Buying growth stocks and holding onto them for the long term can be one of the greatest ways an investor can boost their wealth. An investor can achieve great returns by acquiring the shares either when the company is in the early days of its life or when they are trading at a discount.
Thankfully, with the Australian share market trading more than 4% lower this month, there are plenty of stocks for us to choose from. However, if I had $10,000 to spend right now, these are the companies I would most likely buy.
1. M2 Group Ltd (ASX: MTU) is an Australian telecommunications company which offers an attractive dividend and far greater growth prospects than its larger peer Telstra Corporation Ltd (ASX: TLS). With brands like Dodo, Commander and Primus in its arsenal, it has a very strong customer base and is a solid bet for the ultra-long term.
2. Nearmap Ltd (ASX: NEA) skyrocketed after it released a very impressive set of full-year results last month but has since trended backwards, tempting investors to take another bite. Considering its fantastic growth prospects, I know I'm certainly considering it. The company is a provider of geospatial mapping technology which is proving incredibly useful across various Australian industries. Its likely expansion into the US market is simply icing on the cake.
3. Coca-Cola Amatil Ltd (ASX: CCL) has its fair share of critics right now, and justifiably so. Its profits have come under enormous pressure and the market is weighing up whether the future will be any brighter (for the record, I'm willing to bet that it will be). Although I don't expect the problems to be fixed overnight, I do have strong faith in the brand and the company's management team to guide it to greener pastures.
4. Yellow Brick Road Holdings Ltd (ASX: YBR) is a wealth management group which has also seen its shares sold-off heavily in recent weeks. Regardless, the future is looking as bright as ever, particularly with Mark Bouris (the founder of Wizard Home Loans, back in the day) at the helm. Although it is yet to hit profitability, it expects to announce its maiden profit in FY15, indicating just how early Yellow Brick Road is into its growth story.