3 actions that can help you get rich in 2024 and beyond

Do you want to become richer in 2024? Of course you do. I’ve got some stocks here that you might consider for your portfolio — but I can’t promise you they’ll go up in 2024. That’s because it’s impossible to know what a particular stock will do, let alone the entire scholarship. perform for relatively short periods. Market corrections and crashes can happen at any time.

However, the market has always recovered from these — and continued to set new highs. Healthy and growing companies will usually bounce back from downturns. So when you invest in the stock market or certain stocks, you plan to stay invested for at least a few years, if not many years. Getting rich through stocks is a marathon, not a sprint.

So here are three actions that can help you get rich in 2024 and beyond.

1. Sony

The Sony Group (NYSE: SONY) is a well-diversified entertainment giant with large operations in games, movies and TV, music, consumer electronics and more.

Its stock is attractively priced at recent levels. Its price-to-sales ratio, for example, was recently 1.19, lower than the five-year average of 1.26. The price is low because Sony has faced some headwinds, such as stiff competition and is reshaping itself — in part by selling some of its financial services operations.

Meanwhile, Sony rewarded shareholders by buying back many shares. It also has a 5-for-1 stock split coming up in October. A stock split is nothing to be excited about as it will only serve to lower the stock price. Current shareholders will have five times as many shares, but the share price will be reduced proportionately, leaving them with roughly the same total value.

2. Shopify

Shopify (NYSE: STORE) has the lowest visibility of these three stocks. That’s because it works behind the scenes, providing a platform that helps people “gain independence by making it easier for them to start, run and grow a business.”

In Shopify’s impressive second quarter, it saw revenue and gross profit both up 25% year-over-year, with gross merchandise volume also up 22%. Revenue from its subscription solutions grew by 27%, which is particularly promising as it is a recurring revenue.

Consider investing in Shopify now because not only is it growing at a good rate, but it can grow stronger thanks to the new artificial intelligence (AI) tools it offers. Bulls expect the company’s net profit margin to increase from single digits to double digits due to the divestment of its logistics division.

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3. Adobe

Adobe (NASDAQ: ADBE) it’s a compelling candidate for your portfolio as well — partly because it’s grown at a good level in the past (its average annual gain over the past decade is 22.6%!) and partly because it looks undervalued at recent levels. Its recent price-to-earnings (P/E) ratio of 26 is well below its five-year average of 32.

The company encompasses a wide range of technologies and products, such as Acrobat, Photoshop, Illustrator, Premiere Pro and Firefly. Like other software majors, Adobe has moved to subscriptions for its products, which results in a lot of recurring revenue — something investors like to see. Better yet, it’s not sitting on the sidelines as artificial intelligence (AI) becomes more widespread and is incorporating AI into its offerings. (Some worry, however, that AI could threaten their business if people use it to do what Adobe’s products used to do for them.)

Adobe recently had a market cap of nearly $240 billion and has a decent shot at becoming a trillion dollar stock by 2035.

If any of these companies interest you, learn more about them and weigh their pros and cons before making an investment decision. And if you’re not sure, add them to your watch list, buy in installments over time, or opt for other solid investments — or even a trusty old index fund.

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Selena Maranjian has positions in Adobe and Shopify. The Motley Fool has positions in and recommends Adobe and Shopify. The Motley Fool recommends On Holding. The Motley Fool has a disclosure policy.

3 Stocks That Can Make You Rich in 2024 and Beyond was originally published by The Motley Fool