3 Stocks to Buy for 3X Growth Within a Decade

There are a decent number of growth stocks that have a reasonable shot of growing your capital three times in a decade, either through a spike or consistent growth.

| More on:
Business success with growing, rising charts and businessman in background

Image source: Getty Images

While stock spikes that have the potential to double or triple your capital overnight seem very alluring, they are hard to predict, so it’s essential to be prepared to hold the right assets for the proper length of time.

And there are three such assets that should be on your radar if your growth goal is slightly ambitious — to triple the capital appreciation within a decade.

A payment solutions company

Nuvei (TSX:NVEI)(NASDAQ:NVEI) is a relatively new stock, and its inception overlapped with post-pandemic market recovery momentum. It started trading in September 2020 and rose 272% in about a year. But then came the correction, and the stock is currently quite near the point it started from.

However, this pace of growth, even if it was triggered by the overall market condition, indicates that the stock may have a decent growth pace when it gains traction (organically).

As a payment solutions company, it has excellent overlap with e-commerce and other digital businesses. The company facilitates over 530 alternative payment methods around the globe and deals with over 150 currencies (including cryptocurrencies), which shows the strength of its product portfolio.

Unlike its stock, its financials have only gone up in the last eight quarters, so when the stock starts growing and is backed by its strong financials, it may gain enough pace to triple its capital within a decade.

A software company

Constellation Software (TSX:CSU) is hard to beat if you are looking for something classic. The software company has been growing consistently for well over two decades. It has returned about 280% to its investors in the last five years alone, and if it can replicate that pace going forward, you may achieve that triple capital growth goal much earlier than a decade.

Constellation is all about acquisitions, and it’s currently made up of six different companies, all with their target markets. This gives Constellation Software a geographically and industrially diverse portfolio. Its reach is quite extensive, and the clientele is spread out to over 100 countries.

The stock is quite overpriced, which is its usual valuation state, but for a company with such a stellar growth history, this overvaluation is justified.

A crypto company

Three times the growth within a decade can come in various forms. You can either tie your capital to a consistent grower like Constellation or buy a volatile company like HIVE Blockchain (TSXV:HIVE)(NASDAQ:HVBT). Its volatility comes from the asset class it’s associated with — i.e., cryptocurrencies. And this volatility has its perks. The company has grown its value by over three times twice in the last five years.

Considering its history, if you can buy the dip and hold on to it, the company will offer phenomenal growth within three to four years, following a spike in the crypto demand. HIVE is one of the few crypto miners that are not just focused on Bitcoin. Still, it is mining Ethereum as well and uses 100% green energy to mine it, which forestalls any negative environmental considerations.

Foolish takeaway

All three growth stocks have very different types of potential. Constellation’s growth potential is proven and time-tested, whereas Nuvei’s is just a promise. HIVE, however, follows another asset class, and to track its growth potential, you will have to look at the assets it’s associated with.

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 and recommends Bitcoin, Ethereum, and Nuvei Corporation. The Motley Fool recommends Constellation Software.

More on Tech Stocks

A data center engineer works on a laptop at a server farm.
Tech Stocks

Psst … 2 Tech Stocks I’d Buy Before Shopify

Shopify (TSX:SHOP) stock is great -- don't get me wrong. But these two tech stocks are great too, with more…

Read more »

Technology, internet and networking, security concept
Tech Stocks

1 Top Canadian Cybersecurity Firm on the Frontline Against Cyber Threats

Here’s the best Canadian cybersecurity stock you can buy now to benefit from the expected significant surge in demand for…

Read more »

Credit card, online shopping, retail
Tech Stocks

Should You Buy Lightspeed Stock After Its Q4 Earnings?

Despite its volatility, I expect Lightspeed to outperform in the long run due to its healthy growth prospects and cheaper…

Read more »

Shopping and e-commerce
Tech Stocks

Shopify Stock: Is $100 the Next Stop?

Shopify (TSX:SHOP) stock may be headed to the $100 level over the longer term if things fall into the right…

Read more »

Young woman sat at laptop by a window
Tech Stocks

Open Text’s Cloud Kingdom: A SaaS Stock for the Long Haul?

Here's why Open Text (TSX:OTEX) could indeed be a software-as-a-service stock that long-term investors may want to consider right now.

Read more »

clock time
Tech Stocks

Is Now the Right Time to Buy Shopify Stock?

Amid another dip, Shopify stock might be worth buying right now for investors who missed the post-earnings surge.

Read more »

Tech Stocks

Is BlackBerry Stock a Buy for June 2023?

Given its multiple growth drivers, I expect the uptrend in BlackBerry’s stock price to continue.

Read more »

Index funds
Tech Stocks

1 Canadian Tech Stock I’d Buy Before Shopify Stock

Shopify stock is still a good option, but this other tech stock could be even better, especially as it's up…

Read more »