If you want to be a millionaire, you're not alone. The $1 million milestone is the ultimate goal for many Americans as they seek the financial security and personal power that being a millionaire gives them.
Investing in the stock market is a great way to reach your millionaire aspirations. Even those with modest savings can get there. But be forewarned: it'll take time. Investing $300 a month at the 8% average return that a typical portfolio of stock index funds and other investments has generated historically, you'll have to put in 40 years of hard work to hit the $1 million mark.
The right stocks can beat the market and shorten the journey. Boost your return to somewhere between 10% and 15%, and you'll become a millionaire five to 15 years sooner. Achieve even better returns, and you'll reach your goal even earlier.
Market-crushing stocks usually feature growth rates well above the average, with businesses in promising areas with long-term potential. Below, you'll find three stocks that have a lot of favorable attributes. These stocks, and others like them, can be powerful allies in your quest to become a millionaire -- if you're willing to take on the level of risk they entail.
1. SoFi Technologies
The fintech space has become a high-growth area at the intersection of financial services and information technology. SoFi Technologies (SOFI 2.45%) recently became one of the most recent companies in the fintech area to come public, with a special purpose acquisition company merger reaching completion just a few months ago. SoFi's business started out specializing in offering personal and student loans to borrowers, but it has expanded dramatically to include an everwider range of financial services. You can now have a savings account, get a car loan, or even invest through its brokerage unit.
In addition to SoFi's consumer-facing financial services platform, the company also offers its core technology as a third-party provider to financial institutions. Through its Galileo unit, SoFi can help financial businesses tap into payment networks, handle card-based transactions, and even build digital banking capabilities.
Both parts of SoFi's business have grown dramatically, as the number of consumers becoming SoFi members having tripled in the past two years and the number of Galileo accounts having quadrupled in the same timeframe. With two separate angles on the industry, SoFi doubles its chances of producing strong results even during periods of inevitable volatility for the sector as a whole. With a market capitalization of under $15 billion, moreover, SoFi is still small enough to offer impressive long-term growth prospects.
2. CrowdStrike Holdings
With the rise of cloud computing, the need for cybersecurity has never been greater. CrowdStrike Holdings (CRWD 9.93%) has built up an impressive platform to help big businesses protect their cloud-based assets, with subscription-based modules that allow customers to pick and choose the functionality they most need right now and then add extra protection as those needs grow.
Yet CrowdStrike has only begun to tap into its huge addressable market. Last week, the share price climbed as a key stock analyst noted that CrowdStrike has the potential to see ninefold growth in its customer counts between now and 2025. That in turn could send the company's already-impressive recurring revenue numbers soaring even higher.
CrowdStrike's sales have quadrupled in just over two years, and the company is already profitable on an adjusted basis. Even though the stock has already soared to give CrowdStrike a market cap above the $50 billion mark, the nature of the business provides plenty of growth opportunities for further shareholder gains.
Lastly, it's often smart to look at the impact that popular trends have internationally. The U.S. e-commerce market has had decades to mature, but in Latin America, MercadoLibre (MELI 1.18%) got out to an early lead and has retained a powerful leadership position in the e-commece industry throughout much of the Western Hemisphere.
MercadoLibre's business includes a number of valuable assets. The company's namesake e-commerce marketplace has been a big growth driver, especially as the pandemic drove more shoppers online for basic necessities as well as discretionary purchases. Meanwhile, the Mercado Pago electronic payment network has not only facilitated MercadoLibre platform transactions but now has a substantial presence beyond that platform, becoming a key player in its own right. Other ancillary services like the Mercado Envios shipping service and Mercado Credito financing alternatives are also seeing substantial success.
Sales at MercadoLibre have tripled since 2018, and impressive cash flows have allow it to reinvest in the growth of its business operations. That's been a recipe for success for e-commerce giants in the U.S. and elsewhere, and it's working well for MercadoLibre so far.
Ride great stocks to financial success
Don't short-change your aspirations to become a millionaire. It takes effort, but $300 a month and some great stocks can get you on track sooner than you might think possible.