Becoming a millionaire is a fantasy many regular people dream of, but most people resign themselves to thinking that it is nothing more than a pipe dream. However, stock market investing can give you the opportunities you need to become one. You must have a long investment horizon, patience, and a lot of financial discipline to use stock market investing for this purpose.
Besides these, you must identify assets that can give you the potential for the kind of returns necessary to achieve financial freedom. Theoretically, you can turn a $100,000 into a $1,000,000 investment in around a decade. Today, I will discuss two TSX stocks that can be a good fit if you’re on the journey to build a millionaire-maker self-directed investment portfolio.
Source: Getty Images
5N Plus
5N Plus Inc. (TSX:VNP) is a $1.7 billion market-capitalization company that produces performance materials and specialty semiconductors. This is a business providing ultra-pure materials that its clients rely on for performance and sustainability in their own products. It has become the leading supplier for critical materials across Europe and in the US, particularly in the terrestrial renewable energy and aerospace sectors.
As of this writing, VNP stock trades for $19.34 per share, up by 130.8% in the last 12 months, and by 431.3% in the last 5 years. From February 2016 to now, VNP stock has returned over 1,200% returns in capital gains. This would mean that $100,000 invested in VNP stock 10 years ago would be over $1,200,000 right now.
While the same growth might not happen from this point over the decade, growing demand and long-term tailwinds mean that VNP stock still has plenty of growth to offer.
Brookfield Infrastructure Partners
Brookfield Infrastructure Partners LP (TSX:BIP.UN) is a company offering critical infrastructure to match the importance of the critical materials that VNP stock offers. Brookfield Infrastructure is a $22.3 billion market-cap global infrastructure company that owns and operates high-quality and long-life assets across several segments, including data, midstream, transport, and utilities.
Where VNP stock might come with a greater degree of risk, Brookfield Infrastructure offers resilience and diversification. The company’s long-term contracts with inflation-linked assets virtually guarantee a consistency in its dividends. Brookfield keeps acquiring more utility companies to further strengthen its balance sheet and financial performance.
As of this writing, BUP.UN stock trades for $48.35 per share. Around this time, 10 years ago, it was trading for up to $20 per share. While it might not be 10-fold returns, the company’s forward-thinking approach might help it continue delivering multi-bagger returns to shareholders.
Foolish takeaway
Through the power of compounding, a $100,000 portfolio of TSX stocks can turn into $1,000,000. 5N Plus stock offers the potential for substantial capital gains, and Brookfield Infrastructure is a blue-chip stock that has the kind of high yield and dividend growth to inject sustainability into that growth.
As part of a broader and well-balanced portfolio geared toward growth, these two can be excellent foundational holdings to consider.
