Cheap Investors: Turn $5000 Into $500,000 in 20 Years

Bank of Nova Scotia (TSX:BNS)(NYSE:BNS), Enbridge Inc. (TSX:ENB)(NYSE:ENB) and this one other stock are the perfect trio to bring you to an amazing 20 year goal.

| More on:
edit Business accounting concept, Business man using calculator with computer laptop, budget and loan paper in office.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn more

Let’s face it: whether you would admit it publicly or not, we all like to be cheap. Whether it’s out of necessity or just the thrill of paying a little to get a lot, being cheap can certainly have its rewards.

But those rewards don’t always come easily. That is, unless you’re looking in the right place. Now I’m not suggesting that you go out and purchase a bunch of high-risk, high-reward stocks right now. Rather, what I’m suggesting is creating a long-term, buy-and-hold portfolio consisting of strong, conservative stocks.

For my scenario, you won’t need much to get there. I’m going to assume you can scratch together a minimum of $5,000 to put aside for this portfolio and turn that into $100,000. It’s not a magic trick, just solid investing.

Bank of Nova Scotia

Luckily for you, now is the time to invest. The market has gone up, then down, then up, then down again to where it is now. For instance, take a look at the Bank of Nova Scotia (TSX:BNS)(NYSE:BNS).

While this bank has a steady performance in share price, increasing by almost 150% in the last decade, in the last little while, it’s been pretty cheap.

That’s mainly because of the overall market worry of a mortgage crisis. Analysts are stirring the pot and pushing bank stocks down, and Scotiabank isn’t immune. That means that buying up this stock now provides you with a perfect opportunity to see incredible gains.

In the meantime, Scotiabank is expanding on a global scale, and through wealth management acquisitions.


Another company experiencing a short-term downturn is Enbridge Inc. (TSX:ENB)(NYSE:ENB). There are two factors here. First, the oil and gas industry overall is putting a strain on this oil and gas pipeline company. Second, the company’s Line 3 expansion has been delayed yet again by the courts, sending the share price down further.

Again, it’s the perfect time to buy. The long-term outlook for Enbridge is phenomenal. With a number of growth projects in the works set to come online by 2021, it will completely change the company’s bottom line. Yet Enbridge already has a number of long-term contracts that will see the company bring in free cash flow for decades.

Stars Group

Finally, we have The Stars Group Inc. (TSX:TSGI)(NASDAQ:TSG).  This company hit a peak last month when shares went up to $27, but have since dropped down to the $22 range. Analysts are betting this stock is set to climb right back up there in the next 12 months, to $29 or even $31 per share.

Stars has been acquiring companies like crazy, and doesn’t plan on stopping. In fact, it has now started focusing on acquiring rival gaming sites, making a clear path to put the competition completely in its rearview.

There’s also the potential for U.S. expansion, as once the U.S. legalizes online gaming the share price could sky rocket. The company already has a foothold through a Fox sports partnership to run Fox Bet.

Foolish takeaway

Now the moment you’ve been waiting for. By looking at historical performance, an investment of $1667 in Scotiabank, $1,700 in Enbridge, and $1,633 in Stars Group would bring you to $503,515 in just 20 years.

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 Amy Legate-Wolfe owns shares of ENBRIDGE INC. Enbridge and Bank of Nova Scotia are recommendations of Stock Advisor Canada.

More on Bank Stocks

edit Four girl friends withdrawing money from credit card at ATM
Bank Stocks

3 Cheap Bank Stocks to Buy Today

Canadians may want to snatch up top bank stocks like Bank of Montreal (TSX:BMO)(NYSE:BMO) that look undervalued today.

Read more »

Bank sign on traditional europe building facade
Bank Stocks

Should You Buy Canadian Bank Stocks After the Recent Correction?

Dividends and fairly valued Canadian bank stocks look attractive. But the macro picture could be a spoiler!

Read more »

Piggy bank next to a financial report
Bank Stocks

Scotiabank (TSX:BNS): A Stock to Buy and Hold Forever

Scotiabank stock is a well-diversified business, boasts a strong balance sheet, and is a reliable dividend stock, making it an…

Read more »

question marks written reminders tickets
Bank Stocks

Are Canadian Bank Stocks Oversold?

Canadian bank stocks are down more than 20% from the 2022 highs. Is this a good time to buy?

Read more »

money cash dividends
Bank Stocks

Market Selloff: Time to Hold Financial Stocks

Income investors should consider holding financial stocks for dividend safety in this period of uncertainty.

Read more »

Man holding magnifying glass over a document
Bank Stocks

TD Bank Stock Looks Severely Undervalued Going Into the 2nd Half of 2022

TD Bank (TSX:TD)(NYSE:TD) stock has been under pressure amid the TSX Index correction but may be among the best bounce-back…

Read more »

Coworkers standing near a wall
Bank Stocks

Policy Rate: 2 More Hikes After July 2022 to Reach Neutral Level

The Bank of Canada might need three more rate hikes beginning in July 2022 to reach neutral levels.

Read more »

You Should Know This
Bank Stocks

75-Basis-Point Rate Hike? Here’s What it Means for Stocks

Aggressive rate increases dampen investors’ sentiment and send share prices tumbling, because the hikes can impact corporate earnings or profits.

Read more »