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Fool Canada’s first 1,000%+ winner?

Our Chief Investment Advisor, Iain Butler, and a team of The Motley Fool’s most talented investors from across the globe recently embarked on an unprecedented mission:

To identify the 20 Canadian small-cap companies they believe have the best shot at earning investors like you gains of 1,000%+ over the coming years.

For the next few days only, you can get the names and full details on these 20 potential “10-baggers” when you join Iain and his team in a first-of-its-kind project they have dubbed Discovery Canada 2017.

Unlock the Greatest Potential for Your Money

Interests rates are low, and five- to 10-year government bonds yield roughly 1.3%. With that kind of long-term time horizon, you can unlock greater potential for your hard-earned dollars by investing in stocks.

Higher returns can make a big difference

If you invest $5,500 in a Tax-Free Savings Account for 1.3% per year for five years, you would end up with almost $28,400, of which about $900 will be growth from your investments and $27,500 will be from your savings. The total returns of your investments would be about 3.3%.

If you instead invest $27,500 for 10% per year, you would end up with nearly $35,500, of which about $8,000 would be returns from your investments. The total returns of your investments would be about 29%. In other words, this growth would be 8.8 times the amount one would get from investing in long-term government bonds.

The longer the compounding, the bigger the difference

What happens when you invest $5,500 every year for 10 years with 1.3% annualized returns? You would end up with $58,700, of which about $3,700 would be growth from your investments. Your total returns would be about 6.7%.

If you instead invest an annualized return of 10%, you would end up with nearly $93,900, of which about $38,900 would be returns from your investments. Your total returns would be about 70%. In other words, this growth would be 10.5 times the amount one would get from investing in long-term government bonds.money, wealth

What can get you 10% returns?

You could potentially get +10% returns from high-growth stocks such as Shopify Inc. (TSX:SHOP)(NYSE:SHOP). Last year alone, the stock climbed about 165%.

If you’re not comfortable with growth stocks, you can consider businesses that are backed by real assets. For example, Brookfield Property Partners LP (TSX:BPY.UN)(NYSE:BPY) owns a portfolio of quality real estate around the globe.

Its core portfolio is comprised of 269 best-in-class office and retail properties. Additionally, it also has opportunistic investments in multifamily, industrial, hospitality, triple net lease, self-storage, and student-housing assets for higher returns.

The units offer a 5.3% yield thanks to a strong greenback (the shares pay U.S.-denominated distributions). On top of that, management aims to grow its distribution by at 5-8% per year. So, that leads to an approximate annualized return of at least 10%, excluding any potential multiple expansions.

Investor takeaway

Government bonds offer low but guaranteed returns and promise the security of your principal.

Although stocks are riskier than bonds, stocks can unlock a greater potential for your invested dollars by delivering much higher returns in the long run. If you have a long-term horizon, you should consider sprinkling some high-growth stocks or quality dividend-growth stocks in your portfolio to build greater wealth over time.

36-Year Old CEO Bets Over $300 Million on 1 Stock

Iain Butler, Lead Adviser of Stock Advisor Canada, recommended this little tech darling to thousands of loyal members last March... and those that followed his advice are up 127.7% (they've already made 2X their money!).

Not to mention this tiny Eastern Ontario company has already been recommended by both Motley Fool co-founders, David and Tom Gardner, because of its amazing similarity to an "early stage" Amazon.

Find out why Tom Gardner was recently on BNN's Money Talk raving about this company, and how you can read all about it inside Stock Advisor Canada. Click here to unlock all the details about his Canadian rule breaker!

Fool contributor Kay Ng owns shares of Brookfield Property Partners. Tom Gardner owns shares of Shopify. The Motley Fool owns shares of Shopify and SHOPIFY INC. Shopify is a recommendation of Stock Advisor Canada.

NEW! This Stock Could Be Like Buying Amazon In 1997

For only the 5th time in over 14 years, Motley Fool co-founder David Gardner just issued a Buy Recommendation on this recent Canadian IPO.

Stock Advisor Canada’s Chief Investment Adviser, Iain Butler, also recommended this company back in March – and it’s already up a whopping 57%!

Enter your email address below to find out how you can claim your copy of this brand new report, “Breakthrough IPO Receives Rare Endorsement.”

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