What stocks should young investors shoot to own if they’re looking to gain financial independence and the ability to retire early? While the optimal mix of securities differs depending on the individual, young investors should aim for high-growth stocks that have the potential to clock in higher-than-average returns over the long haul — preferably double-digit top-line growers with talented management teams. Why the emphasis on management? Talented managers can keep the growth alive a lot longer than managers who are unable to continue driving growth as their businesses grow in size. Consider stocks like Canada Goose Holdings (TSX:GOOS)(NYSE:GOOS) and…
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What stocks should young investors shoot to own if they’re looking to gain financial independence and the ability to retire early?
While the optimal mix of securities differs depending on the individual, young investors should aim for high-growth stocks that have the potential to clock in higher-than-average returns over the long haul — preferably double-digit top-line growers with talented management teams.
Why the emphasis on management? Talented managers can keep the growth alive a lot longer than managers who are unable to continue driving growth as their businesses grow in size.
Consider stocks like Canada Goose Holdings (TSX:GOOS)(NYSE:GOOS) and Restaurant Brands International (TSX:QSR)(NYSE:QSR), two stocks with exceptional stewards that are custom-tailored to a young investor who’s looking to get a leg up over the broader markets.
Canada Goose CEO Dani Reiss can’t seem to do any wrong with his family business that’s evolved into one of the hottest luxury brands in the international outerwear scene.
Fellow Fool contributor Will Ashworth and I usually have opposing viewpoints for any given stock, but when it comes to the Goose, we both believe it can fly much higher from here.
Ashworth loves the company’s “trifecta of growth (wholesale, online, and brick and mortar)” that he believes will continue to post “double-digit revenue and net income growth this year and many years to come.”
I think he’s right on the money and the long-term growth story can be summarized in the company’s incredible ability to get all three of its sales channels at full capacity. The Goose is firing on all cylinders, and with the untapped Chinese market ready to dawn the Goose’s must-have outerwear of the season, it’s hard not to salivate at the forward-looking possibilities.
Dani Reiss is a wizard, and I’d bet on his Goose, even at these levels with the stock trading at nearly 78 times trailing earnings. You’re paying a premium price tag for one of the best retailers on the planet. While I’d personally prefer buying the stock on a dip, those with a long-term horizon should feel comfortable getting a bit of skin in the game today, as the Goose could fly at a moment’s notice.
Restaurant Brands International
For those looking for a stable growth king with a dividend, there’s Restaurant Brands International (or RBI for short), the owner of Burger King, Tim Hortons, and, most recently, Popeyes Louisiana Kitchen.
The fast-food conglomerate has posted incredible results and massive dividend hikes since its IPO a few years ago, and although the Tim Hortons brand has served up its fair share of controversy over the past few years, one can’t help but drool at the incredible top-line numbers the company has been posting of late.
With RBI, you’re not just getting three stellar fast-food brands; you’re also getting one of the best minds in the industry: Daniel Schwartz, the director of RBI.
Dan is the man and the prodigy that transformed Burger King from a bloated, low-growth stalwart into a serious industry threat. The man is all about the shareholders and isn’t willing to splurge on corporate jets like most other executive chairmen are. To put it simply, Schwartz is a smooth operator. And with the firm’s capital-light franchisee model, his $41 billion company has the agility of a company that’s a quarter its size.
Warren Buffett has always highlighted the importance of management, and when it comes to RBI, you’re getting the crème de la crème with 3G Capital with its seasoned track record of exceptional growth results, both organically and inorganically.
Whether you choose to invest alongside Dani Reiss or Daniel Schwartz, both men have the ability to create substantial wealth for you over decades.
For those looking for hyper-growth, Canada Goose and Dani Reiss are a solid bet. And for those looking for a bit more stability and a higher margin of safety, there’s RBI and Daniel Schwartz.
Stay hungry. Stay Foolish.
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Fool contributor Joey Frenette owns shares of RESTAURANT BRANDS INTERNATIONAL INC. The Motley Fool owns shares of RESTAURANT BRANDS INTERNATIONAL INC and has the following options: short October 2019 $82 calls on Restaurant Brands International.