TFSA: Invest in These 2 Stocks for a Shot at $1 Million

Are you looking for stocks that could get you $1 million? Here are two top picks!

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For many investors, building a portfolio to $1 million has long been a major benchmark. However, it should be noted that this is no easy feat to do. It requires many years of prudent stock picking, consistent investing, and time to allow those investments to grow. In addition, by investing in a Tax-Free Savings Account (TFSA), investors could help accelerate their way to that $1 million portfolio. In this article, I’ll discuss two great TSX stocks that could help you get there.

This blue-chip stock could be a major winner moving forward

Constellation Software (TSX:CSU) is a blue-chip stock through and through. This company is listed on the TSX 60 as one of Canada’s leading companies in an important industry. In addition, it’s one of the largest tech conglomerates in the country, with a market cap of nearly $60 billion. However, despite its large size, Constellation Software continues to grow at a fast pace. I attribute that consistent growth to its adaptability, which I’ll discuss further in a little bit.

First, an overview of the company. As mentioned previously, Constellation Software is a tech conglomerate. It’s become sort of a legendary company for acquiring vertical market software (VMS) businesses and helping those acquisitions turn into exceptional business units. In fact, its business model has been so successful that the company has had to become wary of copycat businesses.

For much of its history, Constellation Software has focused on small- and medium-sized VMS businesses for acquisition. However, the company recognizes that further and continued growth will require that it change its business model slightly. Therefore, in 2021, Constellation Software’s founder and president, Mark Leonard, announced that the company would finally begin targeting large VMS businesses for acquisition.

The most recent acquisition that I believe investors should note is the WideOrbit transaction, which resulted in Constellation Software spinning off its subsidiary Lumine Group. Acquisitions such as this demonstrate Constellation Software’s adaptability and give me confidence that this massive stock market winner can continue to build on its all-time gain of more than 15,000%.

I’m still very bullish on this stock

Many investors are seemingly done with Shopify (TSX:SHOP), because of the rough year it had in 2022. This was largely due to the company laying off more than 10% of its staff. To make matters worse, Shopify announced in May that it would once again be undergoing a major layoff, this time cutting 20% of its workforce.

However, despite those struggles, it’s clear that Shopify remains one of the largest players in the rapidly growing e-commerce industry. With over a million merchants using its platform, Shopify has a very firm grasp of that global industry, helping merchants of all sizes operate online stores.

In the second quarter (Q2) of 2023, Shopify reported its revenue had increased to US$1.7 billion. That represents a 31% year-over-year increase in that metric. In addition, its gross profit grew to US$835 million, indicating a 27% year-over-year rise in that metric. It’s clear that Shopify’s business continues to grow and operate at a high level, despite the struggles that may appear on the surface. I believe this is a stock that all growth-minded investors should consider holding in their TFSA today.

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 Jed Lloren has positions in Constellation Software, Lumine Group, and Shopify. The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends Constellation Software. The Motley Fool has a disclosure policy.

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