Where to Invest $500 in 2 Growth Stocks for Beginners Starting Small

Beginning to invest has never been easier. Here are two growth stocks to buy with $500 for a long-term portfolio.

| More on:
dividend growth for passive income

Source: Getty Images

It is easier than ever to begin investing in stocks today. Most discount brokerages offer fractional share purchases, and many are starting to offer free trading commissions. It just means that you don’t need a tonne of capital to get started. In fact, as little as $500 can get you started building an investment portfolio.

It’s easier than ever to start investing, but investing is never easy

Now, just because it is easy to start investing doesn’t mean investing is ever easy. This year alone is a testament that investing in stocks is a tough business. If you were a new investor in 2024, it seemed like stocks only ever go up. However, 2025 is a reminder that there are bear markets, too.

Every investor will be tested at some point. Sometimes, it is good to be tested early on. Also, bear markets can present great opportunities to buy stocks when they are cheap (or cheaper). If you are starting small, here are two growth stocks that could really deliver long term for your portfolio.

VitalHub: A Canadian software stock for growth

VitalHub (TSX:VHI) has been delivering really exceptional returns for shareholders as of late. Its stock is up 235% in the past three years and 443% in the past five years. It only has a market cap of $528 million, so there could still be plenty of growth ahead.

VitalHub provides specialized patient flow, patient management, and workplace efficiency solutions for the healthcare industry. Its stock price has excelled because it has delivered excellent financial results.

Revenues have risen by a 40% compounded annual growth rate (CAGR). Earnings before interest, taxes, depreciation, and amortization (EBITDA) have risen by a 39% CAGR. The company hit a cash flow inflection point a couple of years ago. The stock hasn’t looked back, and neither has the company.

It has made over 20 acquisitions in the past few years. However, it also has a development hub in Sri Lanka that helps it build and enhance the software that it offers cost-efficiently.

As of its fourth quarter, it had $56 million of cash. It just announced another acquisition in the U.K. for about $15 million.

Overall, this company has many hallmarks of a long-term compounder: a founder-led management team, a cash-rich balance sheet, services that benefit clients, and a great outlook for organic/acquisition growth.

Topicus.com: A tech stock with European exposure

Another growth stock a beginner may want to look at is Topicus.com (TSXV:TOI). With a market cap of $13 billion, it is much larger than VitalHub. While many growth stocks are down in 2025, Topicus has risen nearly 29% this year.

Topicus provides very niche software solutions to a variety of industries and sectors in Europe. In 2021, it was spun out of Constellation Software. It has very similar DNA.

It buys cheap software companies, reaps their cash flows, and invests in more software companies. It also has a strong development arm that has fuelled mid- to high single-digit organic growth.

Investors have flocked to Topicus for tech exposure outside of the United States. Its valuation is not cheap today. However, if it does sell off due to broader market volatility, it would be a great time to add to this stock for the long term.

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 Robin Brown has positions in Constellation Software, Topicus.com, and Vitalhub. The Motley Fool has positions in and recommends Topicus.com and Vitalhub. The Motley Fool recommends Constellation Software. The Motley Fool has a disclosure policy.

More on Stocks for Beginners

Man in fedora smiles into camera
Dividend Stocks

How I’d Build a $20,000 Retirement Portfolio With These 3 TSX Dividend All-Stars

If you're worried about returns and want to focus on dividends, these dividend stocks are the first to consider.

Read more »

e-commerce shopping getting a package
Dividend Stocks

Where I’d Put $1,000 Right Away in 2 Top Canadian Stocks for Growth

These two Canadian stocks are strong options and have been for decades, and that's not going to change anytime soon.

Read more »

A meter measures energy use.
Dividend Stocks

Where I’d Invest $15,000 in Top Utilities Stocks for Steady Income

These utility stocks are some of the top choices, but they aren't the usual group of investments.

Read more »

dividend growth for passive income
Stocks for Beginners

3 Unstoppable TSX Stocks Where I’d Invest $8,000 for Long-Term Growth

These TSX stocks have long proven their worth, and that's still true today for investors.

Read more »

how to save money
Dividend Stocks

The 1 TSX Stock I’d Buy for Monthly Income as Interest Rates Stay Higher for Longer

This dividend stock could be a huge winner in 2025, even as interest rates freeze.

Read more »

gas station, convenience store, gas pumps
Stocks for Beginners

2 Automotive Stocks to Buy and Hold for Transportation Transformation

Automotive stocks are looking a bit tough right now, but these two remain strong options.

Read more »

Canada day banner background design of flag
Stocks for Beginners

Where I’d Invest $7,000 in the Best Canadian Stocks Right Now for Long-Term Growth

Wondering how to invest your $7,000 TFSA contribution in 2025? These Canadian stocks could be solid long-term winners.

Read more »

up arrow on wooden blocks
Dividend Stocks

The Top TSX Stocks to Buy Now as Canadians Shift Cash Back Home

These two TSX stocks remain strong options for investors thinking long term.

Read more »