For all of us, playing for a professional sports team or writing a bestselling book or winning an Academy Award is just a pipe dream – not likely to happen. But there are still some wonderful achievements in life that Is In our hands – like a millionaire retires.
Given enough time and effective savings, most of us can become millionaires, and we can get there by investing in the overall stock market – perhaps through a low fee S&P 500 index fund. Your portfolio can grow at an additional pace, however, if you include some companies that are growing rapidly (and will continue to do so).
Image Source: Getty Images.
One million dollars is growing
Before naming any promising companies, here’s a look at what it takes to raise a million dollars. It all depends on three factors:
Your investment deadline
Clearly, the longer your investments grow, the bigger your structure will become an egg. That’s why it’s best to start early, even in your 20’s, as it allows you to retire early.
The growth rate of your investments
If you save and invest aggressively for decades, but your money only grows by 1% or 2%, you will not be able to achieve the status of a millionaire. The stock market, for many decades, has averaged close to 10% annually. That’s a good target for that, although the market average (or more) could be higher Your Investment period.
How much do you invest?
In the end, how much you invest is also very important. The table below shows how much you can accumulate for regular savings of different amounts over different periods:
|
For a growth of 8% |
Ually invests 10,000 annually |
15,000 is invested annually |
20,000 is invested annually |
|---|---|---|---|
|
5 years |
, 63,359 |
, 95,039 |
6 126,718 |
|
10 years |
6 156,455 |
4 234,683 |
2 312,910 |
|
15 years |
3 293,243 |
9 439,865 |
6 586,486 |
|
20 years |
4 494,229 |
1 741,344 |
8 988,458 |
|
25 years |
9 789,544 |
18 1,184,316 |
5 1,579,088 |
|
30 years |
2 1,223,459 |
8 1,835,189 |
44 2,446,918 |
Data source: Calculations by author.
That table assumes an average annual growth rate of 8%, which you can expect to achieve by investing in a long-term index fund. The following three companies are considered to help you become a millionaire through retirement. Each has grown at a faster clip than the overall market, and is poised to continue to do so.
1. Amazon.com
Commer online commerce juggernaut Amazon.com (Nasdaq: AMZN) There is clearly growth on the long fast clip. Its share price recently had a 20-year average annual growth rate of 26.3% – enough to turn a single રોકા 10,000 investment into લ 1 million. It can be difficult for companies to grow as fast as they did in the past, once they get bigger – but over the past decade, Amazon’s average annual growth rate has been even more intense – .8 33 ..%. (For comparison, the S&P 500’s average averages 6.9% and 13.9% over the past 20 and 10 years, respectively (with reinvested dividends) are reasons to expect market-beating growth for the near future.
For example, it is firing on all cylinders during the epidemic, with net sales in the third quarter increasing %%% to $ 3 billion billion from the previous year, while net revenue has tripled. The company has added many more workers and plans to add 100,000 more permanent workers, who will receive a minimum wage of કંપની 15 per hour. Many, if not most, people just associate it with its marketplace online market opportunities, currently its biggest cash guy is its cloud-computing platform, Amazon Web Services (AWS), which rose 29% to 11 11.6 billion in the third quarter. And has a market share of 33% in its industry.
Image Source: Getty Images.
2. PayPal
PayPal (Nasdaq: Drunk) It is the second standout performer with an average annual growth rate of 37.1% since its cut. EBay In the summer of 2015. You might assume that it is a reasonably large financial services company, because many of the purchases you make online are the PayPal option you offer. But you probably don’t know how Big business is that. For starters, its market value was recently 1 241 billion – which is the top spot in recent market value. Coca Cola, Netflix, And AT&T And twice as much Wells Fargo Or Citigroup.
PayPal serves some 1,361 million active users globally (approximately the population of the United States) and has processed nearly four billion transactions in its third quarter, worth about 7 7,247 billion. On an annual basis, that would be about 12 billion transactions Trillion Dr. It’s impressive enough, but note that PayPal also owns Venomo, a fast-growing mobile payment system.
No. 3: Activation Blizzard
Active snowfall (Nasdaq: ATVI) The video game industry is a powerhouse, with an annual growth rate of 25.2% over the last 20 years and 21.8% over the last 10 years – with dividends reclaimed. Part of its long-term success is likely due to the fact that its products are addictive – not a bad business model! (Indeed, a recent study found that only 10% of gamers can actually become addicted to playing with negative consequences in their lives.)
If you’re familiar with video games, you’ll see some familiar names in Activision Blizzard titles, many of which have become blockbuster hits. The company’s titles include Call of Duty, World Warfare Craft, Heartstone, Overwatch, Craft Craft, Star Craft, Diablo and Candy Crush franchises. In its last quarter, the company registered about 390 million monthly active users, with revenue up 52% year-over-year. The future of Activision Blizzard looks very promising, with the video game market growing at an annual rate of 13% between 2020 and 2027, according to Grandview Research.
All three companies are doing well, and are in good shape for the long haul. They are worth adding to your investment watch list, and are also worth buying now, if you see them as an appraisal and you expect to hang on for a long time.
