Turning $20,000 into $200,000 is the kind of goal that gets people excited, and for good reason. But getting there depends on time, risk tolerance, and strategy. You can’t control market timing, but you can control how you approach the goal.
Before you start, figure out your time horizon to see if you have the space to reach that $200,000 goal. Then think in terms of asset mix, not just stock picks. To grow aggressively, you’ll need exposure to multiple areas. Also, think about your risk-adjusted mindset, as big returns often come with volatility. And remember: this is a mental game. The longer you hold, the more your returns depend on behaviour, not brilliance. So, don’t go chasing trends when you rebalance your portfolio. With that, here are three core investments to consider.
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H
Hydro One (TSX: H) is a regulated electric utility in Ontario that runs transmission and distribution networks. There are quite a few benefits for those seeking to 10X their returns. Because it’s regulated, Hydro One offers predictable earnings and dividends, which can form a stable base in a portfolio. That stability can dampen volatility, allowing other higher-risk holdings to carry more of the growth load.
As electrification intensifies, regulated utilities that own core infrastructure may benefit from mandated investments. If market sentiment becomes more favourable to utility and clean-energy names or if Hydro One demonstrates growth beyond its regulated business, its valuation multiple might expand. Add in a 2.57% yield at writing, and it’s certainly one to buy and reinvest long term.
BEP
Then we have Brookfield Renewable Partners (TSX: BEP.UN), a higher-growth play, sure, but a cornerstone of stability in a more aggressive portfolio. BEP is a limited partnership that owns, operates, and develops renewable energy assets globally. The company has multiple deals around the world for expansion, including with Alphabet, bringing in large and stable clients. If the market continues to reprioritize clean energy and recognizes the undervaluation, BEP could see multiple expansion.
What’s more, while not profitable, numbers are improving. There was a 10% year-over-year rise in funds from operations (FFO) in the second quarter, which also shows operations are improving. Add in a stellar 5.3% dividend yield, and there is certainly enough here to see massive growth in the future.
GSY
Finally, we have goeasy (TSX: GSY), a Canadian alternative consumer finance company. This means goeasy serves a “non-prime” consumer base: people who have limited access to traditional credit. That’s a riskier borrower pool, but also one where margins tend to be higher if credit screening and losses are managed well. In fact, recent earnings saw $811 million in revenue and $284 million in net income, while still trading at just 7.33 times future earnings.
Analysts believe the future should see higher earnings per share (EPS) growth, so the current undervaluation could mean you’re getting one great deal, especially with a dividend yield at 3.66% that can be reinvested time and time again.
Bottom line
All three of these investments come with risks, certainly. But all of them are also strong long-term holds — ones that can be purchased and reinvested over time to create that $200,000 from $20,000 in years, not decades.
