Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

TFSA Investors: Turn $1,000 Into $10,000 in 10 Years

Stock Markets Jun 25, 2022 12:15
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. TFSA Investors: Turn $1,000 Into $10,000 in 10 Years

One of the most popular “disclaimers” in investment is that past performance is not a guarantee of future performance. And it’s quite true. The market is complex and tied to a huge array of internal and external factors; making accurate predictions of future performance based on the past is quite challenging. But it’s also true that past performance is the best source of information you have to predict the future.

And if we follow that approach and assume that the three stocks below would perform in almost the same way for the next 10 years as they did in the past decade, it’s certainly possible to turn your $1,000 investment into $10,000 within a decade.

A tech stock Tech is currently one of the most heavily discounted sectors in the country, but it has also been one of the best sources of growth assets for the past several years. Tech stocks like Tecsys (TSX:TCS), which offers a wide variety of supply chain solutions and is currently trading at a heavy discount of over 52%. And despite such a drastic fall, its 10-year returns remain quite impressive at around 1,057%.

If this tech company can replicate this growth in the next decade as well, you can end up with a $10,000 nest egg starting with a $1,000 seed at the beginning of the decade.

Tecsys is a relatively small company, especially considering its market capitalization, but it has a solutions and services portfolio to match most larger tech companies in its space.

A cargo stock Cargojet (TSX:CJT) was once one of the most aggressive growers on the TSX, but the last couple of years have been quite stagnant as far as the company’s performance is concerned. We can’t even lug it with other airlines that carry passengers, thanks to its cargo-oriented business model and its proprietary strength — i.e., overnight cargo.

The company has dominance in this arena and has already accumulated a sizeable fleet for a cargo-only company. And even though Air Canada is slowly emerging as a serious competitor, it’s still a long way from disrupting the market enough to push Cargojet out of business.

The stock, despite its current hard slump and a long stagnation period, offers a 10-year price appreciation of almost 1,700%. And if the future growth potential is expected to remain safe, the stock may be powerful enough to grow your investment by 1,000% in around six years — well under a decade.

A financial stock When it comes to growth stocks that have the potential to offer you a three-digit growth rate almost every year, goeasy (TSX:TSX:GSY) is easily one of the best choices there are. The alternative financial company has seen its market value rise at an unprecedented rate for well over a decade.

And the growth has been so impressive that even now when the stock is quite aggressively discounted (55% from the last peak), the 10-year returns are at over 1,300%. And that’s without the dividends.

Averaged out over the years, that’s about 130% growth every year, and at this rate, the stock is capable of growing your $1,000 capital 10-fold in nearly eight years.

goeasy has captured a niche market in the Canadian financial industry: people that can’t turn to conventional lenders like banks and credit unions usually because of their credit scores. By offering modest-sized personal loans quickly, the company filled a massive void that is now almost as big as most banks.

Foolish takeaway The three stocks are capable of offering you 10-fold growth within your Tax-Free Savings Account well within a decade. If you are starting out even with one-sixth of a year’s contributions ($6,000), you may end up with a small, five-digit sum in 10 years.

The post TFSA Investors: Turn $1,000 Into $10,000 in 10 Years appeared first on The Motley Fool Canada.

Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends CARGOJET INC. and Tecsys Inc.

This Article Was First Published on The Motley Fool

TFSA Investors: Turn $1,000 Into $10,000 in 10 Years
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email