Many investors dream of achieving a million-dollar portfolio. Although it’ll take a lot of time and discipline in order to achieve that, it’s not as impossible as you may think. One way that investors can help achieve that lofty goal is by investing in solid growth stocks. By putting your money in companies that have shown that they can generate returns faster than the broader market, investors could accelerate their way to a $1 million portfolio.
In this article, I’ll discuss two growth stocks that could help you retire a millionaire.
I believe in this tech stock
Shopify (TSX:SHOP) is the first stock that investors should consider buying today. This company is a leader within global e-commerce space. It provides merchants of all sizes with a platform and many of the tools necessary to operate online stores. In my opinion, what stands out about Shopify is its amazing inclusivity. The company has been able to cater to first-time entrepreneurs and large-cap enterprises alike. That ability to serve everyone in the e-commerce space could help it stay ahead of its peers in the coming years.
In the third quarter (Q3) of 2022, Shopify reported US$1.4 billion in quarterly revenue. That represents a 22% year-over-year increase. This performance was driven by more than US$46 billion of merchandise value passing through Shopify’s platforms. With Shopify continuing to expand its enterprise partnership network, merchants will have every opportunity to appear in front of consumers. That bodes well for Shopify’s future.
Many investors have fixated on Shopify’s struggles this year. Of course, it’s hard to ignore the fact that Shopify needed to lay off more than 10% of its workforce. In addition, the global economy hasn’t been the kindest to consumers. However, looking at the big picture, online shopping is here to stay. There aren’t many companies that are able to do what Shopify’s doing, and that’s what makes this company such an interesting one to invest in.
This stock could be a strong performer over the coming decade
If you’re looking for a mid-cap stock to add to your portfolio, then consider Topicus.com (TSXV:TOI). This company acquires vertical market software (VMS) businesses. What separates it from similar companies is that it focuses on the European tech market. This is advantageous for many reasons.
First, by focusing on a specific region, it allows Topicus to specialize in that area, perhaps allowing it to learn tricks of the trade that are specific to Europe. Second, it allows Topicus to establish trust and credibility with businesses operating in that region. This could help Topicus when it comes time to approach a business for acquisition.
Finally, focusing on the European tech market is great for Topicus in a financial sense. Generally speaking, European tech businesses face far less pressure from venture capitalists. This could allow Topicus to secure acquisitions at more attractive valuations.
This year, Topicus has managed to acquire more than 20 VMS businesses. This tells me that the company is following an aggressive merger and acquisition strategy. Time will tell if these acquisitions have all been good decisions on Topicus’s part; however, the fact that it has a long history with Constellation Software gives me a lot of reassurance in that regard.
