While many investors fret over the timing of the next crash, there are plenty of stocks ready to grow over the next decade or more regardless of what the market does.
There will surely be swings along the way, but here are three companies that will likely be much bigger 10 years down the line.
Shopify Inc (TSX: SHOP)(NYSE:SHOP)
Shopify is growing like a weed. In 2014, revenues came in at $105 million. In 2015, they nearly doubled to $205 million. The following year sales doubled yet again, approaching $390 million. In 2018, revenues surpassed $1 billion for the first time.
Ultimately, Shopify estimates that its addressable market is around $64 billion, which is calculated using the total number of retail businesses (roughly 47 million) and Shopify’s average annual revenues per user (around $1,300).
Competition is heating up, but there should be enough growth for everyone to benefit. In the short-term, shares appear overpriced at 22 times sales. Square Inc, for comparison, trades at just nine times sales.
Still, it’s hard to see Shopify shares not increasing over the next decade. As with any high-growth stock, there could be plenty of stumbles along the way, so be prepared to double-down if the opportunity arises.
Green Organic Dutchman Holdings Ltd (TSX:TGOD)
Green Organic operates in another high-growth industry: cannabis. Compared to peers like Aphria (TSX:APHA)(NYSE:APHA), Green Organic is in a class of its own.
In recent months, notable investors have called Aphria a “shell game” after its management team effectively used the company to enrich themselves. Some short-seller set a price target at $0. While there may ultimately be value in Aphria shares, there’s no reason to take the governance risk, especially when better options like Green Organic are available.
Green Organic primarily focuses on Canadian markets. While this limits their growth potential, it also de-risks their operations given that there’s more certainty in the regulatory climate. Even more exciting is the company’s commitment to shareholder returns, something many of its competitors seem to forget.
By 2021, the company may produce 170,000 kilograms of cannabis per year. This output will be completely organic, fetching a premium price in an increasingly commoditized market.
Green Organic doesn’t have the large upside of its international competitors, but if it can execute on its vision, expect shareholders to be happy years down the line.
Brookfield Infrastructure Partners L.P. (TSX: BIP.UN)(NYSE: BIP)
Brookfield Infrastructure has been one of the most reliable stocks on the TSX for years. Since 2009, shares have risen from $12 to more than $55, handily outpacing the market average.
Fortunately, the same factors that contributed to this outperformance will persist for decades more.
Brookfield Infrastructure invests in infrastructure projects such as highways, power plants, pipelines, and railroads. It’s truly a global company, with cash flows coming from North America, Europe, Asia, and South America.
The basic thesis here is that a growing global population increases demand on infrastructure. Those that own existing infrastructure or build new projects will benefit. This thesis has largely proven correct throughout Brookfield Infrastructure’s history.
By 2040, the global population should rise by another two billion people — that should be music to your ears if you’ve invested in Brookfield Infrastructure stock.
