, it should come as no surprise that Suncor is a pretty profitable company, with a 12% net margin and a 13% free cash flow (FCF) margin in the trailing 12-month period.

One desirable quality that Suncor did not have much of in the trailing 12-month period was growth. Its revenue declined 3.5% in that period, and its earnings grew only 2.75%. It wasn’t a great showing, but with today’s higher oil prices, that’s probably set to reverse.

TD Bank

Toronto-Dominion Bank (TSX:TD) is a stock position that I continued accumulating in 2025, after beginning to accumulate it in 2024. This is actually one of the longest-standing stocks in my portfolio, one dating back all the way to 2019. However, I sold my entire position early in 2024, only to start buying it again late that year, when it got extremely cheap.

Why did TD get so cheap?

It came down to regulatory issues in the United States. From 2022 to 2024, the bank was under investigation in the U.S. for anti-money laundering (AML) issues. In December of 2024, the penalties for the violation were delivered: a $430 billion asset cap (applicable only to the bank’s U.S. retail segment) and a $5 billion fine. The stock got absolutely hammered when these penalties were announced. What investors seemingly missed is that $5 billion is only a fraction of a year’s profit for TD, and the $430 billion U.S. retail asset cap still left plenty of room for growth in Canadian retail, investment banking and insurance. Seeing TD stock on sale at $74 in December of 2024, I bought a bunch of it. In 2025, I bought some more after reading that the investment bank Jeffries had recommended the stock. It became a big winner for me.

Foolish takeaway

What do my 2025 stock purchases show? Mainly, they show that in investing, slow and steady often win the race. Many people tried to get cute by buying ultra-growth stocks last year, only to get burned. My boring value stocks worked out comparatively well. There’s a lesson there.

The post 2 Stocks I Loaded Up on Last Year for Long-Term Wealth appeared first on The Motley Fool Canada.

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Fool contributor Andrew Button has positions in TD Bank and Suncor Energy. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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