When we think of success as an investor in the stock market, Warren Buffett is the first name that comes to mind. The Oracle of Omaha has pulled off some fantastic trades throughout his investment career that have made him one of the most successful investors ever.
The 90-year-old stock market investing guru’s company Berkshire Hathaway has averaged a 20.3% annual return in the last five decades. If you invested US$100 in the company in 1965, the amount would be worth more than US$2.7 million by December 31, 2020 for an aggregate return of more than 2,700,00%.
I will discuss one of the most significant stocks in Buffett’s investment portfolio and a Canadian equivalent you can consider adding to yours.
Apples and only apples
Buffett is known for investing in stocks whose business he can understand. That is the reason he stayed away from tech stocks for the longest time. However, the Oracle of Omaha made an exception when he decided to invest in Apple (NASDAQ: AAPL). His investment in the tech stock is among his most significant holdings.
Apple accounts for almost half of Buffett’s invested assets and has generated nearly US$80 billion in unrealized gains for the billionaire investor without dividends. Buffett recognized the immense long-term potential of Apple since it remains the top smartphone brand in the country.
Buffett continues to remain invested in the stock. Apple’s plans could result in further gains for Warren Buffett with the rollout of 5G-enabled smartphones.
Canadian tech stock to consider
Canadian investors can call Shopify Inc. (TSX: SHOP)(NYSE:SHOP) the blue-eyed Canadian darling stock. The Ottawa-based business is a cloud-based multi-channel commerce platform that has provided significant growth for small- to medium-sized businesses in Canada and worldwide.
The company’s valuation has been increasing nonstop for several years. Shopify is up by almost 160% in 2020 alone. In the last five years, Shopify has grown by more than 3,150%. Investors of the stock have become far wealthier than they were due to its immense growth in such a short time.
Shopify is more than a turnkey platform for its investors. The company uses AI for smarter advertising and marketing, allowing its clients to enjoy much more significant growth. Shopify is a global leader in its sector, and the explosive stock seems likely to grow further with passing time.
Foolish takeaway
As more and more businesses move to the digital realm, companies like Shopify stand to gain the most from the digital migration. While Buffett has not invested in Shopify, the Canadian tech stock looks like an ideal stock to consider. Apple is far beyond the reach of many investors. Shopify’s valuation also seems too much, but the company has the potential for further growth.
Consider investing in the high-growth stock for its massive millionaire-maker potential.
