If you’re a young investor who can afford to take on a bit of risk, then it might be a good idea to accumulate shares of stocks with solid growth profiles with the intention of holding them for the next decade and beyond. Shares of such explosive growth stocks may be subject to more volatility, so it’s important to be disciplined through the ups and downs these stocks will face over the next decade.
Canopy Growth Corp. (TSX:WEED)
Canopy is Canada’s largest pot company by market cap, and although it isn’t the most efficient producer right now, it certainly has been making many deals at the international scale.
Canopy was recently named one of New Brunswick’s suppliers, and there are many reasons to believe that more provinces will opt to name Canopy as their supplier of choice. Canopy is the biggest name, and the brands are head and shoulders above the competition.
Over the course of the next decade, it’s likely that each province will become more flexible with regards to non-government-run pot shops and advertising initiatives. This means Canopy will get a chance to show its true colours with its solid portfolio of brands, which may evolve into a premium brand akin to the Marlboro of the tobacco industry.
BlackBerry Ltd. (TSX:BB)(NASDAQ:BBRY)
CEO John Chen has rebooted BlackBerry as a software company after years of struggling with consumer devices. BlackBerry now has a very promising growth runway and the potential to make a major impact in the autonomous driving space over the next few years.
BlackBerry is a completely different business and is one of the best turnaround candidates on the TSX. Even the infamous short-seller Andrew Left of Citron Research is bullish on BlackBerry and believes that the stock could double in approximately two years.
Another reason to be bullish on BlackBerry is its relentless focus on cybersecurity. We live in a time where high-profile companies are getting hacked on what seems like a regular basis. John Chen believes that BlackBerry and its products would have prevented such a public disaster.
Alimentation Couche Tard Inc. (TSX:ATD.B)
Couche Tard is an M&A superstar with an incredible management team that knows how to extract value and drive synergies from the acquisitions that it makes.
The company is just coming off its largest acquisition to date (CST Brands), and it’s taking a bit of time to digest. As a result, shares of ATD.B have flat-lined over the past few years, but don’t mistake this for a case of slowed growth. The global convenience store industry is still very fragmented, and there are ample opportunities for Couche Tard to continue on its growth trajectory for the next decade and beyond.
Dollarama Inc. (TSX:DOL)
Dollarama, like Couche Tard, is consolidating a fragmented industry, which probably won’t be consolidated after the next decade, so that means there’s a tonne of room to grow.
The company currently has over 1,000 Canadian locations, and the management team is shooting for 1,400 stores, which it believes it could support in the short to medium term.
Not only does Dollarama offer next-level long-term growth, but the stock is extremely defensive and will likely not get hit as hard as some of its peers once the next recession comes around. Consumers may be enticed to be more frugal and spend more at dollar stores when times are tough. That’s good news for long-term shareholders who want growth and defence together.
Fairfax Africa Holdings Corp. (TSX:FAH.U)
Fairfax Africa allows Canadians to gain exposure to the red-hot emerging market of Africa. The holding company recently completed its investment in Atlas Mara Limited for ~$59 million. Atlas Mara is a financial services company, which acquires target banks in Africa. The company’s goal is to become the leading financial services group in Africa.
FAH.U hasn’t been public for very long, but over the next decade, you can count on the company to drive huge value for long-term shareholders as it capitalizes on opportunities in the fast-growing emerging market.
Stay smart. Stay hungry. Stay Foolish.
