5 stocks that I think will make me extremely rich in retirement
For more than a century ago, there has arguably been no better investment vehicle than the stock market. While cryptocurrencies have had their day in the spotlight over the past couple of years, it’s hard to overlook the stability of an average annual total return above 11% including dividends paid in the benchmark. . S&P 500 since 1980.
I absolutely count on equities to play a key role in building sufficient nest egg to fund my retirement. While I currently have positions in almost three dozen stocks, there are only a few that I think will make me extremely wealthy in retirement.
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Although this is an artist’s failure in 2021, the telehealth platform Teladoc Health (NYSE: TDOC) is a farm that I fully expect to offer 10X (or more) returns by the time I’m ready to enjoy retirement.
While some people would say Teladoc was fortunate to be in the right place at the right time when the pandemic hit, I would say they don’t look at the big picture. For example, in the six years leading up to the pandemic, Teladoc’s average annual sales increased by 74%. These numbers do not indicate a fad caused by the pandemic. They represent an easily identifiable change in the way personalized care is delivered.
What Teladoc offers is upstream and downstream improvement in the processing chain. Virtual visits are more convenient for patients, and they are especially useful for physicians who are trying to keep tabs on people with chronic illnesses. The Teladoc platform enables transparent data sharing between patients and physicians. More importantly, virtual visits should lead to better patient outcomes, which ultimately means less money in the pockets of insurers.
The other from Teladoc “secret weaponis the applied health signals company Livongo Health, which it acquired at the end of last year. Livongo is using artificial intelligence to send nudges to its chronic care members for change their behaviors for the better. Although her current focus is on diabetes, her services will also encompass hypertension and weight management. Thus, Livongo’s patient base is expected to include a large portion of the United States.
With Teladoc expected to grow 25-30% per year through 2024, the company appears to be still in the early stages of transforming the healthcare space.
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In a market governed by growth stocks, my biggest holdings and the best return I have had as an investor, is a gold and silver miner SSR mine (NASDAQ: SSRM). I am currently 1,235% higher than my base cost.
To state the obvious, you are not buying a mining actions Unless you believe in the metal’s appreciation potential, it comes out of the ground. The shiny yellow metal should continue to benefit from historically low short-term lending rates, as well as rapidly rising inflation. With few possibilities to generate a secure income, gold is a good bet to go higher.
But owning SSR Mining is more than just hoping that gold and silver (the majority of the company’s income comes from gold mining) to go higher.
Last year SSR transformed with a peer-to-peer merger with Turkey’s Alacer Gold. This brought SSR’s three producing assets (the Marigold and Seabee gold mines and the silver-focused Puna operations) under one roof with Alacer’s high-yield Copler gold mine. This merger nearly doubled production, while maintaining SSR’s premier balance sheet, which boasts more than $ 500 million in net cash. In fact, things have been so good for SSR Mining that it instituted a $ 150 million share buyback program and a base annual dividend of $ 0.20.
SSR Mining will not fall for its growth, but it is undoubtedly the highest value among gold stocks based on its future cash flows.
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Also in the annals of “industries I never thought would fund my retirement” is the stock of furniture Lovesac (NASDAQ: LOVE). Unlike SSR Mining, which I’ve owned for a long time, Lovesac was added right after the coronavirus crash.
Usually, when I type in the phrase “furniture stock”, my eyes fall a bit with boredom. This is because most furniture companies operate brick-and-mortar stores and rely on foot traffic to move third-party-made furniture that they have purchased in bulk. It is a cyclical and cumbersome operating model that Lovesac has been more than happy to disrupt.
The great differentiator of Lovesac is its furniture. While he was originally known for his ottoman style armchairs, known as bags, around 85% of his income today comes from modular sofas called sactionals. The modular design allows buyers to rearrange this piece of furniture in dozens of different ways, meaning it will fit in most living spaces. Sactionals also offers around 200 machine washable cover options, making it possible to match the theme or color scheme of any home. And for you ESG investment fans, recycled plastic water bottles are used to make the yarn for these blankets.
Lovesac is also running in circles in the heavy furniture industry with its omnichannel sales platform. During the pandemic, the company shifted a significant portion of its sales online. Paired with pop-up showrooms and showroom partnerships, Lovesac has been able to drive sales while keeping its overheads low.
With Lovesac pushing towards recurring profitability well ahead of Wall Street forecasts, I’m delighted to see this innovator grow.
Image source: Getty Images.
If there’s one industry that investors simply shouldn’t bet against, it’s all that has to do with spending on pets. That’s why i’m waiting To bark (NYSE: BARK) to give me a life of financial freedom. As the name of the company suggests, Bark is a company focused on dog products and services.
Just to give you an idea of ââhow powerful the pet industry is, data from the American Pet Products Association shows year-over-year spending hasn’t declined for more than a quarter. century. The dot-com bubble, financial crisis and pandemic could not slow down the desire of pet owners to keep their furry family members happy and healthy. As a person who spent a fortune on his recently deceased dachshund, I can attest to this willingness to do whatever is necessary to make your pet’s finite existence as great as possible.
Enter Bark, to the left of the stage. This relatively new company, from the point of view of public listing, offers a number of growth attributes that make me salivate. On the one hand, nearly 90% of its sales come from direct-to-consumer subscriptions. Typically, subscriptions generate very predictable cash flow with low overhead, and they tend to keep users loyal to a service. In Bark’s case, the company has steadily generated gross margins of 58% to 60%, and its subscriber base has grown from less than 1 million to 2.1 million in less than two years.
Equally exciting is Bark’s innovation. Last year, the company introduced Bark Home, a one-stop-shop for basic accessories like beds and collars, and Bark Eats, a personalized service that helps owners craft a dry diet delivered to their dog. Adding new services can expand the company’s audience and create additional opportunities that increase margins.
The bark will take a little patience, but I believe he can be a 10X winner in the long run.
Image source: Pinterest.
The fifth and final action that I think can make me extremely wealthy in retirement is the social media platform. Pinterest (NYSE: PINS). Similar to a few other businesses here, I crammed onto Pinterest during the coronavirus crash.
Like Teladoc, skeptics had a field day with Pinterest this year. Critics say two consecutive quarterly declines in the company’s monthly number of active users (MAUs) are a sign Pinterest is struggling. While the growth of its MAU has slowed over the past two quarters as immunization rates have risen and life in some countries has normalized a bit, the company’s three- and five-year growth trajectory of the MAU is still within historical standards.
The biggest story here is how effective has Pinterest been in monetizing its MAUs. Even though year-over-year MAU growth was less than 1% in the quarter ended September, average revenue per user increased 37% globally and 81% globally. international scale. This tells us that advertisers are willing to pay a lot more to reach potentially motivated Pinterest buyers.
The Pinterest platform is arguably the perfect model for advertisers. Instead of guessing what users like, the whole premise of Pinterest is to show the world the things, places, and services that a person cares about. This makes it incredibly easy for Pinterest to act as an ecommerce intermediary to connect motivated users with marketers who can meet their interests.
Pinterest is a profitable, early stage growth history that I can only hope that it is not acquired.
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Sean williams owns shares of Pinterest, SSR Mining Inc., Teladoc Health, The Lovesac Company and The Original BARK Company. The Motley Fool owns shares and recommends Pinterest and Teladoc Health. 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.