If you’re under 40 years old, you likely can take more risk than a retiree. This is a great advantage given that you can invest with a long-term mindset, with decades-long horizons.
Just because a stock has more risk, however, doesn’t mean there’s automatically more upside. Paying attention to the price you pay is just as important as managing your risk and reward payoff.
If you’re young enough to withstand some volatility, the following stocks look like great additions to a long-term portfolio.
Green Organic Dutchman Holdings Ltd (TSX:TGOD)
Fool contributor Michael Soares believes that Canopy Growth is the “unquestioned cannabis champion of Ontario, yet there are a few other Ontario companies that could challenge for second place.” One such company is Green Organic Dutchman Holdings.
He specifically notes that Green Organic has secured a valuable supply agreement with the province of Ontario. This is a huge asset to have in today’s market, especially as industry supply ramps up.
Another unique characteristic of Green Organic is its 49% interest in Epican Medicinals, a Jamaican cannabis grower. While this allows Green Organic to sell in that market, it also gives the company the ability to better brand its products abroad.
As cannabis prices fall, the ability to differentiate your volumes is critical to maintaining pricing power. While it’s currently viewed as a “bonus” asset, Green Organic’s Jamaican interests could give it a sizable advantage in the branded-cannabis future.
Shopify Inc (TSX:SHOP)(NYSE:SHOP)
Shopify has dominated its market for years. In many ways, it pioneered the space entirely. If you’ve ever used their e-commerce solution, it’s clear that the company has a big lead on its competitors.
The company is growing quickly.
Last quarter, revenues reached $343 million, a run-rate of nearly $1.4 billion.
By comparison, Shopify generated just $214 million in sales during the first quarter of 2018, a run-rate of $856 million. It’s hard to find a company that’s growing as fast as Shopify.
This hyper-growth has pushed the stock into the stratosphere. With a market cap of $40 billion, many are calling the stock overpriced. That may indeed be true, but it’s hard to see Shopify as a smaller company a decade down the line.
Shopify looks like an ideal stock to own as a younger investor, just make sure to remain calm and capitalize if shares take a dip.
Magna International Inc. (TSX:MG)(NYSE:MGA)
Auto-supplier Magna International may not seem like a high-growth stock, but it’s one of your best chances to profit from the autonomous vehicle boom.
Already, Magna’s products are found in more than half of all vehicles on the road today, giving it the network necessary to grow wherever autonomous vehicles take off.
Magna has used its existing network to secure early-stage contracts to supply critical parts for self-driving vehicles. For example, its contract with BMW will provide solid-state LiDAR system to make self-driving vehicles a reality. It has also partnered directly with with LYFT Inc. to create better self-driving software.
If a recession hits, Magna’s stock price could be pressured, as the autonomous growth opportunity is still a few years away. For investors with a multi-decade timeline, however, this stock could be your best way to profit from a global mega-trend.
Marijuana was legalized across Canada on October 17th, and a little-known Canadian company just unlocked what some experts think could be the key to profiting off the coming marijuana boom.
Besides making key partnerships with Facebook and Amazon, they’ve just made a game-changing deal with the Ontario government.
One grassroots Canadian company has already begun introducing this technology to the market – which is why legendary Canadian investor Iain Butler thinks they have a leg up on Amazon in this once-in-a-generation tech race.
This is the company we think you should strongly consider having in your portfolio if you want to position yourself wisely for the coming marijuana boom.
Tom Gardner owns shares of Shopify. The Motley Fool owns shares of Shopify and Shopify. Magna International and Shopify are recommendations of Stock Advisor Canada. Fool contributor Ryan Vanzo has no position in any stocks mentioned.