We all would love to be millionaires, and one path to get there is through investing. Of course, each stock you pick, on its own, is unlikely to generate millions, but together, over the long term, your investments could grow to $1 million or more.
Ideally, you'll want to own a portfolio of at least 25 stocks and hang onto your picks for a decade or more to benefit as they grow. The ultimate size of your gains will also depend on how much you invest over time. But don't worry: You don't have to invest a huge amount right out of the gate. Even $100 a month or every few months could grow into a huge sum over time.
How to get started? Choose companies with solid earnings track records that also have great prospects -- market leaders such as Apple or Johnson & Johnson, for example. Then, add a few younger companies with enormous growth potential to the mix, as their shares truly may soar as they launch new products or services, or win large market shares with their innovations. And one of the best places to find such high-growth companies is in biotech. In my view, these three players, held as part of a diversified portfolio, could be millionaire makers.
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1. CRISPR Therapeutics
CRISPR Therapeutics (CRSP 0.34%) just reached a huge moment in its story as a company. Along with partner Vertex Pharmaceuticals, it earned the world's first authorization for a gene-editing treatment that uses the "CRISPR technique." Health regulators in the U.K. authorized exa-cel -- known commercially as Casgevy -- for the treatment of two blood disorders: sickle cell disease and beta-thalassemia.
Now, in the U.S., CRISPR Therapeutics expects Food and Drug Administration (FDA) decisions on exa-cel for sickle cell in December and beta-thalassemia in March. And European Union regulators may issue decisions in the near future too.
Exa-cel/Casgevy should bring in blockbuster revenue since treatment options for both of these genetic disorders are limited, and this treatment offers a functional cure. Patients and doctors could flock to it.
The U.K.'s recent authorization and any future approvals will also serve as votes of confidence in CRISPR Therapeutics' gene-editing technology, which is used across its pipeline. So this win for exa-call bodes well for the company's other candidates down the road.
2. Moderna
Moderna (MRNA 1.69%) shares have been in the doldrums in recent times as investors weigh the outlook for its COVID-19 vaccine revenue in a post-pandemic world. But that isn't dampening my enthusiasm about this biotech company.
Here's why. Yes, we know Moderna's blockbuster coronavirus vaccine is unlikely to deliver the same levels of revenue it did during the height of the pandemic. Still, the vaccine probably will remain a blockbuster and contribute recurring revenue during the annual vaccination season.
Even better, Moderna is on track to launch as many as 15 new products over the coming five years. These could lead to $30 billion in annual revenues a few years later. That's huge -- and even if Moderna launches only a third of those planned products in that time frame, it could deliver significant growth.
Today, Moderna is a one-product company, but that situation is unlikely to last for long. And next to be released -- in 2024 -- could be the company's respiratory syncytial virus vaccine. It's under regulatory review right now.
3. Axsome Therapeutics
Axsome Therapeutics (AXSM 0.27%) quickly went from a clinical-stage company to a commercial-stage company last year when it launched its first two products: Sunosi for sleep disorders, which it acquired from Jazz Pharmaceuticals, and Auvelity, an antidepressant that it developed in-house.
The two products already are delivering growth, with Sunosi's revenue climbing 20% year over year in the third quarter and Auvelity's advancing 36% from the second quarter. (Auvelity only launched in October 2022, so it was too early to offer year-over-year comparisons.) Noting the positive trend for Auvelity, Axsome is increasing its sales force to reach doctors who write the majority of antidepressant prescriptions.
These two products represent growth catalysts now and down the road for Axsome -- but they may be joined by many others. All of Axsome's pipeline programs are in phase 2 or later stages of development, meaning they've passed many safety and efficacy hurdles on the road to possible commercialization.
So Axsome has several potential catalysts that could drive your investment higher, making it a terrific addition to a millionaire-maker portfolio.
