These Extremely Profitable Growth Stocks Have Far More Long-term Upside Than Any Cannabis Stock

Restaurant Brands International (TSX:QSR)(NYSE:QSR) and one other non-cannabis stock that’ll help you get rich safely, and steadily over the course of decades.

| More on:
Shopping card with boxes labelled REITs, ETFs, Bonds, Stocks

Image source: Getty Images.

Unless you’re a seasoned disciple of Warren Buffett, it’s hard not to be somewhat enticed by the astronomical returns that have been put up by many of Canada’s high-flying pot stocks. They’ve made many folks rich over a very short period, and while the marijuana market may be one of the greatest generational opportunities in the recent memory, the fact remains that they’re far too risky to own for a majority of investors.

So, don’t feel obliged to leave your circle of competence and give into the fear of missing out (FOMO) just because the talking heads on CNBC or BNN Bloomberg are talking about the subject ad nauseum. There are other multi-bagger opportunities out there that can offer you a superior risk-adjusted return throughout the long-term without requiring you to risk your entire principal on the occurrence of short-term contingent events.

So if you’re sick of hearing about hyped-up cannabis stocks, and would rather focus on investing in a name that’ll help you build wealth safely over the next 5, 10 or 20 years, you may want to consider the following two stocks instead.

Canada Goose Holdings (TSX:GOOS)(NYSE:GOOS)

The Goose is not only the hottest IPO to hit the Canadian market in decades; it’s arguably the apparel stock with the highest upside over the next five to 10 years! The incredibly intelligent management led by Dani Reiss continues to pull all the right levers to grow the business by high double-digit percentage points in a profoundly profitable fashion.

Who says you need to compromise on near-term profitability to attain massive top-line growth?

As Canada Goose continues with its global expansion while beefing up its DTC e-commerce channel, I think the company has many more upside surprises up its sleeve. The company has exceeded the expectations of analysts in the past, and with strong growth drivers up ahead, Canada Goose could be Canada’s next big multi-bagger.

Restaurant Brands International (TSX:QSR)(NYSE:QSR)

When it comes to high-growth stocks, you’re expected to take on a lot more risk relative to a lower-growth stalwart. Restaurant Brands is a rare exception with its highly predictable long-term growth plan that could realistically sustain double-digit EPS growth numbers for many years, possibly decades to come.

Premier fast-food restaurants are recession resilient cash cows. The more establishments you plop down, the more wealth goes back into the pockets of shareholders. The masterminds behind the company, 3G Capital, are seasoned operators who, like Canada Goose, know how to grow top-line numbers through the roof while maintaining incredibly high profitability numbers.

The brands behind Restaurant Brands (Tim Hortons, Burger King, Popeyes Louisiana Kitchen) have tons of untapped potential in the international markets with the potential draw massive crowds. Through the company’s master franchise joint venture, Restaurant Brands can attain maximum growth with minimal capital risk.

As cannabis investors see their holdings boom and bust over the course of many years, you’re going to be laughing your way to the bank with generous dividend payments to go with substantial capital gains as the managers at 3G Capital continue to execute on a plan to slowly, but surely take over the fast food industry one acquisition at a time.

Foolish takeaway

Cannabis stocks may have explosive upside potential in the near-term, but over the next seven years plus, I’m willing to bet Canada Goose and Restaurant Brands will grant you a far greater total return if you were to place a bet at today’s levels.

The choice is yours. Speculative near-term upside potential for an astronomical amount of risk? Or consistent long-term upside with minimal risk for those with a long-term time horizon? For most Foolish investors, the answer is clear!

Stay hungry. Stay Foolish.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Joey Frenette owns shares of RESTAURANT BRANDS INTERNATIONAL INC. The Motley Fool owns shares of RESTAURANT BRANDS INTERNATIONAL INC.

More on Investing

Arrowings ascending on a chalkboard

5 Canadian Stocks That Have Gained Value Year to Date

Although many Canadian stocks have sold off this year, and by a significant amount, here are five that have actually…

Read more »

Filling up at the gas pumps.
Energy Stocks

Gas Prices Are Hitting Record Highs: 2 Stocks to Buy Now!

Buy Suncor Energy stock, Canada's integrated oil and gas giant that's benefitting immensely, as gasoline prices continue to soar.

Read more »

Senior Couple Walking With Pet Bulldog In Countryside
Bank Stocks

A Different Bank for a Comfortable Retirement

Want a comfortable retirement? Investing in this different bank today can help you reach that goal through a solid income…

Read more »

Money growing in soil , Business success concept.
Dividend Stocks

Top Canadian Dividend Stocks to Buy and Hold for the Long Term

These Canadian companies have been paying dividends for more than four decades and have been consistently growing the same.

Read more »

Bank Stocks

Bank of Montreal (TSX:BMO) Raises Dividend: Is the Stock a Buy?

Bank of Montreal is about to get a lot bigger. Should you buy the stock?

Read more »

man window buildings

Where Do Economists Expect Canadian Housing Prices to Fall Most?

Canadian housing prices may be falling -- in some regions, more than others -- but there are still plenty of…

Read more »

Business success with growing, rising charts and businessman in background
Energy Stocks

3 Hydrogen Stocks Set to Become Major Multi-Baggers

These three hydrogen stocks could certainly achieve multi-bagger status in the years to come after they overcome the present-day hurdles.

Read more »

Stocks for Beginners

Starting an Investment Portfolio? Buy These 3 Stocks!

Interested in getting a start in the stock market? Buy these three stocks today!

Read more »