Who doesn’t want to get rich by doubling their money quicker?
Value investing is one of the best ways to get rich. Essentially, investors seek to buy stocks at a bargain, which often leads to amazing gains.
Another way to get rich quicker is by investing in high-growth companies. One of my favourite high-growth stocks is Brookfield Business Partners (TSX:BBU.UN)(NYSE:BBU).
Tourmaline is one of the largest natural gas producers in Canada. It enjoys the lowest borrowing costs in terms of effective interest rate among its North American peers. Its net debt to cash flow is very reasonable at 1.4 times.
Moreover, it’s a low-cost producer with a track record of production and reserve growth on a per-share basis.
Capital efficiency is expected to continue to improve going into 2020, which should lead to higher profitability.
Tourmaline is trading at a multi-year low, and it’s quite easy to see that it’s a huge bargain.
The company itself has bought back 760,000 shares since October. Multiple insiders also bought the common stock throughout 2019. Importantly, Tourmaline has the largest insider ownership (four times the peer average) among senior producers.
At writing, the company trades at $14.84 per share, which is only about 3.4 times its cash flow. The stock can more than double your money to trade at the $30 level in a few years. Currently, analysts have an average price target of $20.90 per share on the value stock, which represents +40% near-term upside.
While you patiently wait to double your money, get a safe 3.2% dividend yield from Tourmaline stock. The company last increased its dividend by 20% in May. And its recent free cash flow payout ratio was less than 38%.
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Brookfield Business Partners
Brookfield Business is a rare gem. It’s able to achieve high returns because of its unique capabilities as a global value investor that recycles capital often.
Essentially, Brookfield Business buys businesses and improves their operations with its expertise, which leads to increased margins, profitability, and cash flows. It can then sell these businesses for incredible profits.
It has been doing this for more than 30 years successfully, and it thinks that it’s possible to achieve long-term returns of 15-20% on its investments going forward!
Its high earnings growth leads to strong stock price appreciation. For example, in the past 12 months, the stock climbed 25%, and in the last three years, it’s climbed 67%.
BBU stock can be volatile because its earnings are unpredictable and lumpy. The graph below illustrates that the stock can fall off a cliff but recover swiftly, often within a few months.
BBU.UN data by YCharts.
Therefore, investors can more safely and quickly double their money by buying the growth stock whenever it experiences meaningful dips of 15-20%.
Double your money quicker by being a value investor and buying high-growth companies. If you can buy high-growth Brookfield Business Partners at a dip of at least 15%, you’re likely getting a huge bargain. Jump on the opportunity when it happens!
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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 Kay Ng owns shares of Brookfield Business Partners L.P. Limited Partnership Units and TOURMALINE OIL CORP.