Warren Buffett often quips that his favourite holding period is “forever.” That’s not as easy as it sounds. Finding stocks that you can own for decades at a time takes work, but the rewards can be enormous.
Consider Berkshire Hathaway, Buffett’s holding company. Shares produced doubled-digit annual returns for more than 30 years. A few thousand dollars would have become $1 million or more.
If you want to make millions from a small investment, the two stocks below are for you.
Invest in the new oil
If you invested in oil stocks in 1970, holding your investments over the next few decades, you would have made a killing. Even through turmoil and volatility, patience would have paid off big.
But the reign of big oil is over. BP released a report this year stating that global oil demand has already peaked. We may never reach 2019’s oil consumption levels again.
Of course, we’ll still be using oil for decades to come, but consumption will be offset by another energy source: renewables.
Over the last five years, $5 trillion was invested globally in renewable energy infrastructure. Over the next five years, the level of investment should more than double, surpassing $10 trillion.
As with oil, this energy boom will last decades, and there’s no better stock to take advantage than Brookfield Renewable (TSX:BEP.UN)(NYSE:BEP).
In many ways, Brookfield is primed to become the Exxon of renewables. It has an extensive portfolio of projects around the world, including solar, wind, hydro, and storage. It’s diversified across technologies and geography, with the team excelling at asset allocation.
The transition to renewables will generate countless societal benefits. This stock in particular will benefit shareholders.
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Double your money every year
What makes this company such a lucrative opportunity? Its e-commerce software business model is specifically tailored for rapid and sustained growth.
“Software is cheap and easy to distribute,” I recently explained. “To acquire another customer, all you need to do is send a download link. It doesn’t matter if the customer is in the same town or half a world away, they can be up and running in minutes.”
Better yet, software is often winner-takes-all. Think about how only a few companies dominate computer operating systems or online shopping. With a business model built for speed and size, Shopify stock is poised to increase in value for decades to come.
More millionaire-maker stocks
Shopify and Brookfield aren’t the only lucrative investments to buy right now. In fact, the best way to take advantage is to construct a diversified portfolio with several high-potential bets across multiple areas.
Energy and tech are certainly some of the bigger opportunities, but they’re not necessarily the biggest. Other stories are playing out right now that could persist for centuries, generating large fortunes for patient shareholders along the way. Be sure to build an extensive list of millionaire-maker stocks this these.
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.
Tom Gardner owns shares of Shopify. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares), Shopify, and Shopify and recommends the following options: short January 2021 $200 puts on Berkshire Hathaway (B shares) and long January 2021 $200 calls on Berkshire Hathaway (B shares). Ryan Vanzo has no position in any stocks mentioned.