Like many other investors, I dream of retiring early. To help me achieve this I want to make sure I’m invested in some high-growth shares. I also want to invest in future industries that offer massive growth opportunities.
By investing in companies like Team17, which are fast-growing, I’ve already taken a move towards doing this. A company like IT reseller Softcat (LSE: SCT) also offers plenty of potential for share price growth. This growth could turbocharge my portfolio and yours, and get you in a position to retire earlier than if you simply worked for a salary month after month.
This growth share has done well with further to go
Like its competitor Computacenter, which incidentally was my share of the month for August, Softcat has benefited from investor demand for tech shares. The share is, in my opinion a top growth stock, with a lot of future potential.
At present, the company is doing well. It has reinstated its dividends and results have been ahead of expectations. Analysts are generally optimistic about the shares with many having ‘buy’ recommendations.
The group has seen 14 years of organic growth, showing that the business has solid foundations and strong demand for its services. It also shows management has the ability to grow the business without relying on the kind of potentially value-destroying acquisitions that we’ve seen in the past with some other technology companies.
Softcat was one of only 32 stocks named by Peel Hunt in April as the most likely to emerge from the pandemic with stronger market positions. It’s also likely the demand for IT solutions isn’t going away. This is why I think the shares have huge potential. It seems other investors do as well as the drawback is that this growth share has a P/E of 38. But with all that growth potential, I still see it as good value.
A sector with red hot potential
As well as investing in Softcat, I’m also looking at companies connected to the growth of e-commerce. The share price of Amazon is proof that there’s still a massive amount of room for this market to grow. Physical retail still accounts for more of the total value of retail than online does, so there’s still a very long way to go. Globally, e-commerce makes up about 19% of sales. It’s not hard to imagine a day when it will be equal to, or could exceed, physical retail.
The global B2C e-commerce market size is anticipated to reach US$6.2trn by 2027, registering a CAGR of 7.9% over the forecast period, according to Grand View Research.
Tapping into this growth will be warehouse companies like Segro and Tritax Big Box. I think both have massive potential to keep growing, and to provide investors with a very lucrative combination of income and growth. This combination could, I think, help you and I retire before 50. But the key, as always, is to invest as early as possible to give your money time to grow.
By investing in growth shares like Softcat and growth industries like warehousing and e-commerce, I think we could all turbocharge our investments and retire early.
The post I’d buy these high-growth, high-potential shares now to help me retire before 50 appeared first on The Motley Fool UK.
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Andy Ross owns shares in Team17. The Motley Fool UK has recommended Softcat and Tritax Big Box REIT. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
Motley Fool UK 2020