The stock market, when used correctly, may be a money-making machine. Is it possible to become a millionaire with the stock market? Yes. To achieve amazing gains, you must put aside all of the short-term disruption and keep your attention on the long-term goal — and I mean decades in length.
To make a $200,000 return on an investment of $10,000, we’ll need 20-bag performance from both of our equities. Here are two high-growth names that may produce this result.
1. Doximity — From $8.3 billion to $166 billion
The most popular internet portal for US healthcare workers is Doximity (DOCS -1.75 percent). It has already attracted 80% of physicians and 90% of medical students in the United States. It’s where doctors go to look for jobs, pharmaceutical companies promote their medications, and patients interact with their doctors online. Doximity is a moneymaking machine as well, with a 44 percent profit margin.
In essence, Doximity has robbed larger social networks like LinkedIn of a portion of their user base. And how large is this market sector? It’s enormous. Healthcare expenditures in the United States were $4 trillion in 2020 and are anticipated to rise to $6 trillion by 2028.
The estimated addressable market for Doximity is $18.5 billion, but the company has a lot of leeway. When the epidemic hit, it launched Dialer, which was a success right away. The firm facilitated 63 million telehealth visits in a year, compared with Teladoc Health (TDOC -40.15%) and the rest of the telemedicine industry’s 63 million visits. Because doctors are such an important audience, I expect Doximity’s online dominance in healthcare to raise the stock’s value dramatically over the next two decades as the firm discovers new methods to monetize its customers.
2. Innovative Industrial Properties — From $4.2 billion to $84 billion
The largest owner of cannabis facilities in the United States is Innovative Industrial Properties (IIPR 1.86%), with 8 million square feet of growing space. Marijuana, of course, has an odd position in American society right now. For many years, growing, selling, and using it were all crimes. However, it is legal in a number of states for medical or adult recreational purposes. Because of this, the federal government is largely turning a blind eye to individuals who violate state marijuana laws in these jurisdictions. Nonetheless, criminal statutes remain on the books. And because of those regulations, traditional banks are afraid to offer financial services to people and firms in the cannabis sector.
How can a marijuana company obtain the cash it requires to function and develop if it isn’t able to access conventional financial services? Of course, selling stock on the public markets is one approach. However, businesses dilute investors’ stakes as additional shares are offered, which has resulted in marijuana stocks’ values dropping.
Another alternative is to sell your manufacturing plant to Innovative, which would then lease it back to you. More and more marijuana firms have done so. This is why InnovATIVE has exceptional profit margins of 55% and continues to increase its sales by almost 60% a year. It’s also why this cannabis stock has outperformed the market over the previous five years.
I expect the federal government to modify its marijuana policies in the next two decades, making it fully decriminalized. Financial institutions will be permitted to offer financial services to marijuana firms. Innovative will then become a mundane (and very lucrative) REIT with an outstanding dividend at that point.