Written by Jed Lloren at The Motley Fool Canada
Are you hoping to be rich by retirement? One way to do that would be to invest in growth stocks. The tech industry, in particular, offers investors a lot of excellent companies that could make you rich in a few decades’ time. By accumulating shares of top tech stocks and holding them for years, you could see some major gains. In this article, I’ll discuss three top tech stocks that could help make you rich by retirement.
You don’t need to focus on very risky companies
When people think about investing in tech stocks, they often turn to the hottest emerging companies. Often, those stocks are very volatile and can be very difficult to watch in your portfolio. However, there are blue-chip tech stocks that still beat the market every year. Constellation Software (TSX:CSU) is one of those companies. Founded in 1995, it has been acquiring vertical market software businesses and helping transform those acquisitions into exceptional business units.
Constellation Software’s strategy has been refined over the years, helping the company solidify itself as a major player among its peers. We can see the fruits of Constellation Software’s efforts in its stock price. Since its initial public offering (IPO) in 2006, the stock has gained nearly 15,300%! Over the past year alone, it has gained 45.5%. If there’s one tech stock that I’d buy to help make me rich by retirement, it’d be Constellation Software.
One of my favourite companies in the world
Another great tech stock that investors should consider buying today to help make them rich by retirement is Shopify (TSX:SHOP). This is a company that needs very little introduction at this point.
Formerly Canada’s largest company (by market cap), Shopify is constantly in the spotlight. This occurs due to good and bad reasons. For instance, in 2020, Shopify was ranked as the top-performing stock on the TSX over a running three-year period. However, last year, Shopify also made headlines for laying off 10% of its workforce.
Since its IPO in 2015, Shopify stock has gained more than 2,000%. That’s a very impressive run. With the e-commerce industry poised to continue growing over the next decade, I believe Shopify could see similar growth in its stock.
Another play on the e-commerce industry
Finally, I believe Nuvei (TSX:NVEI) could be a major winner over the coming years, helping shareholders become rich by retirement. If you believe that the e-commerce industry will continue to grow for years to come, then Nuvei should be a no-brainer for you. This company provides merchants with an omnichannel payments platform. Using its platform, merchants can accept online, mobile, in-store, and unattended payments.
Nuvei stock has had a rough go at it since its IPO. The stock started off well, closing its first day as Canada’s largest tech IPO in history. However, thanks to a short report and a bear market that caused growth stocks around the world to suffer, Nuvei now sits below its IPO price. I think this company has a bright future ahead, and investors could buy tons of shares right now at a massive discount.
The post 3 Top Tech Stocks That Could Help Make You Rich by Retirement appeared first on The Motley Fool Canada.
Before you consider Constellation Software, you'll want to hear this.
Our market-beating analyst team just revealed what they believe are the 5 best stocks for investors to buy in August 2023... and Constellation Software wasn't on the list.
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Fool contributor Jed Lloren has positions in Constellation Software and Shopify. The Motley Fool has positions in and recommends Nuvei and Shopify. The Motley Fool recommends Constellation Software. The Motley Fool has a disclosure policy.