Many investors dream of the day their investment portfolio reaches $1 million. For a very long time, that’s been the benchmark that investors have been hoping to hit. While it’s mostly for the prestige of being labelled a millionaire, there’s certainly no denying that someone with a portfolio of that size is doing quite well.
Fortunately, there are stocks in both Canada and the United States that have managed to turn everyday investors into millionaires. In this article, I’ll discuss one stock from each country that Canadian investors should consider buying today. I believe both stocks could continue to make more millionaires as time goes on.
The reason I’m choosing to split this article between Canadian and American stocks is because Canadian investors should be trying to diversify their portfolios. By keeping in mind that American stocks are an option too, perhaps readers will start to really consider companies on the other side of the border. Without further ado, here are two magnificent stocks to buy today!
The Canadian stock you should buy
When looking at Canadian stocks that have created millionaires, Constellation Software (TSX: CSU) stands out as the most obvious one. While this may be a great company, many first-time readers or new investors may have never heard of it.
That’s because Constellation Software doesn’t operate a business that the vast majority of Canadians will interact with in their everyday lives. This company operates in the background, acquiring vertical market software (VMS) businesses.
As mentioned earlier, this is one of the clearest examples of a stock creating millionaires. Take an investment of $10,000 made around October 2007, for example. If you had kept all of your shares, you would’ve seen a total return of about 18,400%. That means your $10,000 would’ve turned into nearly $1.85 million. That ‘s an incredible return and is certainly life changing. If you had bought even more shares over the years, think about how much you could’ve generated.
An American millionaire-making stock
On the American side of things, Canadians should really take a hard look at Coca-Cola (NYSE: KO). This is a company that needs very little introduction. Obviously, this is the company behind the world-famous Coke beverage. However, it’s so much more than just that. In addition to Coke, Coca-Cola is responsible for many very well-known brands, such as Sprite and Fanta, Minute Maid, Smartwater, Powerade, and many more.
Although Coca-Cola doesn’t operate a very exciting business, its stability is what should attract investors. Take any given day, there’s a very good chance you’ll come across someone drinking one of their beverages. Coca-Cola’s footing in the beverage industry is unmatched.
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If you had bought 1,200 shares on December 31, 1999, it would have cost you about US$57,000. While that may sound like a lot, consider that those 1,200 shares would be worth more than US$1,030,000 today. That’s a total return of more than 1700% in just over two decades. I strongly believe Coca-Cola could continue to create many more millionaires over the next decades.
