For some investors, putting all their money into an index fund and waiting for it to deliver good (roughly average) returns isn’t enough. These investors are looking for above-average returns from just one company (or a few companies) that they hope will be enough to measurably improve their financial situation in retirement.
Most investors should aim for a balanced and diverse portfolio, but almost any investment strategy can also benefit from including a handful of well-chosen growth stocks. The trick, of course, is to find the right growth stocks to invest in.
Here are two promising growth stocks you can buy now and hold comfortably for the next twenty years.
1.Tesla
Tesla (NASDAQ: TSLA) was one of the best performing stocks of the past decade; since its initial public offering in 2010, it has risen approximately 15,300%. Although the shares have remained within a certain range in recent years, there are still opportunities for the company that could deliver higher returns.
CEO Elon Musk doesn’t view Tesla merely as an electric car manufacturer; he also (and perhaps more importantly) sees it as an artificial intelligence (AI) company. The EV market is expected to grow in the coming years, and Tesla should grow its car revenues as well. However, Musk’s vision for the company is much bigger.
Tesla has spent years investing in its Dojo supercomputer, which serves as the AI backbone for the company’s developments in self-driving cars, robotics and more. The company is also making progress toward the rollout of its humanoid robot Optimus, which is designed to perform a wide range of repetitive tasks. It’s still a work in progress, but Musk has said the robot has the potential to exceed the value of any other product at Tesla.
Tesla generated $78 billion in automotive revenue last year, but the value of the AI-powered transportation market alone is expected to reach $2.2 trillion by 2030, according to Statista. That reflects a huge opportunity for Tesla’s robotaxi initiative.
Tesla offers investors a lot of upside for electric vehicles and other AI-related products. Musk has had several successes with his business endeavors over the years (as well as his share of failures), making him one of the richest people in the world. Investors can invest in Tesla and buy into his future plans for what could one day become the most valuable company in the world.
2. Sagittarius Aviation
That is another progressive company with enormous potential Sagittarius Aviation (NYSE: ACHR). It lays the foundation for the expansion of short-haul urban air travel in the US and beyond – a market that is expected to explode.
Major cities have increasing needs that urban air travel can help them with, such as reducing traffic on busy highways and shortening travel time between urban destinations, especially to areas with little coverage. In addition, the development of electric propulsion systems offers cities new opportunities to reduce air pollution, and this is a huge opportunity for Archer.
Archer is not yet generating revenue as it is still in the process of obtaining FAA certifications for its electric vertical take-off and landing (eVTOL) aircraft, the Midnight, but it has already delivered its first aircraft to the US Air Force and is seeing strong interest from customers all over the world. The company recently received an order for a planned purchase of 116 aircraft from Future Flight Global, adding to Archer’s $6 billion order book.
Archer already has plans to launch eVTOL travel networks in Los Angeles and San Francisco. There is also a collaboration with Southwest Airlines to develop an air taxi service using the Midnight.
The urban air mobility market was valued at $2.5 billion in 2022, according to Grand View Research, but is expected to grow 34% annually through 2030. With Archer’s market cap of just $1 billion, investors could see phenomenal returns in the coming years. 20 years.
Don’t miss this second chance at a potentially lucrative opportunity
Have you ever felt like you missed the boat on buying the most successful stocks? Then you would like to hear this.
On rare occasions, our expert team of analysts provides a “Double Down” Stocks recommendation for companies they think are about to pop. If you’re worried that you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
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Amazon: If you had invested $1,000 when we doubled in 2010, you would have $20,579!*
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Apple: If you had invested $1,000 when we doubled in 2008, you would have $42,710!*
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Netflix: If you had invested $1,000 when we doubled in 2004, you would have $389,239!*
We’re currently issuing ‘Double Down’ warnings for three incredible companies, and another opportunity like this may not happen anytime soon.
See 3 “Double Down” Stocks »
*Stock Advisor returns October 7, 2024
John Ballard has positions in Tesla. The Motley Fool holds and recommends positions in Tesla. The Motley Fool recommends Southwest Airlines. The Motley Fool has a disclosure policy.
2 Monster Stocks to Hold for the Next 20 Years was originally published by The Motley Fool
