Do you have $ 250,000? These game-changing stocks can make you a millionaire by 2030
AWhile Wall Street makes no guarantees, a common theme is that patience pays off. Despite 38 double-digit percentage fixes or crashes since 1950, the S&P 500 eventually wiped out each of those slowdowns with a bullish rally.
Buying big companies and allowing your investment thesis to grow over many years has always been a path to wealth building on Wall Street.
The same goes if you want to become a millionaire. If you have $ 250,000 ready to invest that won’t be needed to cover emergencies or pay bills, and you’re ready to hold on to what you buy until 2030, the following trio of breakthrough stocks have all the tools you need to make you a millionaire.
Image source: Getty Images.
The past two months have been nothing short of a roller coaster for the social media platform Pinterest (NYSE: PINS). Shares of the company were shattered after reporting a surprise quarterly drop in the number of monthly active users (MAUs) during the quarter ended in June, and they were truncated in October after rumors circulated that Pay Pal may have had an interest in buying Pinterest. These rumors have since been suppressed by PayPal.
But if investors ignore much of this recent white noise, they will see a steadily growing platform in the early stages of monetization that could very easily become a major player in e-commerce by the end of the decade.
The focus was on lowering Pinterest’s MAU to 454 million in the second quarter, from 478 million in the first quarter of 2021. But if investors pull back and look at MAU growth over a three, four, or five years, they’ll notice that the MAU’s growth trajectory is still well within historical norms. It was inevitable that the accelerated net growth of MAU during the pandemic would decline as vaccination rates increased globally. This slowdown does not change the fact that the company’s MAUs continue to climb over time.
Monetizing your MAUs is arguably far more important than just growing your user base. Even though its user base grew a modest 9% in the second quarter from a year earlier, Pinterest’s average revenue per user (ARPU) jumped 89% overall and 163% overall and 163% overall. ‘international. This tells us that merchants are more than willing to pay to reach Pinterest’s MAUs.
Speaking of its MAUs, the company has what I would describe as the most targeted user base of any social media platform. While collecting data can somewhat help advertisers target users on other social media sites, Pinterest users readily share the things, services, and places that interest them. You don’t have to guess, this is what allows Pinterest to act as an intermediary platform to connect users with merchants who specialize in their interests.
Pinterest is profitable, growing its ARPU at a rapid rate, and can maintain double-digit sales growth throughout the decade. It’s a good bet to turn a $ 250,000 investment into $ 1 million by 2030.
Image source: Getty Images.
Green thumb industries
The US cannabis industry is also expected to strike millionaires over the next decade. Long-term investors have the opportunity to quadruple their money with marijuana stocks Green thumb industries (OTC: GTBIF).
You will notice that most of the pot stocks have been nothing short of a buzzkill over the past eight months. Initially, the Biden administration was expected to move quickly to legalize cannabis at the federal level or enact some level of reform that would ease the financial restrictions the industry faces. Because that did not happen, the stocks of marijuana were crushed. However, this short-term pain is the opportunity for investors to make serious long-term gains.
The point is, 36 states have legalized marijuana to some extent, and the federal government allows states to regulate their own pot industries. Federal reform would be positive, but well-funded multi-state operators (MSOs) like Green Thumb Industries just don’t need to be successful.
There are two factors that should allow this company to deliver green to its shareholders. First, Green Thumb primarily targets limited license cannabis markets. These are legalized states that voluntarily limit the number of retail licenses issued in total and to a single business. While this license limitation may seem onerous, it is actually beneficial in that it allows Green Thumb to grow its brands and gain followers in a number of potential billion dollar markets without being overrun. by more established MSOs.
The second and arguably most important factor that can help enrich investors is Green Thumb’s product line. More than half of the company’s revenue is generated from by-products, such as edibles, vapes and oils. Potted derivatives have higher prices, juicier margins, and are less prone to oversupply, compared to dried cannabis flower. Derivatives are the reason Green Thumb has already achieved recurring profitability.
Image source: Getty Images.
The original bark company
A third groundbreaking action that can turn a $ 250,000 investment into $ 1 million by 2030 is The original bark company (NYSE: BARK). As the name suggests, Bark offers products and services for dogs.
While a number of industries are currently experiencing double-digit growth, perhaps there is no industry more recession-resistant in North America than the companion animal industry. According to data from the American Pet Products Association (APPA), pet spending in the United States has been declining for at least a quarter of a century on a year-over-year basis.
At the same time, we have seen the percentage of households owning a pet go from 56% in 1988 to 70% according to the APPA survey 2021-2022. In short, pet owners will spare no expense to ensure the happiness and well-being of their four-legged, scaled and feathered family members.
What makes Bark such an intriguing company is its reliance on the direct-to-consumer subscription model. About 90% of the company’s revenue comes from subscription services, with the remaining 10% being generated by the presence of its products in more than 23,000 retail stores nationwide. The beauty of this approach is the lower overhead, compared to traditional brick and mortar retailers. Not having to operate physical stores brought Bark’s gross margin to around 60%.
The company also relies on innovation to generate additional high-margin sales. The company’s monthly toy and treat BarkBox is expected to remain its key subscription service for the foreseeable future. However, the introduction of Bark Home and Bark Eats last year gives customers an incentive to spoil their dog or improve its well-being. Bark Home provides basic accessories like leashes, collars and beds, while Bark Eats works with owners to develop a specific dry diet for their dog.
The Original Bark Company has the potential to triple sales over the next five years and should have no trouble carving out a niche in the highly lucrative pet industry.
10 stocks we like better than Pinterest
When our award-winning team of analysts have stock advice, it can pay off to listen. After all, the newsletter they’ve been running for over a decade, Motley Fool Equity Advisor, has tripled the market. *
They just revealed what they think are the top ten stocks investors can buy right now … and Pinterest wasn’t one of them! That’s right – they think these 10 stocks are even better buys.
See the 10 actions
* The portfolio advisor returns on October 20, 2021
Sean Williams owns shares of Pinterest and The Original BARK Company. The Motley Fool owns shares and recommends Green Thumb Industries, PayPal Holdings and Pinterest. The Motley Fool recommends the following options: $ 75 long calls in January 2022 on PayPal Holdings. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.