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3 Ways Canadians Can Invest Like ‘The Canadian Warren Buffett’

Alex Smith

Alex Smith

2 weeks ago

5 min read 👁 9 views
3 Ways Canadians Can Invest Like ‘The Canadian Warren Buffett’

Although Warren Buffett recently retired as CEO of Berkshire Hathaway, the core idea behind his success remains simple and evergreen yet powerful. Own businesses that people rely on every single day and hold them long enough for the results to show up. That idea translates well to Canada’s stock market, where regulated utilities and energy infrastructure companies play a vital role in the economy.

Such large businesses may not be very popular among new investors, but they tend to produce stable earnings and steady dividends. For investors trying to build income and long-term wealth, that combination can be hard to ignore. In this article, I’ll talk about three ways you can invest like “the Canadian Warren Buffett” with his proven approach.

Own essential infrastructure that keeps cash flowing

One Buffett-style approach could be owning assets that remain essential through every market cycle, like Enbridge (TSX:ENB). The company runs one of the largest energy infrastructure networks in North America, transporting oil, natural gas, and renewable power across key markets.

ENB stock currently trades at $66.05 per share with a market cap of $144 billion. At this market price, it offers an attractive 5.9% annualized dividend yield.

In the third quarter of 2025, Enbridge reported adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of $4.3 billion, slightly higher YoY (year-over-year), backed by strong system utilization and favourable contracting. For the quarter, its distributable cash flow came in at $2.6 billion, matching last year’s level despite higher financing costs. More importantly, the company remains on track to achieve its full-year 2025 guidance.

Recently, Enbridge also sanctioned about $3 billion of new projects and now has a secured growth backlog of roughly $35 billion through 2030. These long-term, contracted projects make this dividend-paying giant’s cash flows largely predictable.

Focus on regulated growth with clear dividend visibility

Another hallmark of Buffett-style investing is favouring regulated businesses with visible growth paths, which makes Fortis (TSX:FTS) a great example. The company mainly operates regulated electric and gas utilities across Canada, the U.S., and the Caribbean.

After surging nearly 19% over the last year, FTS stock now trades at $72.90 per share with a market cap of nearly $37 billion. Currently, the stock has a 3.5% annualized dividend yield.

In the third quarter last year, the company’s adjusted net earnings improved to $0.87 per share from $0.85 last year with the help of rate base expansion across its utilities and favourable currency movements.

By selling non-core assets in 2025, Fortis strengthened its balance sheet and improved funding flexibility. This disciplined focus on regulated growth and dividends reflects the company’s focus on patience and consistency, which are central to Buffett’s long-term approach.

Stay patient during regulated transitions

Buffett has often shown patience during business transitions when the underlying assets remain strong, a principle that currently applies to Algonquin Power & Utilities (TSX:AQN).

Following a 37% run over the last year, its stock trades at $8.74 per share with a market cap of $6.7 billion. AQN offers a 4.1% annualized dividend yield at this market price.

Notably, Algonquin is repositioning itself as a pure-play regulated utility. In the September 2025 quarter, the company’s net earnings climbed 49% YoY. Its regulated services group delivered a 61% YoY increase in quarterly net earnings, supported by approved rate implementations, favourable weather in certain regions, lower operating expenses, and reduced interest costs after debt repayment.

While Algonquin remains in transition, its regulated foundation and improving results highlight how patience can matter when following a Buffett-style mindset.

The post 3 Ways Canadians Can Invest Like ‘The Canadian Warren Buffett’ appeared first on The Motley Fool Canada.

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Fool contributor Jitendra Parashar has positions in Enbridge. The Motley Fool recommends Enbridge and Fortis. The Motley Fool has a disclosure policy.

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