The coming months are expected to see the largest initial public offering in history, with Elon Musk’s SpaceX looking to sell shares worth US$50-75 billion to investors, valuing the entirety of the company at approximately US$1.5 trillion. Excitement is high among investors keen for the chance to buy into this unique company that pioneered the concept of reusable rockets, having already placed over 10,000 Starlink satellites in orbit around the earth to create a truly global internet network. The history of the company’s advancements, despite tremendous obstacles, is quite enthralling, and it is no wonder that the business captures the imagination of many stock market investors. However, the pending transaction also allows a moment for a reminder that investing success does not always need to come from companies as exciting as SpaceX. In fact, there are businesses that have prospered for years without any fanfare or media coverage, posting excellent gains while going largely unnoticed in daily affairs.
One example of a quiet winner is Metro, a grocery retailer in central Canada operating 1,000 food stores and 400 pharmacies in Ontario and Quebec. A regular, but perhaps unremarkable weekly visit for its customers, Metro has quietly posted impressive stock market performance for many years. Over the past twenty years, for example, while the overall S&P/TSX Composite Index1 posted 8.2% annual total returns, Metro investors reaped 13.7% annual total returns from this understated, well managed grocery chain2.
Another example of a quiet winner is Deutsche Boerse, owner of the Frankfurt Stock Exchange. Operating out of sight while handling stock, bond, currency and commodity trades on one of Europe’s busiest exchanges, Deutsche Boerse collects fees on every transaction and benefits from rising trading volumes as the years pass. Investors have benefited as well: over that same twenty-year span, Deutsche Boerse shareholders have collected 11.4% annual returns from this quiet winner3.
Total return, March 31, 2006 to March 31, 2026
(percent; CAD basis)
The chart above helps to illustrate the impact of these gains over the past two decades. The advantage is imperceptible at first, but thanks to the power of compounding, this growth differential translates into a major advantage, with both Metro and Deutsche Boerse far exceeding the returns of their respective broad benchmarks. Exciting companies will always capture a level of attention from investors and the popular press, and the pending share offering from SpaceX will likely be no different. However, the performance of under-the-radar stocks like Metro and Deutsche Boerse can also create returns for investors that, over time, prove to be out of this world.
¹ The S&P/TSX Composite Index is the benchmark Canadian index, representing roughly 70% of the total market capitalization on the Toronto Stock Exchange (TSX) with about 250 companies included in it.
2 Source: Bloomberg. Total returns for Metro (MRU) in C$ from 31 March 2006 to 31 March 2026
3 Source: Bloomberg. Total returns for Deutsche Boerse (DB1) in C$ from 31 March 2006 to 31 March 2026
4 The MSCI EAFE Index is a stock market index that is designed to measure the equity market performance of developed markets outside of the U.S. and Canada.
Stock Examples For Illustrative Purposes Only – It should not be assumed that the securities discussed were or will prove to be profitable, or that the investment recommendations or decisions we make in the future will be profitable or will equal the historical investment performance shown. Past performance does not guarantee future results.
Guardian Partners Inc. (“GPI”) is providing, with permission, this market commentary, which was co-authored by Guardian Capital LP (“GCLP”) and GPI. GCLP is an affiliate of GPI, and is both a sub-advisor to certain GPI accounts and the Advisor and Fund Manager to the GCLP investment funds offered to GPI clients.
This commentary is for general informational purposes only and does not constitute investment, financial, legal, accounting, tax advice or a recommendation to buy, sell or hold a security. It shall under no circumstances be considered an offer or solicitation to deal in any product or security mentioned herein. It is only intended for the audience to whom it has been distributed and may not be reproduced or redistributed without the consent of GPI. This information is not intended for distribution into any jurisdiction where such distribution is restricted by law or regulation.
The opinions expressed are as of the published date and are subject to change without notice. Assumptions, opinions and estimates are provided for illustrative purposes only and are subject to significant limitations. Reliance upon this information is at the sole discretion of the reader. This document includes information and commentary concerning financial markets that were developed at a particular point in time. This information and commentary are subject to change at any time, without notice, and without update. This commentary may also include forward-looking statements concerning anticipated results, circumstances, and expectations regarding future events. Forward-looking statements require assumptions to be made and are, therefore, subject to inherent risks and uncertainties. There is a significant risk that predictions and other forward-looking statements will not prove to be accurate. Investing involves risk. Equity markets are volatile and will increase and decrease in response to economic, political, regulatory and other developments. Investments in foreign securities involve certain risks that differ from the risks of investing in domestic securities. Adverse political, economic, social or other conditions in a foreign country may make the stocks of that country difficult or impossible to sell. It is more difficult to obtain reliable information about some foreign securities. The costs of investing in some foreign markets may be higher than investing in domestic markets. Investments in foreign securities are also subject to currency fluctuations. The risks and potential rewards are usually greater for small companies and companies located in emerging markets. Bond markets and fixed-income securities are sensitive to interest rate movements. Inflation, credit and default risks are also associated with fixed-income securities. Diversification may not protect against market risk, and loss of principal may result. This commentary is provided for educational purposes only. It is not offered as investment advice and does not account for individual investment objectives, risk tolerance, financial situation or the timing of any transaction in any specific security or asset class. Certain information contained in this document has been obtained from external parties, which we believe to be reliable; however, we cannot guarantee its accuracy. These sources include Bloomberg, Bank of Canada and National Bank Independent Network for the relevant periods cited in this commentary.
Published: May 1, 2026