Turning $10,000 into $100,000 in the stock market might seem to be about luck. But trust me; it’s not. Instead, it’s about identifying Canadian stocks that can grow steadily for years, reinvesting profits wisely, and letting time do the heavy lifting. It might seem ambitious, but it’s achievable if you pick the right stocks and stay patient.
Considerations
The first thing to consider is scalability. Investors need Canadian stocks that can grow far beyond their current size without running into natural limits. That often means businesses operating in large or expanding markets. When you’re starting with $10,000, scalability is your ticket to compounding wealth, because it gives your investment room to multiply instead of just grow incrementally.
Next, look for profitability and reinvestment discipline. Canadian stocks that consistently generate strong free cash flow and reinvest it at high returns are the ones that compound most effectively. A company that earns 20% on reinvested capital doesn’t need huge sales growth to multiply shareholder value. Instead, it just needs to keep compounding internally.
Another critical factor is competitive advantage, or what Warren Buffett calls a “moat.” It could be a dominant brand, scale advantage, proprietary technology, or a network effect that keeps customers loyal. Moats protect profits and make earnings growth sustainable. A small company with a widening moat can deliver exponential returns as it scales. From there, what you’ll really need is patience.
CJT
Cargojet (TSX:CJT) is one of those rare Canadian stocks that combines a dominant market position, steady cash flow, and massive long-term growth potential. Cargojet plays a critical role in the country’s economy as the backbone of overnight air freight, handling time-sensitive deliveries for retailers, couriers, and e-commerce giants like Amazon. The Canadian stock operates in a niche with very high barriers to entry. The company essentially dominates Canada’s overnight air cargo network, operating flights between 16 major cities and holding long-term contracts with Canada Post, Purolator, UPS, and DHL.
One of the biggest growth drivers for Cargojet is the rise of e-commerce. Canadians are ordering more online than ever before, and businesses demand faster, more reliable delivery times. Every parcel that needs to move overnight relies on companies like Cargojet to make it happen. Even as the pandemic-driven boom has cooled, e-commerce remains structurally higher than it was pre-2020, meaning long-term demand for air freight isn’t going away. Cargojet has adapted well to this new baseline, investing in fleet expansion, international routes, and efficiency upgrades to capitalize on the trend.
The Canadian stock has been volatile in recent years, falling from its pandemic highs as demand normalized. But that pullback could be an opportunity for long-term investors. Cargojet now trades at just 8.9 times earnings, offering a 1.72% dividend yield. Should shares return to pandemic highs, that’s an upside of 64% at writing!
BAM
Brookfield Asset Management (TSX:BAM) is one of the most impressive long-term compounders in Canadian history. BAM has been one of the true engines of global wealth creation for decades. The Canadian stock manages hundreds of billions of dollars in real assets, including infrastructure, renewable energy, real estate, and private equity. BAM focuses on collecting steady management and performance fees no matter what’s happening in the broader economy.
BAM’s assets under management (AUM), now over $900 billion, continue to grow. That creates a self-reinforcing cycle of scale: more assets mean more fees, more profits, and more cash to reinvest in expanding the business. This model produces consistent, inflation-protected cash flow with little capital risk.
Financially, BAM is a powerhouse. It pays a modest but growing dividend currently yielding 3.2%. Furthermore, it trades at just 38 times earnings. Over the past decade, Brookfield’s ecosystem of companies has delivered some of the strongest long-term returns on the TSX, and BAM represents the purest way to own that growth story with lower risk. Should shares return to highs, that would be an easy upside of 13% at writing.
Bottom line
Turning $10,000 into $100,000 doesn’t have to be difficult or risky. Investors merely need strong companies and patience. And when it comes to finding two Canadian stock stars, Cargojet and BAM belong on your watchlist.
