Given the massive regulatory, geopolitical, and technological changes over the last ten years, the future may be significantly different.
Millions of people now have legal access to cannabis, unprecedented numbers of electric vehicles are set to flood the streets, and drones are preparing to deliver everything from Amazon.com, Inc. orders to life-saving medical supplies.
Yet not all stocks are prepared for the coming decade. In fact, the vast majority aren’t positioned to take advantage of our impending future.
If you want to compound your money rapidly, this may be your best chance. The following three stock picks may experience volatility, but they’re targeting once-in-a-lifetime opportunities.
Cannabis done right
By 2030, cannabis could be a $100 billion global market, but some top analysts expect sales to eventually top $200 billion. In either case, cannabis is a lucrative opportunity.
Last year, we saw a number of pot stocks surge. In several cases, shares doubled or tripled in value. This year has been a different story.
Even the most reputable marijuana companies have seen their stock prices slashed in half. Volatility should be expected in any early-stage market, just make sure you’re prepared to take advantage.
Since April, HEXO Corp (TSX:HEXO)(NYSE:HEXO) shares have fallen by 70%. The company has faced its fair share of troubles, but it’s undeniably building an incredibly valuable asset: a cannabis platform.
Instead of selling directly to the market, HEXO is partnering with big businesses like Molson Coors Canada Inc. to create co-branded products.
The company is currently looking to acquire additional partners to co-create sleep aids, edibles, cosmetics, and more. Leveraging existing brands in each vertical should help HEXO reach consumers much faster than going it alone.
Buy the suppliers
Instead of making its own cars, Lithium Americas is focused on supplying the entire electric vehicle industry. That way, no matter which brand ends up winning the consumer war, Lithium Americas will benefit.
The company’s lithium mines in Argentina and Nevada are set to become some of the lowest cost projects in the world. As electric vehicle sales take off, so will demand for lithium. Lithium Americas’ low-cost position ensures healthy profits when selling prices are high while protecting downside when commodity prices slip.
The company’s mines have expected lifespans of 40 years or more, so this story will have plenty of room to run once market traction picks up.
Take to the skies
Canada has some of the most remote communities on the planet, yet the people who live in these areas still need access to everyday supplies, especially emergency medical items. Today, it can take days to reach these communities.
Plus, the cost of transportation is often prohibitive in the first place. Drone Delivery Canada Corp (TSX:FLT) is looking to change that.
Start-ups like Zipline, which operates in Rwanda, are already proving that drone delivery can be cost-effective and significantly faster than traditional approaches. “If Drone Delivery Canada can master domestic drone delivery, it could instantly save consumers and businesses millions of dollars per year while slashing delivery times,” I wrote earlier this month.
The company is being assigned a $135 million value, but the drone delivery market in Canada should eventually be worth at least $1 billion.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. David Gardner owns shares of Amazon and Tesla. Tom Gardner owns shares of Tesla. The Motley Fool owns shares of and recommends Amazon and Tesla. The Motley Fool recommends HEXO. and HEXO. Tesla is a recommendation of Stock Advisor Canada. Fool contributor Ryan Vanzo has no position in any stocks mentioned.