Investing in the stock market can definitely make you a millionaire – if you have enough time and / or invest significant amounts. In 25 years, for example, you can accumulate almost $ 1.2 million by saving and investing $ 15,000 annually and earning an average annual return of 8%. That’s terrible!
But if you want to get to the millionaire faster, you can take more risks by investing in a few individual stocks – perhaps while holding a portion of your assets in some solid, low-rate index funds. There is no guarantee of great return, but many stocks have the potential to double and triple in the coming years.
Here are three actions to consider for your long-term portfolio – those that can help you become a millionaire faster.
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1. Jushi Holdings
You may have noticed that medical and recreational marijuana has become legal in more and more states in the past decade or more, with the trend to continue. Therefore, it is understandable that there is a lot of interest in companies focused on marijuana as potentially powerful investments. However, there are many such companies, so it can be confusing to find out which ones are best positioned to thrive. A company that has many defenders is Jushi Holdings (OTC: JUSHF).
Headquartered in Boca Raton, Florida, Jushi is “a national multi-state cannabis company that develops and operates high-quality retail locations, premium brands and state-of-the-art growing, processing and manufacturing facilities.” Recently, it had 16 stores opened and another 16 opened, in some states like California, Pennsylvania, Illinois and Virginia.
One of the good things about Jushi is that although its shares have more than sixt in value in the past year, it is still a modest size company, with a recent market capitalization of just $ 790 million. In other words, there is a lot of room for growth. Another big advantage for the company is that its insiders have invested tens of millions of dollars of their own money in the company, which means that they have considerable skin in the game and are very motivated to make the company succeed.
2. Boston Omaha
Boston Omaha (NASDAQ: BOMN) it is another small company, with a recent market value of US $ 1.2 billion. It’s a little bit unusual, too, sometimes compared to Warren Buffett’s Berkshire Hathaway – although he doesn’t have Berkshire’s incredible decades-long history or Buffett at his command. (His great-nephew, Alex Rozek, is the co-CEO, however.)
The similarity to Berkshire stems from the fact that Boston Omaha is diverse in its operations. Its three majority-owned companies are focused on external advertising (think of billboards), surety bonds and broadband telecommunications. Like Berkshire, it also has other interests, such as minority stakes in a bank, a national home builder and commercial real estate services companies. One of these companies recently made an initial public offering, leaving Boston Omaha with shares worth tens of millions of dollars.
One reason some investors are excited about Boston Omaha is that it recently launched a “SPAC”, or special purpose acquisition company – a business that is often called a “blank check company” because it takes money from investors to buy other companies – based on the “trust me, I will buy good business” principle. It is worth taking a closer look at Boston Omaha, if your interest is piqued.
Image source: Getty Images.
3. Universal display
Finally, we come to Universal display (NASDAQ: OLED), a $ 10.5 billion technology company that has seen its shares nearly quadruple in value over the past five years. It specializes in energy-efficient organic light-emitting diode (OLED) lighting technology, which is found on many, if not most, smartphones.
OLED lighting technology is developing and improving, and the Universal Display is a major player in its research and development. It owns or has the right to sub-license more than 5,000 patents (issued and pending) and obtains 43% of its revenue (in 2020) from just that – licensing. It is not a manufacturer of OLED products, but it sells the materials to them, and it is from these sales that 54% of its revenue came in 2020.
A promising catalyst for the growth of Universal Display is that more TVs are being produced with OLED screens, and take up much more space than a small smartphone screen, so they will require more production materials. This profitable company also appears reasonably valued, with its regular and prospective price / earnings (P / E) ratios on the steep side, but also below its five-year averages. And it still pays a small (but growing) dividend.
Each of these three companies looks set to perform well in the next decade or so, and they can accelerate your arrival at the millionaire – or they can just help part of your portfolio grow faster. Take a closer look at anything that interests you.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Questioning an investment thesis – even our own – helps all of us to think critically about investing and making decisions that help us become smarter, happier and wealthier.