Trading

The Investment Strategy That Doesn’t Require Watching the News

Alex Smith

Alex Smith

2 days ago

5 min read 👁 1 views
The Investment Strategy That Doesn’t Require Watching the News

Finding the right investment strategy is a great way to start (or continue) your investment journey. Maybe you want to buy your stocks and tuck them away, only to revisit them at fixed intervals. The everyday noise and market volatility might be a ride you are not willing to take.

Early in my career in investment management, I quickly realized that day-trading was not for me. And that watching the latest news every day and reacting to it was not value-adding to my portfolio or to my life. That’s why I developed a strong focus on the long term.

The building blocks of the right investment strategy

Market noise refers to information that creates short-term stock price movements or emotion, but that lacks meaningful insight. This noise is everywhere, and it happens all the time. Therefore, it might seem impossible to ignore.

However, one of the best things investors can do is to learn how to do just that. The short-term market gyrations and latest news items of the day often have little bearing on stocks in the long run. So, how do we build an investment management strategy that allows us to do this?

Secular trends are those trends that last for several years, even decades. These trends are a reflection of lasting shifts that are happening in society, the economy, or technology. Focusing on these trends means that you are taking a long-term and thoughtful approach in your investment management strategy.

There are many secular trends that are alive and well today. For example, the global trend toward natural gas as a preferred energy source is really taking hold. And it has a long growth runway that’s supported by a few things. Firstly, natural gas is a relatively cheap energy source. Secondly, global exports of natural gas and natural gas by-products are in high demand. Finally, natural gas is comparatively “cleaner” than many of its alternatives, such as coal.

Tourmaline Oil (TSX:TOU) is one of Canada’s largest and lowest-cost natural gas producers that’s benefitting from this secular trend. The ramping up of the recently opened LNG Canada facility is expected to boost natural gas demand significantly, likely boosting demand for Tourmaline’s natural gas as well as natural gas prices.

Invest in competitive advantage

A competitive advantage is something that transcends short-term market noise and fluctuations. An investment in Canada that holds a strong competitive advantage is Alimentation Couche-Tard (TSX:ATD).

This company is a leader in the convenience store sector. It has grown into a global behemoth, with over 17,200 sites and more than $72 billion in annual revenue. Running the numbers through an investment calculator, we find out that since 2006, the company has grown its pretax income at a 12.7% compound annual growth rate (CAGR).

We have seen consistent and strong growth from Couche-Tard, as the company has pursued its long-term growth plan.

Practice patience

Finally, let’s talk about patience. When you have your investment thesis that focuses on long-term trends and strong leaders, make sure you also have patience. It can be easy to get caught up in short-term noise, but stay the course.

Fortis (TSX:FTS) is an investment in Canada that has paid dividends to its shareholders. In fact, Fortis has a 52-year history of consecutive dividend increases — any investment calculator will tell you that’s wealth building. The story of Fortis is not one of quick gains; it’s one of shareholder returns that came slowly and steadily. A company like Fortis has an unbeatable place in the utility sector, providing its shareholders with stable, reliable and dependable performance. But investors had to stick around to get it.

The bottom line

Finally, to put these investment strategies into practice, investors have to have conviction and a disciplined process. Simply try to refuse to get caught up in speculation and emotion, and keep your eyes on the long term. Remember that there is always risk when investing. The trick is to diversify your investments in Canada. There are plenty of thriving industries and companies to choose from.

The post The Investment Strategy That Doesn’t Require Watching the News appeared first on The Motley Fool Canada.

Should you invest $1,000 in Fortis Inc. right now?

Before you buy stock in Fortis Inc., consider this:

The Motley Fool Canada team has identified what they believe are the top 10 TSX stocks for 2026… and Fortis Inc. wasn’t one of them. The 10 stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 … if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $21,827.88!*

Now, it’s worth noting Stock Advisor Canada’s total average return is 102%* – a market-crushing outperformance compared to 81%* for the S&P/TSX Composite Index. Don’t miss out on our top 10 stocks, available when you join our mailing list!

Get the 10 stocks instantly #start_btn6 { background: #0e6d04 none repeat scroll 0 0; color: #fff; font-size: 1.2em; font-family: 'Montserrat', sans-serif; font-weight: 600; height: auto; line-height: 1.2em; margin: 30px 0; max-width: 350px; text-align: center; width: auto; box-shadow: 0 1px 0 rgba(0, 0, 0, 0.5), 0 1px 0 #fff inset, 0 0 2px rgba(0, 0, 0, 0.2); border-radius: 5px; } #start_btn6 a { color: #fff; display: block; padding: 20px; padding-right:1em; padding-left:1em; } #start_btn6 a:hover { background: #FFE300 none repeat scroll 0 0; color: #000; } @media (max-width: 480px) { div#start_btn6 { font-size:1.1em; max-width: 320px;} } margin_bottom_5 { margin-bottom:5px; } margin_top_10 { margin-top:10px; }

* Returns as of January 15th, 2026

More reading

Fool contributor Karen Thomas has a position in Tourmaline Oil. The Motley Fool has positions in and recommends Alimentation Couche-Tard. The Motley Fool recommends Fortis and Tourmaline Oil. The Motley Fool has a disclosure policy.

Related Articles