One great thing about investing in the stock market is that you can track your portfolio each and every day. Unlike other sources of wealth generation, it can be difficult to see how much your assets are really worth. For instance, with real estate, you can always estimate the value of your home but you won’t really know how much you can get until you sell or appraise it.
With the stock market, we can see how much money we have on any given day. Tracking that performance over the long term can be a pleasant experience. If you take a more aggressive approach, for example, by investing in growth stocks, then there’s a chance you could see your portfolio rise even faster. By investing in the right growth stocks, you could even double your money faster than you think.
Although we don’t encourage short-term bets at The Motley Fool, I think there are excellent stocks out there that could double your money much faster than others. In this article, I’ll discuss a great growth stock that could double your money.
Don’t miss the boat on this company
Constellation Software (TSX:CSU) is one of my favourite Canadian stocks to cover. It’s a tremendous growth stock that I think could continue creating wealth for shareholders for many years. However, many Canadians worry that Constellation Software’s best days may be behind it. Those thoughts may be attributed to Constellation Software’s massive 20,000% gain since its initial public offering. If we believe in the Law of Large Numbers, those investors may have a reasonable thing to worry about.
If you also think Constellation Software’s best days are behind it but want to get in on a similar company, then consider investing in Topicus (TSXV:TOI). This company operates a very similar business to Constellation Software in that it acquires, builds, and manages vertical market software businesses. Topicus differentiates itself from Constellation Software by focusing on the highly fragmented European tech market.
By focusing on a specific region, Topicus can make itself an expert in acquisition within that area and build a reliable name for itself. For those who aren’t familiar with it, Topicus was once a subsidiary of Constellation Software. Although it operates as a standalone entity now, Constellation Software continues to have a hand in the business. Some of Topicus’s board of directors are executives from Constellation Software. That includes Constellation Software’s president and founder, Mark Leonard.
Foolish takeaway
Constellation Software is a great stock that has rewarded shareholders by generating 20,000% in returns since its initial public offering. While that may seem like an excellent thing, those high returns have caused some investors to think that Constellation Software’s best days are behind it. Hoping to find similar gains, Canadians are starting to look elsewhere.
Topicus could be a great alternative for investors looking for a smaller company with an equally promising future. With the backing of Constellation Software and a large, fragmented landscape ripe for acquisition ahead of it, Topicus is a stock that could double your money.
