A lot of people do not like investing with limited capital. They stockpile their savings until they have a sizeable enough sum to invest with. But whatever savings you keep as cash are vulnerable to inflation — the silent tax that devalues your wealth kept in cash. One way to ensure that your savings are not at the mercy of inflation is to invest them as soon as possible, even if you have as little as $25 in savings.
An iron ore company
Champion Iron (TSX:CIA) is an Australian iron ore company with all three of its flagship projects (two of which are in Quebec) and its exploration projects in Canada, hence the cross-listing. The exploration projects it’s developing are quite rich in mineral resources and may secure the company’s iron ore production for decades.
The stock is currently trading at $4.5 per share, so you can at least get five whole shares of the company for just $25. The price is heavily discounted at the moment (38% from its 2022 peak) and is moving upward along with the rest of the market.
The price is still relatively high compared to the pre-pandemic level, but the current valuation is very modest. Iron ore prices are soaring right now, but the outlook is still clouded, primarily due to uncertainty regarding demand in China.
A biotech company
BELLUS Health (TSX:BLU) is a clinical-stage biotech company, meaning its products/proposed therapies are approved for human testing in a clinical setting. This represents one of the latter stages in the development of a specific drug/therapy.
And if it’s a success and is picked up by a pharmaceutical company (which actually manufactures the final product), Bellus will earn back what it has invested in developing it (and more) through its intellectual property rights.
The company’s current focus is BLU-5937, a drug that can potentially treat chronic cough and may be helpful for other hypersensitization-related disorders. It’s a promising pharmaceutical prospect, and considering the past performance of Bellus stock, the company is also a profitable investment.
It has grown over 250% in the last 12 months, and the pace is in line with the stock’s pre-pandemic growth. At $12.5 per share, you can buy two company shares for $25.
A tech stock
A tech stock you might consider buying for $25 is Converge Technology Solutions (TSX:CTS), currently trading at $5.9 per share, and you can buy around four shares with the capital on hand. The company has an impressive footprint though most of its “reach” is concentrated in North America. It offers various tech solutions, including advanced analytics, cybersecurity, and cloud services.
Like most other tech stocks, the stock experienced robust post-pandemic growth, and its market value has risen by over 1,400% in less than two years. Then it went through a brutal correction phase and is still trading at a price 51% down from its last peak.
But it’s going upwards now, and even if a market-wide recovery drives the growth, you can still double your capital if the stock just reaches its former peak.
The TSX bear market phase, which lasted between April and mid-July, seems to be over now. The market is recovering at a slightly faster pace than it fell at. If it’s the start of a long-term bull market that may last well past 2022, you may consider taking advantage of the currently available discounts.