Investing in these 3 stocks can now make you a millionaire


For almost all of us, playing for a professional sports team or writing a best-selling book or winning an Academy Award is just a pipe dream – it is unlikely to happen. But still some amazing life achievements are doing Within our understanding – such as retiring a millionaire.

Given enough time and effective savings, most of us can become millionaires, and we can achieve that simply by investing in the overall stock market – perhaps through a low-fee S&P 500 index fund. Your portfolio can grow extra quickly, however, if you include some companies that are growing very fast (and continue to do so).

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A million dollars rising

Before naming any promising companies, here’s a look at what to do for a million dollars. It all depends on three factors:

Your investment deadline

Obviously, the longer your investments can increase, the larger your nest egg will become. This is why it is best to start early in your 20s as well – as you can also allow yourself to retire early.

Growth rate of your investment

You cannot achieve millionaire status even if you save and invest aggressively for decades, but your money only grows by 1% or 2%. The stock market has achieved an annual profit of close to 10% over several decades. This is a good target to shoot, although the market may be below average (or higher) Your Investment Period.

How much do you invest

In the end, how much you invest also matters a lot. The table below shows how much you can earn by regularly saving different amounts over different periods of time:

Growing at the rate of 8%

$ 10,000 invested annually

Annual investment of $ 15,000

Annual investment of $ 20,000

5 year

$ 63,359

$ 95,039

$ 126,718

10 years

$ 156,455

$ 234,683

$ 312,910

15 years

$ 293,243

$ 439,865

$ 586,486

20 years

$ 494,229

$ 741,344

$ 988,458

25 years

$ 789,544

$ 1,184,316

$ 1,579,088

30 years

$ 1,223,459

$ 1,835,189

$ 2,446,918

Data Source: Calculation by author.

This table assumes an 8% average annual growth rate, which you can expect to achieve with long-term index fund investment. Below are three companies to consider investing in, which will help you become a millionaire from retirement. Each has grown more rapidly than the overall market, and is ready to do so.

1. Amazon.com

Online commerce juggling Amazon.Com (NASDAQ: AMZN) For a long time is clearly growing in a fast clip. The 20-year average annual growth rate in its stock price was recently 26.3% – enough to invest $ 10,000 into $ 1 million. This can be as difficult for companies as they have done in the past, once they grow up, but over the past decade, Amazon’s average annual growth rate has been 33.8%. (To compare, the S&P 500 averaged 6.9% and 13.9% respectively (with dividend reinvestment) over the past 20 and 10 years. Nobody expected an average annual profit of 25% or more over the next decade But Amazon offers many reasons to expect an increase of market beating for the future.

For example, it is firing on all cylinders during the epidemic, with net sales rising 37% in the third quarter from $ 96 billion to $ 96 billion, while net income tripled. The company has added too many workers and plans to add 100,000 more permanent workers, who will receive at least the company’s minimum wage of $ 15 per hour. While many, if not most, people associate it with their online marketplace offerings, one of its biggest cash cows these days is its cloud-computing platform, Amazon Web Services (AWS), which grew to 29 in the third quarter. % Has increased to $ 11.6 billion. , And claims 33% market share in its industry.

A person in a suit and tie is handing a wager of cash to another.

Image Source: Getty Image

2. PayPal

Paypal (NASDAQ: PYPL) It is another exceptional performer since the annual growth rate of 37.1%, as it was far from it Ebay In the summer of 2015. You probably believe that this is a very large financial services company, because every purchase you make is an online payment option. But you might not know How Big business. For starters, its market value was recently $ 241 billion – topping recent market value Coco cola, Netflix, And AT&T And is more than twice Wells Fargo or Citigroup.

PayPal serves some 361 million active users globally (approximately the population of the United States) and has processed four billion transactions in the third quarter worth approximately $ 247 billion. On an annual basis, there will be a value of about 12 billion transactions which is close to A Trillion Dollar. This is quite impressive, but note that PayPal also owns Venmo, a fast-growing mobile payment system.

Number 3: Activism Blizzard

Active Blizzard (NASDAQ: ATVI) The video game industry has a powerhouse, with an annual growth rate of 25.2% over the last 20 years and an average of 21.8% – dividends over the last 10 years. Part of its long-term success is likely due to the fact that its products are accustomed in a variety of ways – not a bad business model! (In fact, a recent study found that only 10% of gamers may actually become addicted to playing, with negative consequences in their lives.)

If you’re familiar with video games, you’ll see some familiar names among the titles of Activation Blizzard, many of which have become blockbuster hits. Company titles include Call of Duty, World of Victor, Hearthstone, Overwatch, Victor, Starcraft, Diablo and Candy Crush franchises. In its last quarter, the company reported some 390 million monthly active users, with net revenue up 52% ​​year over year. The future of the Activision Blizzard looks quite promising, with the video game market expected to grow by about 13% annually between 2020 and 2027, according to Grandview Research.

These three companies are all doing well, and continue to perform well for a long time. They deserve to be included in your investment list, and are probably still worth buying, if you look at them undefined and you expect to hang on for a long time.

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