$10,000 Invested in These Growth Stocks Could Make You a Fortune Over the Next 10 Years

These stocks provide steady growth that will increase the value of your portfolio and provide you with a tidy sum for your retirement.

You may have heard of instances where investors grew their investments into a tidy sum over the years. To do so, you need to park your money in solid businesses that have a long growth runway or that can latch on to sustainable tailwinds. Over time, $10,000 invested in these companies could multiply into a large sum that you can use for retirement. All you need to do is be patient and select the right companies to invest in.

What types of stocks could compound your wealth over the next decade? You should choose companies with strong market-leading positions, a reputable brand name, a stellar track record of growing their revenue, and a management team that can take the business to the next level. Here are three stocks that fit the bill. And the bonus is that this trio also generates healthy positive free cash flow that should give investors even more confidence in their ability to deliver steady, growing returns.

Coupang

Coupang (CPNG 0.56%) is one of the largest e-commerce players in South Korea with services that include delivery of merchandise and groceries along with prepared foods and video streaming. Coupang has been growing rapidly over the past few years with total revenue rising from $12 billion in 2020 to $20.6 billion in 2022. Net loss has also narrowed significantly from $555.9 million to $92 million over the same period. The number of active customers climbed from 14.9 million in 2020 to 18.1 million in 2022 while revenue per active customer increased from $256 to $294.

The momentum has continued for the e-commerce player in the first nine months of 2023. Total revenue increased by 16.8% year over year to $17.8 billion with the company registering an operating and net income of $341.9 million and $327.3 million, respectively. Investors will also be pleased to know that Coupang generated a positive free cash flow of $1.4 billion for the nine-month period, a sharp reversal from the free-cash outflow of $718.7 million in the prior year. What's more, active customers have risen further to 20.4 million, up 14% year over year, while revenue per active customer came in 7% higher year over year at $303. These numbers are encouraging and point to Coupang's growing presence as it increases both its customer count and average spend. Just this month, the company opened its second fulfillment center in Taiwan and is slated to open a third in the first half of 2024. This opening marks its successful entry into Taiwan in 2022 and Coupang's app ranked No. 1 in Taiwan's shopping app downloads in the second quarter of 2023. With the e-commerce company's market-leading position and clout, investors can look forward to consistent growth in the coming years.

Shopify

Shopify (SHOP 1.76%) offers an e-commerce platform for aspiring entrepreneurs with the tools and functions needed to run their businesses. Shopify has demonstrated healthy top-line growth with revenue climbing by 21.4% year over year to $5.6 billion for 2022. However, a sharp rise in marketing and research and development expenses in that year caused the business to report an operating and net loss. Shopify picked itself up again in the first nine months of 2023 with a 27.2% year-over-year jump in revenue to $4.9 billion. Net income after adjusting for the impairment loss for the sale of Shopify's logistics business came in at $815 million, a healthy turnaround from the $2.8 billion loss in the year before. Moreover, both operating and free cash flow for the period were positive at $496 million and $459 million, respectively. Management also raised its revenue growth outlook for the remainder of 2023.

Shopify is continuously improving its product and service offerings to its clients and recently launched a new retail pricing plan called the Retail Plan for brick-and-mortar businesses selling in person. Meanwhile, the company also expanded the availability of its mobile point-of-sale system to the U.K. and Ireland while releasing new enterprise-grade payment hardware for the U.S. and Canadian markets. Shopify Audiences, which is available to Shopify Plus customers who use the company's payment infrastructure, can now connect to major advertising platforms such as TikTok, Snap, and Criteo. This functionality can halve customer acquisition costs and allow businesses to advertise better to find new customers. Shopify also partnered with Amazon to launch a "Buy with Prime" app to allow shoppers to shop on Shopify and check out with their Amazon account. These upgrades and collaborations should position Shopify well for further growth in 2024 and beyond.