Building wealth is often associated with having a large amount of capital to invest. In reality, consistency can matter as much as the initial investment amount. Even a modest contribution of $25 a week can grow into a substantial portfolio over several decades, especially when you reinvest returns and let them compound.
For instance, investing $25 every week amounts to $1,300 a year. Without investment returns, that would total $13,000 after 10 years and $26,000 after 20 years.
The effect becomes more significant when you account for compounding. Assuming weekly contributions of $25 and an average annual return of 10%, the portfolio could grow to approximately $83,000 over 20 years. This is a hypothetical illustration, not a guaranteed outcome, since actual investment returns fluctuate and can be significantly higher or lower over different periods.
The broader lesson is that a long investment horizon gives relatively small, regular contributions plenty of time to grow. Moreover, investors have numerous stocks to choose from that can potentially deliver attractive long-term returns. For example, Bird Construction (TSX: BDT) and MDA Space (TSX: MDA) have compounded their shareholders’ returns over the long run.
Source: Getty Images
Bird Construction stock has delivered massive gains
Bird Construction’s shares have recorded a five-year compound annual growth rate (CAGR) of roughly 58%. Bird operates across industrial, building, and infrastructure construction and maintenance. This diversified exposure gives the company access to several areas where long-term capital spending could remain significant.
Key growth drivers include infrastructure, defence, healthcare, energy, critical minerals, and transportation. The continued expansion of artificial intelligence (AI) infrastructure could also create additional opportunities if demand for data centre construction continues to accelerate.
The company also has a significant backlog, providing visibility into future revenue and supporting continued growth. In addition, strategic acquisitions could strengthen Bird’s market presence and expand its operational capabilities.
These factors have contributed to the strong performance of Bird Construction’s shares, helping it deliver substantial gains over the past five years.
MDA Space outperformed the TSX
MDA Space stock has grown at a 22% CAGR over the past five years, outperforming the broader market index. The Canadian space technology company’s operations span Satellite Systems, Robotics & Space Operations, and Geointelligence. These businesses position MDA Space to benefit from several structural trends, including increasing satellite deployment, demand for connectivity, higher government and defence spending, and growing reliance on space-based intelligence.
The company has also expanded through acquisitions, including CLS and Blue Canyon Technologies. Such transactions can broaden technological capabilities and increase the markets the company can address.
MDA Space has also pointed to a sizeable opportunity pipeline, while its multibillion-dollar backlog provides visibility into future activity. All these factors have supported the rally in MDA Space stock.
The bottom line
Investing $25 a week will not make anyone wealthy overnight, but decades of consistent contributions can create a meaningful financial base. The potential impact becomes considerably larger when those contributions compound over time.
Companies such as Bird Construction and MDA Space demonstrate how exposure to long-term growth themes can complement a disciplined investment strategy. Ultimately, regular investing, a sufficiently long time horizon, diversification, and careful company analysis can matter more than starting with a large sum of money.
