There are many ways of becoming a millionaire by investing in stocks, including losing your status as a billionaire (and falling to the millionaire status) by investing in the wrong stocks. A common but risky way is to hunt for the right spike/bull market trends, but you have relatively sharp windows to enter and exit the position.
A more conservative and more viable approach is choosing reliable, consistent growers that have made plenty of investors millionaires in the past and (assuming they keep performing the same way or perform better) may continue to do so in the future.
A logistics giant
TFI International (TSX: TFII) was once just a small trucking company in Quebec and has now become a Canadian logistics giant, with operating companies and a footprint in Canada, the U.S., and even Mexico. Its portfolio of services and assets has become quite diversified, and the fleet includes a wide range of transportation vehicles.
The stock has been on the market for decades but took off after the Great Recession. The growth was already good, but in the post-pandemic market, the stock practically exploded.
Thanks to that rapid growth period, the stock has climbed over 420% in the last five years, and considering its fair valuation, the growth might continue. The pace wouldn’t be as rapid, but with enough time, it might be enough to make many investors millionaires.
A tech company
Tech stocks in Canada might be fast growers compared to many other sectors, but they are often more volatile as well. Hence, a handful of consistent growers/stable stocks stand out, and Descartes Systems Group (TSX: DSG) is one of them. While its performance isn’t a straight line, the stock has been going up for most of the past one-and-a-half decades.
That includes market-wide negative catalysts like the pandemic and 2020 market crash as well as sector-specific challenges. The stock has risen by about 788% in the last decade, which is enough to turn a capital of about $127,000 into a million-dollar nest egg in just a decade.
The company’s core business is supply chain and logistics solutions, and it has created an impressive logistics network.
An alternative financial company
goeasy (TSX: GSY) is a mid-cap company that has emerged as a giant in a niche financial market — i.e., people with bad credit. It started with a lease-to-own model for certain household items but took off with small, personal loans. The company has now grown a massive footprint — over 400 retail locations — and each year, it helps thousands of Canadians graduate to prime rates.
goeasy has also joined the ranks of the Aristocrats by growing its payouts for eight consecutive years quite generously. The current yield is decent at 2.5%, but it’s the 680% stock growth in the last decade that makes it a millionaire maker.
If the stock keeps that or a slightly stripped-down growth pace, it may help you become a millionaire in a couple of decades, assuming you invest the requisite capital.
Foolish takeaway
The three stocks have already made many millionaires and might continue to do so if the performance expectations are met or exceeded. They are stable and consistent growers, so a portfolio made up of these may not require regular adjustments. Two of the three are dividend payers, so you will also receive passive income.
