It is not uncommon for new investors to begin their journey with smaller investments. It is always smart to dip your toes in the water to see how it is before you dive in. You get to learn about how everything works while barely getting your feet wet. Investors who have been in it for longer but have a more conservative approach also stick to making smaller investments because they are safer for their capital.
A small investment doesn’t necessarily mean you can’t make a lot of money. The market has been going through rapid changes amid the pandemic, opening up several exciting opportunities. While not guaranteed, some of these situational changes could provide you with massive returns on the stock market, provided you make the right investments.
I will discuss two stocks that you could consider adding to your portfolio to possibly double your returns on investment.
A stock for an increasingly digital world
The pandemic forced most people to stay at home all the time. An already increasingly digital world saw a rapid acceleration to its reliance on technology for everything from online shopping to business operations.
Docebo Inc. (TSX: DCBO)(NASDAQ: DCBO) is an excellent company to take advantage of the digital migration. The company offers enterprises a cloud-based and AI-powered eLearning platform. Through its software, training managers at enterprise-level companies can significantly improve their training activities to boost efficiency and reduce their overall costs.
The stock is not having an easy time on the stock market, falling 38% since the start of 2021. However, its current valuation is still more than 260% from a year ago. The stock is suffering right now because it cannot sustain its mind-blowing returns from last year but has excellent potential for growth in the future at its discounted share prices.
A game-changing railway
When I talk about the railways in Canada, Canada National Railway is typically the stock I discuss because it is the more significant railway between CNR and Canadian Pacific Railway (TSX: CP)(NYSE: CP). However, I believe that Canadian Pacific Railway could provide investors with an interesting investment opportunity for wealth growth in the coming years.
The company announced acquiring the Central Maine and Quebec Railway, allowing the railway network to extend to the Atlantic region. Canadian Pacific recently announced that it is buying Kansas City Southern. This move, once completed, will lead to the creation of the first railway network that connects Canada, the U.S., and Mexico.
At writing, the stock is trading for 1.15% higher year to date. Its growth over the last five years is almost 160% at its current valuation. Successfully expanding its reach to all three countries could mean massive capital growth for the stock in the long run.
Foolish takeaway
Whether you are a new investor or a seasoned veteran, becoming wealthy is all about finding the best opportunities on the stock market. None of your investments “guarantee” to double your investment. However, you can still find investments with the greatest potential to achieve that goal. Docebo and Canadian Pacific Railway seem ideal assets to consider for this purpose.
