Investing for your retirement can be a fun, albeit daunting, journey. In order to create a comfortable retirement for yourself, investors will need to remain consistent and prudent for years. However, by investing in high-quality companies, you could set yourself up for major success. In this article, I’ll discuss three stocks that could help you achieve the goal of retiring with $1 million.
This is my favourite stock
I’d like to first note that past returns are no guarantee of future performance. However, when looking for $1 million stocks on the TSX, I think that list is quite small. Constellation Software (TSX:CSU) is a stock that has already accomplished that feat. Since its initial public offering in 2006, the stock has gained nearly 20,000%. That means if you’d invested $10,000 in the stock in 2006, you would have much more than $1 million today.
Despite those gains, Constellation Software continues to be a stock that I think could grow a lot more in the future. In fact, it has already gained 13% year to date. I believe Constellation Software’s dedication to growth and efficient capital allocation will drive this stock’s growth in the future.
Another great stock for your portfolio
Shopify (TSX:SHOP) is another stock that investors should consider buying today. I remain very surprised when I talk to friends or family who don’t invest, and they tell me they aren’t familiar with Shopify. This company provides merchants of all sizes with a platform and many of the tools necessary to operate online stores. Because of Shopify’s breadth of product offerings, it’s capable of catering to everyone from first-time entrepreneurs to large-cap enterprises.
As the e-commerce industry continues to grow, I believe Shopify could continue to reward shareholders. Today, there are a lot of consumers in North America and Europe that shop online. However, I believe the proportion of consumers who do will continue to increase in the future. In addition, if Shopify can continue to penetrate underrepresented markets, then its growth really has tons of opportunities to continue.
Investing in this company is like turning back the clock
Finally, investors should consider Topicus (TSXV:TOI) as a company that could help them reach their financial goals. Topicus is likely the least known company of the ones discussed here. However, I think its growth potential could be the greatest. Listed at a market cap of $9.5 billion, Topicus is quite small compared to Constellation Software and Shopify. According to the law of large numbers, that suggests that Topicus could grow faster than the other two companies over the coming years.
For those who are unaware, Topicus was once a subsidiary of Constellation Software. It now operates as its own entity, acquiring and building businesses in Europe. That’s a great place for it to focus on, as that market is highly fragmented and ripe for acquisition. In my opinion, investing in Topicus today could be like investing in Constellation Software over a decade ago. There are certainly some unknowns and risks; however, the potential here is huge.
