All it takes is one investment to propel you to financial freedom.
You always hear about millionaires who made through the stock market, and while you may think such self-made market millionaires were minted through the timely speculation on questionable alternative assets like Bitcoin or any other “fad” investment instruments, the fact remains that many of today’s smart millionaire investors were made through wise decisions that were sat on over the course of decades.
Finding the big investment opportunity is hard, but having enough patience to sit on your bum for years and decades at a time is exponentially harder, especially when things get rough, as they always do. So, if you’re looking for near-term gains, you’d be better served looking elsewhere, because the stock I’m going to introduce you to is a very fine wine that’s only going to get better with age.
Enter StorageVault Canada (TSXV:SVI), arguably the best business that trades on the TSX Venture exchange. With a mere $1 billion market cap, you’re forgiven if you’re never heard of the fast-growing Canadian self-storage king.
Now, I know what you’re probably thinking. Self-storage facilities? That’s incredibly boring! How the heck can such a snooze-worthy business be capable of the kind of growth to deliver superior risk-adjusted returns to investors?
Just have a look at StorageVault’s peers to the south. U.S.-based self-storage companies are not only boring, but they’ve also underperformed the market over the last five years, and they’re not even cheap! While the industry south of the border is undoubtedly less of an opportunity, the Canadian self-storage scene is relatively fragmented and due for significant consolidation by a firm with enough expertise to unlock value from potential operationally inefficient areas of existing self-storage businesses.
Will Ashworth, my colleague here at the Motley Fool, touts StorageVault as one of his favourite TSXV-traded stocks, and I think he’s on to something. Ashworth went into detail on StorageVault’s recent results, which were nothing short of remarkable. More interestingly, Ashworth noted that StorageVault is a “real estate company dressed up as a self-storage business” that has “lots of runway for growth.”
Not only is StorageVault in an opportunistic position to consolidate the Canadian self-storage industry, but it’s going to be riding on a generational tailwind in the form of the seven D’s (downsizing, death, divorce, displacement, disaster, density, and demand for e-commerce goods). Canadians not only need real estate to house themselves, but they also need a place for their ever-growing mountain of stuff to stay, and that’s where StorageVault’s coming to the rescue.
Foolish takeaway on StorageVault Canada
StorageVault has a lack of coverage from the analyst community, and that’s a good thing for investors like you who are willing to dig for the gems. I think StorageVault is a huge gem, and after years of share consolidation, I think the stock could be ripe for a pop.
StorageVault is a heck of a long-term growth play, and if you’ve got the time and the cash, I’d store this gem of a stock in your TFSA right now.
