2 Long-Term Growth Stocks to Buy and Hold for the Next Decade

Take a look at these two growth stocks for your investment portfolio as the market becomes increasingly expensive.

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Stock market investing has become increasingly popular in recent years as Canadians realize the importance of investing their money to get decent returns instead of letting their cash sit idly in their accounts. The low-interest rate environment has led to returns from interest and fixed-income assets lagging significantly behind rising inflation rates.

Canadian investors who have invested in the right Canadian growth stocks in the last decade and held onto their investments have seen the wealth growth potential that the TSX boasts, provided you buy shares of the right companies.

Today, I will discuss two such stocks that you could consider adding to your portfolio today and hold onto them for the next decade in order to realize significant wealth growth through capital gains.

Restaurant Brands International

Restaurant Brands International (TSX:QSR)(NYSE:QSR) is a $34.34 billion giant in the restaurant industry, boasting big names like Burger King, Tim Hortons, and Popeyes Louisiana Kitchen under its belt. The stock’s performance took a hit due to obvious reasons as the pandemic-fuelled restrictions hampered the sales of its fast-food chains.

However, the company’s long-term performance shows an impressive track record that could restore some faith in the company’s ability to provide decent returns in the long run.

The company has shown a decent recovery in the last few quarters as it adapted to the changing landscape. As pandemic-related restrictions slowly ease, RBI stock could be in for a massive boost on the stock market in the coming months. At writing, the stock is trading for $73.09 per share and is down by 3.77% year to date. The stock is down by 30% from its all-time high in 2019.

Investing in its shares right now could set you up for massive gains through capital appreciation in the coming years.

Shopify

Shopify (TSX:SHOP)(NYSE:SHOP) has become one of the best-performing long-term holdings for Canadians since its initial public offering (IPO) over six years ago. The top Canadian growth stock toppled the Royal Bank of Canada as the top equity security in terms of market capitalization. The massive $260.16 billion market capitalization giant has become a significant entity in just a few years of trading on the stock market.

At writing, Shopify stock is trading for $2,072.82 per share and is in no way a cheap stock to consider. Shopify stock’s share price is 50.36 times sales at its current levels, making it a very expensive stock to own. However, if there is one company that can grow into its expensive valuation, it is Shopify.

The e-commerce industry has boomed significantly during the pandemic, and Shopify has been one of the global leaders in the e-commerce space. As the industry continues to boom in the coming years, Shopify stock could soar to even greater heights.

Foolish takeaway

As with any investment, buying and holding onto growth stocks comes with its fair share of capital risk. The past performance of publicly-listed companies does not guarantee future returns. However, it might be possible to find ideal stock picks for long-term wealth growth by understanding the businesses you are considering and determining whether the industry trends favor long-term growth.

Restaurant Brands International stock and Shopify stock look well-positioned as long-term growth stocks that you could consider adding to your portfolio for this purpose.

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 Adam Othman has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Shopify. The Motley Fool recommends Restaurant Brands International Inc.

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