The key to successful growth investing is identifying key trends before everyone else and then giving positions enough time to grow. Millennials are lucky, because they have the time to let positions grow over the coming decades. However, identifying the right trends to bet on could be a difficult task for many. In this article, I’ll discuss three investing themes millennials should go all-out on.
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An industry growing each day
Over the past decade, online retail has slowly penetrated the broader retail industry. However, the COVID-19 pandemic has done a lot in terms of accelerating its penetration. Because of the widespread business lockdowns, consumers were forced to adopt e-commerce. More than a year and a half into the pandemic, online retail has become the norm for many. As a result, companies like Shopify (TSX: SHOP)(NYSE:SHOP) have seen tremendous growth.
Last year, the company reported US$5.1 billion in sales over the Black Friday-Cyber Monday weekend. That represented a more than 75% increase over the year prior. This year, Shopify topped its Black Friday sales record, reporting US$2.9 billion in total transactions on Friday alone. That represents a 21% year-over-year increase. Although e-commerce growth rates may slow down in the coming years, there’s no denying that online retail is firmly a part of our everyday lives today and will continue to be in the future.
Powering tomorrow’s societies
Everywhere you look, it’s easy to see that cities are trying to shift towards clean energy. As a result, companies offering renewable utilities have attracted a lot of attention. In fact, there are many developments to watch for in the renewable energy space in the coming year. Investors can expect to see new technologies, business models, and sustainable growth as renewables continue to increase in penetration. As of today, the company I favour most in this industry is Brookfield Renewable (TSX: BEP.UN)(NYSE: BEP).
Brookfield Renewable is one of the largest producers of renewable energy in the world. Its portfolio has the capacity to generate about 21,000 MW of power. After the completion of its current construction projects, Brookfield Renewable estimates a total generation capacity of 56,000 MW. The company has continued to grow impressively over the past few years, and its stock has reflected that. Since the start of 2019, Brookfield Renewable stock has gained more than 130%. This year hasn’t been the greatest for Brookfield Renewable stock, but the futures of the company and the industry remain bright.
We’re moving towards a digital world
Investors should have realized by now that the world is becoming more digital every day. There are many new technologies arising which are poised to replace older systems that have been in place for decades. One example would be employee training programs. Until recently, many enterprises have used antiquated systems for employee training. Docebo (TSX: DCBO)(NASDAQ: DCBO) offers enterprises a cloud-based and AI-powered eLearning platform.
Using its software, training managers can assign, monitor, and modify training programs more easily. Docebo has also managed to land an integration into the Salesforce ecosystem of products, making this LMS platform even more attractive. Docebo has had a very volatile year, but it remains a top growth stock that investors should keep an eye on. As we continue to move towards a digital and remote work environment, Docebo could continue becoming an integral part of the business world.
