Best Canadian Foundational Stocks

As long-term investors, we must have a base of stocks in our portfolio that we intend to hold forever. Last week, we looked at the best US foundational stocks by sector. Now, it’s time to do the same for the Canadian market.

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For the benefit of first-time listeners, we quickly summarize what a foundational stock is and its role in a portfolio.
Let’s start with the technology sector. There are not as many possibilities on the Canadian side. Why did Mike pick Constellation Software (CSU.TO)?
Mike skipped the healthcare sector for the Canadian Market and Vero couldn’t find any idea to challenge him. How would Mike explain the lack of options for Canadians?
In real estate, Mike’s foundational stocks would be Granite REIT (GRT.UN.TO) and CT REIT (CRT.UN.TO). What still makes them among core holdings despite a difficult environment?
While Mike skipped the material sector on the US side, he has three Canadian suggestions: Stella-Jones (SJ.TO), CCL Industries (CCL.B.TO), and Franco-Nevada (FNV.TO). Why are things better in Canada for this sector?
Telcos are hurting these days. Still, Mike is sleeping well with Telus (T.TO) as a core holding. What makes the company a good contender for the next decades?
Mike selected Canadian Natural Resources (CNQ) and Imperial Oil (IMO.TO) in the energy sector. Does he still have mixed feelings about them, as was the case for Exxon Mobil (XOM) last week?
Is CNQ a foundational position in Mike’s portfolio or just a simple exposure to the energy sector?
The financial sector has been great for Canadian investors for decades, mainly because of banks. Mike put National Bank (NA.TO), Royal Bank (RY.TO), Great-West Lifeco (GWO.TO), SunLife Financial (SLF.TO), and Brookfield Corporation (BN.TO) on the list of the best foundational stocks. Why are they so solid?
The danger with Canadian financials is often to buy too many of them. Mike explains how diworsification can hurt your portfolio.
The industrial sector is not to be left aside with Canadian National Railway (CNR.TO), TFI International (TFII.TO), and Waste Connections (WCN.TO). How do they make great foundational stocks?
Vero is a happy shareholder of the companies selected in the Consumer Staples sector: Alimentation Couche-Tard (ATD.TO) and Metro (MRU.TO). What makes them good options for a long-term investment?
In the Consumer Discretionary, Mike only selected one company: Dollarama (DOL.TO). Why this one?
Vero challenges Mike on this one: “ If you selected CT REIT in the reit sector and told me it was a great foundational stock despite its connection with Canadian Tire, why not pick CTC.A.TO in this sector?”
Last sector, but not the least: Utilities. Again, the Canadian market is known for having some of the best with Fortis, Brookfield Infrastructure (BIPC), and Brookfield Renewables (BEPC). What can they bring to one’s portfolio?
One more question before going. How many stocks should investors hold as “foundational” ones, and when should a stock lose such identity?