Rome wasn’t built in a day. If you want to build a portfolio that can withstand every storm and last for generations, the foundation pillars need to be strong. When building a high-rise building, 20–40% of the building cost goes toward the foundation pillars, as they bear the load. The weaker the soil condition, the wider the pillars; and the taller the building, the thicker the pillars. Here, I have used building construction as an analogy in stock portfolio construction.
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Canadian stocks that can be your TFSA cornerstones
When building a TFSA portfolio, focus on building a core portfolio that will act as a cornerstone and support your investment growth in the long term. For a core portfolio, consider resilient businesses that are too big to fail. The companies you know will thrive even in an apocalypse.
Three sectors that will never run out of business are food, logistics, and energy. Pandemic, natural disaster, war, or tariffs, you will need these three things to provide necessary supplies. And that is what makes them the cornerstones, the evergreen stocks.
Loblaw stock
In the new age, stores are the source of food and medicine. Loblaw (TSX: L) is one of Canada’s largest retailers and earns its revenue from food retail and Shoppers Drug Mart. It may see seasonality and an increase in costs. However, it never runs out of business, be it a pandemic or tariffs. Loblaw was a clear winner of the “Buy Canadian” campaign when tariffs made US imports expensive. Canadian food companies rose to the occasion, and Loblaw helped an average Canadian household manage their budget with Canadian goods.
Population growth, average age of the population, and inflation are some of the factors that drive Loblaw’s earnings. The resilience of its business is seen in the food inflation numbers. Loblaw’s internal food inflation was lower than Canada’s Consumer Price Index for Food Purchased From Stores at 4% in the second quarter of 2026. Its pharmacy business is also growing as specialty and chronic prescriptions grow.
Business as usual for Loblaw is a steady increase in same-store sales and restructuring of stores and businesses. Underperforming stores and businesses are closed or sold, and new ones are opened or acquired to earn higher revenue and earnings. This active approach of cutting underperformers leaves the business with flexibility to make better use of funds than keeping them in slow-burn businesses.
A $10,000 investment in Loblaw in late 2010 is $73,000 today, a sevenfold increase in 16 years, higher than the TSX Composite Index’s threefold growth.
Descartes Systems stock
Descartes Systems (TSX: DSG) has grown 15-fold in 16 years, converting a $10,000 investment in 2010 into $155,000. It has built a Global Logistics Network, housing all parties involved in the logistics supply chain. Unlike other logistics management software that thrives on average recurring revenue, Descartes solutions are used by large and small companies for end-to-end solutions or for a single consignment or a particular task, such as customs duty compliance or Global Trade Intelligence (GTI).
The blockade at the Strait of Hormuz is affecting trade volumes but has opened opportunities in supply chain management. Clients are looking for alternate routes to avoid Hormuz. Since fuel costs and distance increase, Descartes helps customers reduce costs by improving fleet efficiency. In the last two years, its stock price fell 35%, despite strong revenue and earnings growth as valuations corrected. The growing trade volatility will add to Descartes’ GTI, and its zero debt will strengthen its balance sheet, putting all its efforts in a positive position.
Canadian Natural Resources
Households will need natural gas to heat homes, fuel cars and planes, cook, and power data centres. For an energy export country, Canadian Natural Resources (TSX: CNQ) has strategic relevance. Its low-cost, low-maintenance oil sands reserves and strong financial discipline to maintain debt at a certain level make it a cornerstone stock that can support your portfolio. It is a must-have stock for its regular dividends and dividend growth. You can use the dividend income to reinvest in the company’s stock and earn compounding returns.
