New Investor? Buy These 2 Growth Stocks

 New investor? Buy these 2 growth stocks

The initial stages of the investment journey can sometimes be daunting. One thing I would encourage new investors to keep in mind is that investing doesn't have to be overly complicated - especially in the beginning, because overcomplicating it can lead to a loss of interest and a permanent rejection of the idea of ​​investing in stocks.

For anyone who has a long-term time horizon and is willing to be patient, the stock market can be a massive wealth generator. Of course, it can also have the opposite effect if it is not taken seriously. But for those willing to remain patient and avoid rash decisions, the stock market can be a great place to put your money to work.

Building a portfolio from scratch

Diversification should come first when building an investment portfolio. If you plan to invest in individual stocks, I would consider adding a few well-diversified exchange-traded funds (ETFs). They may cost a small fee to own, but the diversification an ETF can provide to a portfolio is priceless.

For some investors, owning an ETF is as far as they can go. And there is absolutely nothing wrong with that. But for those willing to put in the time and take a more hands-on approach to their investment portfolio, owning individual stocks is the logical next step.

Fortunately, there's no shortage of TSX stocks with an impressive track record of delivering jaw-dropping returns. I reviewed two of them, which companies are ideal for growth investors who are willing to hold them for the long term.

With a high interest rate environment cooling demand for personal loans, the consumer-facing financial services provider found itself trading at a massive discount. Shares are down nearly 40% from all-time highs set at the end of 2021.

Despite the stock's recent pullback, goeasy shares have still significantly outperformed the market recently. The stock is up more than 150% over the past five years. By comparison, the S&P/TSX Composite has returned less than 30%, excluding dividends.Investors may need to act fast if they hope to take advantage of this discount. Goeasy shares are up nearly 50% since May, well on their way to new all-time highs.

Growth Stock #2: Constellation Software

With a price tag approaching $3,000 per share, Canadians will have to pay to own one of the biggest tech stocks on the TSX. However, for those willing to shell out the cash, it's still a solid growth stock.Despite the sheer size of Constellation Software's market cap, which now exceeds $50 billion, the stock continues to deliver market-beating returns. The stock is up nearly 200% over the past five years, easily outperforming the broader market's return.

Many Canadian tech stocks were trading at discounts after a losing year in 2022. Not Constellation Software though. Last year, the company barely managed to finish. And with a 30% year-to-date return, the stock is trading just shy of all-time highs.

Before you consider Constellation software, you'll want to hear this.

Our research team just revealed the top 5 stocks for investors to buy in July 2023, and Constellation Software was not on the list.Motley Fool Stock Advisor Canada, an online investment service they've been running for nearly a decade, is beating the TSX by 29 percentage points. And right now, he thinks there are 5 stocks that are better to buy.

For a new investor, diving into the world of stocks can be exciting and overwhelming. The key to success lies in finding growth stocks that have the potential to provide significant returns over the long term. In this article, we'll introduce you to two exciting growth stocks that are poised to benefit from market trends and provide you with valuable insights to jump-start your investment journey.

Tech Titans: [Company Name]

When it comes to growth stocks, technology companies consistently show remarkable potential. One such leader is [Company Name], the market leader in [industry/segment]. The company is at the forefront of innovation, constantly pushing the boundaries of what is possible in [industry/niche].

[Company Name] has demonstrated impressive year-over-year revenue growth driven by its pioneering products and services. Its dedication to research and development ensures it stays ahead of the competition, making it an attractive choice for investors looking to ride the wave of technological advancement.[Include keywords: tech stocks, growth potential, innovation, market leadership, revenue growth, R&D]

Green Revolution: [Company Name]

The world is undergoing a significant shift towards sustainability, and companies that contribute to this green revolution are well positioned for explosive growth. [Company Name], a pioneer in [green industry/niche], is a prime example of a stock that is in line with this trend.

With a strong focus on [renewable energy sources/sustainable practices], [Company Name] not only has a positive impact on the environment, but also attracts a growing customer base that values ​​environmentally conscious products and services.

 This unique positioning provides a competitive advantage that is essential for sustained growth in the long term.[Include keywords: green stocks, renewable energy, sustainable practices, environmental impact, competitive advantage, green]

As a new investor, it is essential to identify growth stocks that are in line with market trends and have a strong competitive advantage. [Company Name] and [Company Name] are excellent examples of such stocks, each operating in a different but high-potential sector. When you consider these stocks as part of your investment portfolio, you'll be on your way to potentially substantial returns as these companies continue to thrive in their respective industries.

Remember that doing thorough research and staying informed about market developments will lead to your success as an investor. As you embark on this exciting journey, keep an eye on these growth stocks and be ready to seize the opportunities they present.