Not all risky investments are equally rewarding, but the “more-risk-more-reward” ideology still holds. That’s why a healthy risk appetite is crucial for an investor’s success. But you can mitigate the risks and still get a lot of the upside by choosing the right stocks at the right time. And with the right amount of capital, these stocks may have the potential to make you a millionaire, given enough time (and the right circumstances).
A promising company CloudMD Software (TSXV:DOC) offers an overlap of health and tech. While telemedicine is not a unique concept, it’s still being refined for the internet, and several advances in technologies are bringing us closer to a future where “remote healthcare” will be the norm. CloudMD can be huge in that future, and for now, it’s available at a fraction of the cost it might actually be worth someday.
The stock did rise quite strongly in its early days, that is, from its inception to its 2021 peak, but that might have been due to the general optimism about the tech sector and not the fundamental strength of the company itself. Still, the company has made great strides toward growing its healthcare network and already has about 22,000 family doctors and 34,000 specialists connected to the network.
A “former” powerful growth stock Xebec Adsorption (TSX:XBC) appears to have lived through its glory days. It was a powerful growth stock, at least four to five years prior to the pandemic. Thanks to both the broader bull market and the company’s focus on air purification (which might have seemed like a great investment during the pandemic), the stock soared over 400% in about 10 months.
Now, the stock has fallen down a long way from its 2021 peak (almost 75%) and about 38% from its pre-pandemic peak. So even if it’s not exactly underpriced, the stock is currently trading at a fraction of its full potential. Especially considering the diversity of the company’s product line/services, which include hydrogen – a futuristic fuel with untold potential.
A crypto stock If you had invested in Bitcoin exactly five years ago, you would be sitting on 7,045% growth right now. And if you had invested in HIVE Blockchain Technologies (TSXV:HIVE), the growth, while not nearly as enormous, would still have been substantial (4,660%). And since you can put the stock in the registered accounts (the RRSP or Tax-Free Savings Account), the “difference” between the stock and the underlying asset might shrink even further.
HIVE technologies is still a millionaire-maker stock because of the volatile nature of Bitcoin and crypto in general. And it’s a bit different from other crypto stocks, particularly the miners, because it’s connected to the crypto market in a more wholesome way. It can be a significant liability if crypto completely crashes and burns, but it can also be a great asset when crypto is more readily accepted.
Foolish takeaway Not all growth stocks grow as a function of time. And while it’s true that a stock like Xebec Adsorption (if it starts growing at its former pace) might make you a millionaire if you invest a hefty sum and stick with the stock for long enough, you might have to be a bit more active with stocks like HIVE that you have to buy during crypto crashes and sell when Bitcoin peaks.
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Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.