As you save up your hard-earned money with the intention of investing in the stock market and putting it back to work for you, we all dream of earning significant returns to reach financial freedom. And while it’s a well-known fact that investing for the long haul is essential to help realize these massive gains, it’s also essential to find the highest quality stocks with millionaire-maker potential.
Often, for new investors, one of the biggest mistakes is looking for the hottest stocks at the time and trying to get rich quickly, hoping for a rapid increase in the value of these stocks.
This is incredibly risky, though. Typically, the more volatile a stock is and the quicker it can gain value, the more risky it is, making it likely that it will fall in value just as quickly as it was rising.
That’s why, instead of looking for the hottest stocks on the market, we need to look for the best companies to buy. These are companies that have a significant competitive advantage in their industry and can grow rapidly, but more importantly, can grow consistently for years to come.
And when you invest for the long haul, the inevitable pullbacks that stocks may experience—whether due to their own setbacks or broader economic impacts—can be easily mitigated. Over time, these temporary declines will become mere bumps in the road, viewed against the backdrop of their overall long-term growth trajectory.
So, with that in mind, here are two of the best stocks on the TSX that possess millionaire-maker potential.
A massive Canadian growth stock that’s gained 780% in the last decade
If you’re looking for stocks with millionaire-maker potential, there’s no question that Dollarama (TSX:DOL), one of the best growth stocks on the TSX, is a top pick to consider.
Dollarama has grown rapidly and continues to have significant potential going forward due to both its industry and the consistent execution of its management team.
As a discount retailer, the demand for Dollarama’s products is essentially always growing. In times of economic turmoil, more and more consumers turn to Dollarama to buy their essential household staples to help save money and stretch their budgets.
However, even in more prosperous times, the demand for goods stays relatively high since the more staples you can buy at discounted rates, the more money consumers have to spend on discretionary goods and services, such as luxury items or vacations.
Plus, when you consider the impressive job its management team has done growing its brand, building out its stores, and establishing an efficient supply chain, it’s unsurprising that the company has had so much success consistently growing both its revenue and profitability.
And now, as it continues to expand and its growth potential inevitably starts to slow down, Dollarama is also looking outside of Canada for more growth with its investment in the Latin-American dollar store chain Dollarcity.
So, while the stock has expanded tremendously in the last decade, growing investors’ capital at a compounded annual growth rate of roughly 24.3%, it continues to have significant potential in the coming years and is one of the highest potential millionaire-maker stocks on the TSX.
A lesser-known stock with millionaire-maker potential
In general, the smaller the company, the more potential it has to grow rapidly and be a millionaire-maker stock. If that’s what you’re looking for, one of the best to consider is VeritcalScope Holdings (TSX:FORA).
VerticalScope is a Canadian tech company specializing in digital media and online communities. It owns and operates a portfolio of online forums and content platforms across various categories, including automotive, sports, technology, and outdoor activities.
So far this year, the stock is already up 97% year to date, yet its market cap is still less than $200 million, giving it a tonne of room to grow rapidly and become a potential millionaire-maker stock.
The fact that it operates numerous online communities allows it to leverage data analytics and optimize monetization strategies such as targeted advertising and subscription-based revenue models.
Therefore, with its innovative approach and expanding reach, VerticalScope is well-positioned to capitalize on the growing demand for niche online platforms and generate substantial long-term returns for investors, making it one of the top stocks on the TSX with millionaire-maker potential.
