Most stock market investors dream of becoming wealthy by striking gold with the right assets that can grow their wealth. Many new investors want to look for that one stock that could provide them with the answers to all their problems by bringing them a ton of upside so that they can finally enjoy early retirement without ever having to worry about their finances, but of course, it’s a risky strategy to pursue.
It is not impossible to find such high-quality stocks. While no investment strategy can guarantee to make you wealthy overnight, there are solid Canadian stocks trading on the TSX that can provide you with significant long-term wealth growth. Investing in technology has become a popular trend among Canadian stock market investors.
The likes of Shopify providing their investors with multi-bagger returns make it seem possible to generate solid wealth in a relatively short time. There is another Canadian tech stock that has not been in the limelight as much as Shopify that could be a millionaire maker.
Constellation Software (TSX:CSU) is a stock that has already provided substantial shareholder returns through capital gains over the years. Investors who bought Constellation Software shares worth $10,000 when the company went public in 2006 and held onto its shares would be sitting on a whopping $2.4 million right now.
Today, I will discuss this millionaire-maker stock to help you determine whether it could be a worthwhile investment today.
Efficiency and stability Constellation Software stock entered the stock market trading for a mere $9 per share back in 2006. In a matter of 15 years, Constellation Software stock is worth $2,223.53 per share at writing, representing a whopping 24,605.9% increase in its value over a decade and a half. How exactly did the stock manage to pull this off?
Unlike many of the top tech stocks today, Constellation Software has a different approach to the tech sector. The company acts as a finance manager in the industry. Constellation acquires small tech companies with significant potential, builds up the companies, and manages software businesses worldwide. The approach has allowed several tech companies to grow under its banner and, in turn, grow Constellation Software itself.
With a market capitalization of $47.12 billion, Constellation Software has become a massive presence in the industry. The company has remained successful, as evidenced by its latest earnings report. Constellation Software has acquired several new companies, growing its revenues by 35% from the same quarter last year.
Foolish takeaway While it is impossible for Constellation Software to provide its investors with another 24,600% growth in the next 15 years, it can still offer significant long-term wealth growth. An analyst recently predicted that the stock will reach $2,400, representing a significant upside from its share price at writing.
With the tech sector growing massively in recent years and the increasing digitization expected to continue for several more years to come, the company’s focus on growth through acquisitions could make you a wealthy investor even if you buy its shares today.
The post 1 Millionaire-Maker TSX Stock to Buy Right Now appeared first on The Motley Fool Canada.
Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Constellation Software and Shopify. The Motley Fool recommends the following options: long January 2023 $1,140 calls on Shopify and short January 2023 $1,160 calls on Shopify.
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