3 Stocks to Buy for 3X Growth Within a Decade

There are a decent number of growth stocks that have a reasonable shot of growing your capital three times in a decade, either through a spike or consistent growth.

| More on:

While stock spikes that have the potential to double or triple your capital overnight seem very alluring, they are hard to predict, so it’s essential to be prepared to hold the right assets for the proper length of time.

And there are three such assets that should be on your radar if your growth goal is slightly ambitious — to triple the capital appreciation within a decade.

A payment solutions company

Nuvei (TSX:NVEI)(NASDAQ:NVEI) is a relatively new stock, and its inception overlapped with post-pandemic market recovery momentum. It started trading in September 2020 and rose 272% in about a year. But then came the correction, and the stock is currently quite near the point it started from.

However, this pace of growth, even if it was triggered by the overall market condition, indicates that the stock may have a decent growth pace when it gains traction (organically).

As a payment solutions company, it has excellent overlap with e-commerce and other digital businesses. The company facilitates over 530 alternative payment methods around the globe and deals with over 150 currencies (including cryptocurrencies), which shows the strength of its product portfolio.

Unlike its stock, its financials have only gone up in the last eight quarters, so when the stock starts growing and is backed by its strong financials, it may gain enough pace to triple its capital within a decade.

A software company

Constellation Software (TSX:CSU) is hard to beat if you are looking for something classic. The software company has been growing consistently for well over two decades. It has returned about 280% to its investors in the last five years alone, and if it can replicate that pace going forward, you may achieve that triple capital growth goal much earlier than a decade.

Constellation is all about acquisitions, and it’s currently made up of six different companies, all with their target markets. This gives Constellation Software a geographically and industrially diverse portfolio. Its reach is quite extensive, and the clientele is spread out to over 100 countries.

The stock is quite overpriced, which is its usual valuation state, but for a company with such a stellar growth history, this overvaluation is justified.

A crypto company

Three times the growth within a decade can come in various forms. You can either tie your capital to a consistent grower like Constellation or buy a volatile company like HIVE Blockchain (TSXV:HIVE)(NASDAQ:HVBT). Its volatility comes from the asset class it’s associated with — i.e., cryptocurrencies. And this volatility has its perks. The company has grown its value by over three times twice in the last five years.

Considering its history, if you can buy the dip and hold on to it, the company will offer phenomenal growth within three to four years, following a spike in the crypto demand. HIVE is one of the few crypto miners that are not just focused on Bitcoin. Still, it is mining Ethereum as well and uses 100% green energy to mine it, which forestalls any negative environmental considerations.

Foolish takeaway

All three growth stocks have very different types of potential. Constellation’s growth potential is proven and time-tested, whereas Nuvei’s is just a promise. HIVE, however, follows another asset class, and to track its growth potential, you will have to look at the assets it’s associated with.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool owns and recommends Bitcoin, Ethereum, and Nuvei Corporation. The Motley Fool recommends Constellation Software.

More on Tech Stocks

a-developer-typing-lines-of-ai-code-while-viewing-multiple-computer-monitors
Tech Stocks

Could Constellation Software Become the Next Berkshire Hathaway?

Constellation Software's (TSX:CSU) capital-allocation strategy is similar to that of Berkshire Hathaway (NYSE:BRK.B).

Read more »

cloud computing
Tech Stocks

3 No-Brainer Tech Stocks to Buy With $1,000 Right Now

These three Canadian tech stocks could be among the best growth opportunities in the market right now.

Read more »

happy woman throws cash
Tech Stocks

3 Growth Stocks That Could Be Long-Term Wealth Creators

These three growth stocks aim to grow their financials at a higher rate than the industry average, thus delivering superior…

Read more »

The virtual button with the letters AI in a circle hovering above a keyboard, about to be clicked by a cursor.
Tech Stocks

Is POET Technologies a Top AI Stock for Canadian Investors?

Canada has relatively few AI stocks, and the ones it has are different from American AI stocks in terms of…

Read more »

Rocket lift off through the clouds
Tech Stocks

2 Growth Stocks That Could Skyrocket in 2025 and Beyond

Wondering what types of stocks could rapidly rise in 2025? Check out these two stocks with substantial upside if they…

Read more »

up arrow on wooden blocks
Tech Stocks

The 3 Smartest Tech Stocks to Buy With $500 Right Now

Tech stocks can be seen as a bit risky, but these three have far less risk and more stability for…

Read more »

TFSA (Tax-Free Savings Account) on wooden blocks and Canadian one hundred dollar bills.
Tech Stocks

Shopify: A Must-Have Growth Stock for Your TFSA Now (and the Next 10 Years)

Shopify (TSX:SHOP) stock isn't just a top growth company, it's a titan worth owning in your decades-long TFSA fund.

Read more »

cloud computing
Tech Stocks

Best Stock to Buy Right Now: Manulife vs CIBC

Want the best stocks? These two are certainly the best options. But which is the better buy?

Read more »