When growth investors look for investment opportunities, they tend to gravitate towards small-cap stocks. However, blue-chip companies can often be excellent sources of growth. In fact, this year, a handful of blue-chip stocks greatly outperformed some of the more popular growth stocks. In this article, I’ll discuss how much you’d have if you invested $10,000 in three top TSX stocks.
A growth machine that isn’t slowing down
Constellation Software (TSX:CSU) stock has grown at a CAGR of nearly 37% since its IPO in May 2006. Investors that invested $10,000 then would be millionaires today. However, what would that position look like if you’d invested that same amount at the start of this year? Year to date, Constellation Software stock has gained nearly 42%. That means a $10,000 investment would be worth $14,182 today. That performance is also about two times better than that of the TSX, which has gained 21%.
Constellation Software is an acquirer of vertical market software companies. Under the leadership of Mark Leonard, the company aims to help turn the acquired companies into outstanding businesses. Thus far, the formula that Constellation Software has followed with respect to acquiring and coaching has proven successful. It now hopes to adapt its strategy to the acquisition of large VMS companies. This could be a major catalyst for Constellation Software stock in the future.
This financial company continues to compound wealth
One company that I wish I had pulled the trigger on last year is Brookfield Asset Management (TSX:BAM.A)(NYSE:BAM). I’ve been very impressed by the company ever since I first learned about it when I started investing. However, it always seemed to get pushed aside in favour of small-cap stocks like I mentioned earlier.
This year, Brookfield Asset Management has gained about 53%. That means a $10,000 investment would be worth $15,309 today. This is a very impressive return on investment and could continue into the future. Earlier this year, Brookfield announced its plans to partner with Tesla to develop a large-scale sustainable neighbourhood. Like Constellation Software, this decision could end up being a major catalyst for Brookfield stock if successful.
How has Canada’s poster growth stock performed?
Many Canadian growth investors, me included, are big fans of Shopify (TSX:SHOP)(NYSE:SHOP). It’s easy to see why. The company is a global enabler of the e-commerce industry. After five years of amazing returns, shareholders were hoping to see continued success for Shopify stock this year. However, this year has been very slow by Shopify’s standards. Shopify stock has gained nearly 30% year to date. That means a $10,000 investment would be worth $12,989.
This return is noticeably less than that of Constellation Software and Brookfield Asset Management. However, the company has a lot going for it, and I believe there’s still a lot of growth to be had in the future. Shopify now attracts more customers than Amazon and is continuing to grow its network of enterprise partnerships. This isn’t the end of the story for Shopify stock.
