Want to become a millionaire? Invest $ 200,000 in these 5 stocks and wait until 2030

Wall Street has consistently demonstrated throughout history that it pays to be patient. For example, each of the 38 two-digit percentage corrections of the benchmark S&P 500 has come its way since the early 1950s was finally swept away by a bullish rally. In fact, the rebound in the coronavirus bear market is the strongest Wall Street has ever seen.

But even with the S&P 500 nearing a record, bargains can still be found. The key, however, is that investors need to be patient and willing to let their investment theses materialize over time.

If you have $ 200,000 to invest and you don’t need that capital to pay bills or cover emergencies until at least 2030, the following five stocks have the real potential to make you a millionaire.

Image source: Getty Images.

Airbnb

Buying and owning disruptive businesses is often a good way to build wealth over time. One of those companies that could quintuple in value by 2030 and make investors into millionaires is the travel and accommodation platform. Airbnb (NASDAQ: ABNB).

Airbnb is best known for providing a platform that connects travelers to over 4 million hosts around the world. This is only a fraction of what the total number of hosts is likely to be in 2030. In the three years leading up to the pandemic, Airbnb’s market bookings more than quintupled to over 250 million. This is because Airbnb bookings are often cheaper and more convenient than comparable hotel stays.

Equally exciting, the fastest growing category of business is long term stays, defined as 28 days or more. Not only does the growth in long-term stays demonstrate that Airbnb’s operating model is not a fad, but it fits seamlessly into an increasingly mobile / remote workforce.

However, Airbnb isn’t just disrupting the hospitality industry. It is also targeting more consumer travel money with its Experiences segment. By working with local experts, Airbnb has the potential to build adventures and travel arrangements beyond just booking stays. He’s a real disruptor in every sense of the word.

Employees in a conference room using laptops and tablets to analyze financial data.

Image source: Getty Images.

PubMatic

Advertising goes digital and PubMatic (NASDAQ: PUBM) aims to be one of the biggest beneficiaries of this change.

PubMatic is a sell-side programmatic advertising platform that uses machine learning algorithms to buy, sell, and optimize ads. In simpler English, the company’s clients are publishers looking to sell their poster space. PubMatic’s platform allows these publishers to set certain parameters on its cloud-based platform, such as the lowest price they will accept for the sale of display space. Beyond these entries, PubMatic manages ad correspondence with its customers to keep all parties happy.

Obviously, the company is doing something right. Net dollar retention was 157% in the third quarter, compared to 150% in the sequential second quarter. What these numbers tell us is that publishers who were with PubMatic in Q2 and Q3 of 2020 spent 50% and 57% more in Q2 and Q3 of the current year, respectively.

Additionally, PubMatic’s organic growth rate completely erases expectations of 10% annualized sales growth for the digital advertising industry through the mid-decade.

Someone using a tablet to browse a pinned board on Pinterest.

Image source: Pinterest.

Pinterest

The social media company is another game changer that could turn a $ 200,000 investment into $ 1 million by the end of the decade. Pinterest (NYSE: PINS).

Much has been done in the past six months of Pinterest’s sequential decline in Monthly Active Users (MAUs) from 478 million to 444 million. However, that drop appears to be more in line with rising vaccination rates and people stepping out of the house more often than anything really wrong with Pinterest’s operating model. A longer-term look at MAU’s growth shows that the company is well within its historical standards.

What’s really impressive is how effective Pinterest has been at monetizing its users. Even with an increase in global MAUs of less than 1% in the quarter ended September compared to the period a year earlier, global average revenue per user (ARPU) and international ARPU increased by 37% respectively. and 81%. This shows that merchants are willing to pay a lot of money to showcase their products to motivated Pinterest buyers.

This brings us to the other key point: Pinterest is perfectly positioned to become a major e-commerce hub over time. No other social media platform explains what customers like or want better than Pinterest, making it easy for marketers to target their ad spend.

Close-up of a cannabis plant on a large indoor cash crop farm.

Image source: Getty Images.

Columbia Care

The US cannabis industry is set to offer a lot of greenery for patient investors this decade. The Multi-State Operator (MSO) is one such company that has the potential to quintuple by 2030. Columbia Care (OTC: CCHWF).

The Columbia Care marijuana stock is a beast in the cannabis space (it holds nearly 100 retail licenses) that is driven by two growth goals. First, the company is not afraid to make acquisitions to expand its reach. It recently acquired Colorado-based Medicine Man and completed its acquisition of Green Leaf Medical in June. While the downside of an expansion strategy with a high inorganic component is higher costs in the short term, it should prepare the company for higher growth prospects and recurring profitability in 2022.

The second key cog in Columbia Care is focused on the limited license markets. By this I mean states where regulators deliberately limit the total number of dispensary licenses issued, as well as to a single company. Operating in limited license states like Illinois, Pennsylvania, and Virginia, Columbia Care can grow its brands without being crushed by an MSO with deeper pockets or a more established brand.

An Amazon delivery driver behind the wheel of his van talks to a colleague.

Image source: Amazon.

Amazon

Last pillar of e-commerce, but not the least Amazon (NASDAQ: AMZN) has all the tools to turn a $ 200,000 investment into $ 1 million by 2030.

Most people are probably familiar with Amazon because of its dominant online market. An August report from eMarketer estimates the company will account for 41.4% of all online sales in the United States this year. Being the go-to source for online shopping has helped Amazon sign up over 200 million people for Prime memberships. The fees the company collects from Prime members help it systematically lower prices from traditional retailers.

But Amazon’s real growth opportunity has nothing to do with retail. On the contrary, the leading segment of the Amazon Web Services (AWS) cloud infrastructure will be its cash cow in the long run. AWS accounts for nearly a third of global cloud infrastructure spending, and AWS’s margins revolve around the margins Amazon collects in its market.

Since 2010, Wall Street and investors have not hesitated to estimate Amazon at a median of 30 times its operating cash flow. By 2024, the company is expected to reach $ 314 in cash flow per share, according to Wall Street consensus estimates. It is not excluded that Amazon will reach $ 500 cash flow per share by 2030, which would place its shares at $ 15,000.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Questioning an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.


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