To continue with our previous blog about Canadian Depositary Receipts (CDRs), we will now discuss some of our favourite long-term CDRs. The selection is based on the business quality over time and the long-term outlook for these companies. The list below includes our favourite Canadian Depositary Receipts (CDRs), which we may update in the next few months:

1. Google (GOOG)
GOOG possesses a tremendously valuable portfolio of assets, including search, YouTube, cloud, and Waymo. The company was recognized as a loser in Artificial Intelligence (AI) just a while ago, but sentiment has shifted completely as management executes and search revenue shows little impact from generative AI. GOOG generates strong free cash flow, has lots of cash on the balance sheet, and is currently repurchasing shares.

2. Amazon (AMZN)
AMZN can be considered one of the most durable companies within the list of the Magnificent Seven. AMZN is a leader in two business segments that have an “unbounded” addressable market — e-commerce and the cloud. AMZN strives to become the world’s largest start-up at scale and continues to reinvest heavily to grow the business.

3. Broadcom (AVGO)
AVGO quietly powers the AI innovation by providing chips for data centers, smartphones, and other connected devices. The company is a rare, highly successful serial acquirer within the semiconductor landscape. AVGO has transformed its business from a hardware-focused to an infrastructure software company with a high degree of recurring revenue.

4. Nvidia (NVDA)
NVDA is the epicenter of the AI revolution; the company’s GPUs power everything from generative language models to autonomous vehicles. With explosive demand for AI infrastructure, NVDA’s future prospects remain solid for many years to come. NVDA is undeniably one of the most profitable companies ever created.

5. Microsoft (MSFT)
One of the oldest companies on the list, MSFT has gone through multiple innovation cycles, including the Internet, mobile, cloud, and now AI. The company has proven the durability of its business model by continually reinventing itself to adapt to a changing world. MSFT is still firing on all cylinders and remains at the forefront of AI innovation.

6. Meta (META)
META owns some of the largest social media platforms globally, including Facebook, Instagram, and WhatsApp. The company started as a capital-light advertising business that generates abundant free cash flow but has also begun investing aggressively into AI and the metaverse in recent years. The company’s core social media platform remains one of the best cash machines in the tech landscape.

7. Intuitive Surgical (ISRG)
ISRG is a leader in the healthcare technology industry. The company’s da Vinci Surgical System, which enables minimally invasive surgical procedures, maintains a near-monopoly position in the industry. ISRG is a highly profitable business that generates strong free cash flow and is expected to continue growing organically at a healthy rate in the foreseeable future.

8. Coinbase (COIN)
COIN is one of the largest crypto exchanges globally. The company is expected to benefit over the long term from the continued adoption of the crypto economy. COIN sits at the center of blockchain technology. The business model can be viewed as a “royalty collector” on the adoption of digital assets.

Overall, Canadian Depositary Receipts (CDRs) offer investors an efficient way to own shares of some of the world’s most powerful and dominant companies without leaving the Canadian market. Over time, owning high-quality, durable growth businesses has proven to be one of the most reliable ways to build wealth for the long term.

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Disclosure: The analyst(s) responsible for this report do not have a financial or other interest in the securities mentioned.