You don’t need a ton of capital to start investing in stocks. In fact, investing in the stock market is easier than ever. Commissions are cheap (and sometimes free) and many brokerages don’t require a minimum amount of capital.
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It’s easier than ever to buy and sell stocks
Notably, many brokerages offer partial share purchasing. That allows you to easily buy an affordable stake in highly valued stocks (like Constellation Software (TSX: CSU) with its +$4,300 share price). If you save and invest regularly, you can build a pretty substantial portfolio in no time.
If I was starting out with $2,000, here are four stocks I would look at adding today.
A software stock with a great heritage
Constellation might be too rich for many new investors, but its little baby brother, Topicus.com (TSXV: TOI) might be better suited. Topicus was spun-out out of Constellation a few years ago. It is its focused investment arm in Europe.
Like Constellation, Topicus acquires niche software businesses. It takes their resilient cash flows and then re-invests into more acquisitions. It’s a great formula for compounding.
Europe is a rich place to invest because of its diverse countries, geographies, governments, languages, and even currencies. There is no shortage of niche software players in Europe. The company has been on a roll with eight acquisitions since July and 15 acquisitions year to date.
The stock has recently pulled back. Any further drawdown and Topicus.com stock could be an attractive buy.
One of Canada’s fastest-growing companies
If you are looking for a smaller stock with considerable growth ahead, consider Propel Holdings (TSX: PRL). This stock is up 180% in 2024! However, the company has been delivering exceptional growth and the market has finally started to recognize it.
Over the past three years, revenues have compounded by 59% per year. Earnings per share have compounded by 40% per annum. It provides small loans to non-prime consumers. The lender uses an AI lending platform to quickly underwrite its loans.
Certainly, this is a higher risk, higher reward type investment. If you are looking for one high flyer in your portfolio, it’s a good bet.
A blue-chip company to hold for the long term
If you want a blue-chip anchor for your portfolio, Canadian Pacific Kansas City (TSX: CP) railroad is starting to look attractive. The company has made good progress integrating Kansas City Southern railroad. With the only rail line that connects Canada, the U.S., and Mexico, it has plenty of opportunities to grow.
CP has been able to quickly reduce debt. It is in a strong posture to invest in growth initiatives, but also to start returning capital back to shareholders. While the rail industry has some near-term challenges, you can pick this stock up on dips for a long-term hold.
A real estate stock with the hallmarks of a quality business
Colliers International Group (TSX: CIGI) is a steady compounder that is not on many people’s radar. It is known for its global commercial real estate brokerage business.
However, it has diversified to become a real estate and consulting services conglomerate. Also, it has built out a substantial asset management business some analysts believe could be a spin-out candidate in the coming years.
Colliers has many hallmarks of a high-quality business: A strong balance sheet, a highly invested management team, a great brand, and a strong acquisition platform.
Colliers’ stock has risen 71% in 2024. It is not the cheapest today. However, if it has any pullbacks in the remainder of 2024, it would be a great opportunity to add the stock.
