Three TSX compounders I’d use to build a powerful, tax-free portfolio for long-term financial security
If you’ve got $7,000 to contribute to your Tax-Free Savings Account (TFSA) this year, you’re sitting on one of Canada’s most valuable wealth-building tools. The TFSA allows your investments to grow and compound tax-free — no capital gains, no dividend taxes, and no withdrawal penalties.
But the real secret to unlocking its potential? Choosing stocks that don’t just go up, but compound value over time. Below, I’ll share how I’d personally invest that $7,000 in 2025 using a mix of quality Canadian companies with a track record of delivering long-term growth.
Background & Context: Why Use a TFSA for Wealth-Building?
Introduced in 2009, the TFSA was designed to give Canadians a flexible way to grow their savings without the tax burden. Unlike RRSPs, TFSAs don’t come with income restrictions or mandatory withdrawals. And because your gains are never taxed — even when withdrawn — it’s one of the best places to park long-term growth stocks.
If your $7,000 investment compounds at just 10% annually, it could grow to over $18,000 in 10 years — and every dollar would be yours to keep. That’s why I focus on high-conviction, low-turnover investments for my TFSA portfolio.
Deep-Dive Analysis
Colliers International Group (TSX: CIGI)
A steady global performer with a founder-led team and growth via smart acquisitions
Colliers has been a quiet compounder for decades. Best known for its commercial real estate services, Colliers is no longer just a property play. It’s been transforming into a diversified services business, expanding into engineering, asset management, and investment services.
In Q1 2025, the company delivered 14% revenue growth and 13% EPS growth, despite broader economic headwinds. With tariff-related concerns expected to ease by 2026, Colliers is positioning itself for renewed momentum.
Why it belongs in your TFSA:
- Founder-led with strong insider ownership
- Consistent mid-teen returns over 25+ years
- Well-managed M&A strategy fueling global expansion
TerraVest Industries (TSX: TVK)
An underrated industrial compounder building shareholder value under the radar
TerraVest is one of those rare Canadian stocks that delivers huge returns without making headlines. Over the past five years, it has surged nearly 970%, thanks to its savvy acquisition strategy and lean operating model.
The company manufactures essential industrial equipment — pressurized tanks, boilers, and specialty vehicles — often in niche, recession-resistant sectors. In 2025, it’s aggressively expanding across North America and showing no signs of slowing down.
Why it belongs in your TFSA:
- Proven ability to grow via acquisitions and integration
- High margins in “boring” but necessary industries
- Long runway for growth in underserved markets
This is exactly the kind of company that could quietly 10x your TFSA over time if you let compounding do its work.
TFI International (TSX: TFII)
A fallen star in transportation with potential for a strong rebound
TFI is down 35% this year. Why? The transportation sector has been hit hard by economic softness and renewed tariff tensions, leading to reduced freight volumes and thinner margins.
But look beneath the surface: TFI is improving operations, streamlining divisions, and setting itself up for long-term success. With strong free cash flow and an experienced management team, this is a value stock hiding in plain sight.
For patient investors, this is a textbook TFSA move: buy a cyclical leader when it’s out of favor and hold it tax-free as it recovers and grows.
Why it belongs in your TFSA:
- Market leader in North American freight and logistics
- Strong balance sheet and capital discipline
- Attractive valuation with upside tied to macro recovery
Actionable Takeaways & Key Insights
If I were starting or adding to my TFSA this year, here’s exactly how I’d allocate that $7,000:
- Colliers International (CIGI): $2,500 – A rock-solid compounder with global growth potential
- TerraVest Industries (TVK): $2,500 – A hidden gem that’s quietly built massive shareholder value
- TFI International (TFII): $2,000 – A turnaround story with undervalued upside
And here’s why that mix works:
- It blends steady growth with opportunistic value
- All three stocks pay modest dividends — but most of the value is in long-term capital appreciation
- Each company has a clear business model, strong leadership, and a path to compounding
Conclusion & Call to Action
The TFSA isn’t just a savings vehicle — it’s a long-term wealth engine. By investing your $7,000 contribution into high-quality Canadian compounders like Colliers, TerraVest, and TFI International, you’re building a portfolio designed to grow tax-free for years to come.
As always, the secret to success isn’t just what you buy — it’s how long you hold. Stay disciplined, reinvest dividends, and let time and compounding do the heavy lifting.
Stay tuned to The Evolving Post for more smart, actionable updates that impact your money and your future — because understanding the system is the first step to changing your financial story.
While this analysis is based on thorough research, it is for informational and educational purposes only and should not be considered financial advice.
