Many millennials either aren’t investing or aren’t comfortable with their current investments, and this is a huge problem considering that the average lifespan is going up along with the expected retirement age. Ideally, younger investors should be more aggressive and opt for growth stocks, since they can stomach the higher degree of risk for the superior returns that growth stocks could offer over the long run.
Here are four growth stocks that I believe should be at the core of a young investor’s portfolio:
Canopy Growth Corp. (TSX:WEED)
It’s really hard to beat triple-digit growth numbers offered by companies within the rapidly emerging marijuana industry. As we count down towards legalization day, many provinces are expected to release details on their plans for regulation, which should give all pot stocks a nice bump.
The reason I prefer Canopy over its peers is because of management’s incredible ability to establish relationships with partners from around the globe. In addition, the company has an ambitious growth expansion plan and arguably the best brands in the weed scene today.
Once legalization day hits, many experts forecast a huge amount of demand that will not be met by supply, at least for the first few years. Canopy realizes this, and it has doubled down on production to capitalize on a once-in-a-lifetime opportunity.
BlackBerry Ltd. (TSX:BB)(NASDAQ:BBRY)
BlackBerry isn’t a phone maker anymore; it’s a cybersecurity specialist with the most sophisticated end-to-end security solution available for connected vehicles.
Self-driving cars are the future, but with such a major advancement in technology comes risks and potential dangers. If a hacker gains remote access to a self-driving car, the car becomes a weapon, and lives could be on the line.
This sounds like an episode of Black Mirror, but it’s the reality. The future could be dangerous if the proper precautions aren’t taken. BlackBerry’s QNX operating system is the safeguard that could be embedded in the connected cars of tomorrow. If that’s the case, shares of BB could skyrocket over the next decade. There is fierce competition; however, BlackBerry has a product that’s difficult to replicate.
Alimentation Couche Tard Inc. (TSX:ATD.B)
Couche Tard has slowed in recent years, but investors shouldn’t worry, as there are still ample acquisition targets in the fragmented world of convenience stores, which is nowhere near consolidation.
The company has an incredible management team that knows how to drive synergies from acquisitions like no other convenience store operator out there.
Going forward, more acquisitions are likely in the cards, which will drive earnings growth for many years to come.
Restaurant Brands International Inc. (TSX:QSR)(NYSE:QSR)
Restaurant Brands International is the company behind Burger King, Tim Hortons, and Popeyes Louisiana Kitchen. As the company name suggests, more acquisitions of well-known fast-food firms are probably in the cards over the next decade.
The management team has a proven track record of expansion and same-store-sales growth excellence, both of which will be continual drivers of earnings over the long run.
The franchise model allows the management team to focus on value-driving initiatives and expansion opportunities, so the company can continue to grow at a rapid rate.
Restaurant Brands International is taking over the fast-food industry one brand at a time, and the best part is, this growth story is just in its early stages.
