Creating a million-dollar nest egg is easier than most people would think. The keys are to start investing as early as possible and then choosing the right stocks. Holding on to these stocks for the long term is also crucial.
Here are two stocks that could help you turn $100,000 into $1 million within a reasonable timeframe.
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A financial stock
Goeasy (TSX:GSY) is one of the most potent growth stocks in the Canadian financial sector. It’s an alternative financial company and one of the largest businesses that helps Canadians who have weak credit obtain loans.
Customers who can’t get a loan from a conventional bank often turn to dubious sources for their financial needs. Companies like goeasy offer a better alternative. And as one of the most significant players in this niche market, goeasy has experienced rapid, substantial growth — with the stock gaining roughly 660% in the past decade alone.
This 600+% gain includes a significant correction phase from which the stock is currently reeling. Even if goeasy maintains this pace, the stock could turn $100,000 in capital into $1 million in less than two decades.
And if you take dividend-based returns into account, the timeline would be even shorter — less than 15 years — considering the stock’s overall returns of 880%.
A tech stock
Goeasy offers a reasonable enough timeline for such substantial growth, but if you are looking for even more rapid returns, a tech stock like Galaxy Digital Holdings (TSX:GLXY) could be a great choice for aggressive investors.
Although it’s technically a crypto stock, it’s pretty different from other members of that market segment.
The most significant difference is Galaxy’s business model. Instead of mining crypto assets, the company provides financial services to digital asset holders, such as exposure to global markets and asset management. It also offers digital management services.
The stock seems quite undervalued today considering its price-to-earnings ratio of just 4.65. What’s even more impressive is that it has maintained such a low P/E ratio despite the stock’s phenomenal growth in the past 12 months — gaining about 259%. Assuming the stock can hold this pace, it could help you hit $1 million from an initial investment of $100,000 in about four years.
Foolish takeaway
If you buy both stocks (with your $100,000 investment divided evenly between the two), you could significantly improve the prospective timeline. Galaxy Digital offers an expedited growth pace while Goeasy brings more stability to the mix, not to mention the dividends that are an additional perk of investing in the company.
