Key points
- Argo blockchain operates in a high-growth market, and it’s investing more in it.
- Informa is positioning itself for growth in China and the U.S, two of the largest markets in the world.
- Watches of Switzerland is set to benefit from the continued growth of ultra-wealthy individuals.
To build wealth, you need to have a clear goal of where you are and where you want to go. Clarity of vision allows you to determine which stocks to buy and how much money to invest. The only problem is that markets are not linear. As such, finding a stock that can give you the results you want can be a challenging task.
Luckily, by focusing on the macro environment and a stock’s core fundamentals, you can find stocks that can give you the results you want. For instance, these three unstoppable UK shares could turn £200k into £1 million by 2030.
Argo Blockchain
By virtue of its target market, Argo Blockchain (ARB) has what it takes to turn £200,000 into £1 million in the next 9-years.
Argo’s primary business is Bitcoin mining, and the more the value of Bitcoin, the higher the underlying value of this stock.
Between now and 2030, there is a good chance that Bitcoin could trade at hundreds of thousands of dollars per coin. Already, it is showing every indication of possibly closing 2021 above $100k. If this happens, then by 2030, prices above $500k could be a possibility.
The key factor behind such a move is the Bitcoin block halving. The block halving has been the primary driver of Bitcoin’s rally over the last ten years and is likely to be the same scenario in the next 10. For context, the next halving is in 2024 and will shrink the Bitcoin block rewards to just 3.125 BTC.
If this has the effect of pushing Bitcoin to hundreds of thousands of dollars per coin, then the impact on the valuations of companies like Argo could be pretty huge. That’s because the underlying value of its balance sheet would shoot up as well.
Argo is also making moves that will help it take advantage of the ever-growing importance of cryptocurrencies in the world economy. The company recently announced that it was expanding its mining capacity.
As part of its capacity expansion plans, the company has bought 20,000 Bitmain AntMiner S19J Pro Machines. It also announced that the new machines will push up its hash rate by more than two exahashes by 2022.
This means going forward, the revenues that the company generates from Bitcoin mining will go higher in the short term, even if there is little to no increase in Bitcoin’s price in the same period.
It’s a stock that has the potential to turn £200,000 into £1 million much earlier than 2030. A crypto rally after 2024 Bitcoin block halving could easily see this happen in just 4-years.
Informa
The outlook for tech exhibition firm Informa (INF) looks pretty promising. This is mainly driven by the continued reopening of the world economy. The optimism around the economic renewal post-pandemic has seen this stock rally by 58% since early 2021.
Beyond the short-term kick that this stock has received from the ongoing economic reopening, this company is making strategic moves that will drive up its revenues, and by extension, its value, long-term.
Back in July, the company announced that in 2022, it would target its exhibitions in China, the United States, and the Middle East. This is a big deal because the U.S and China are the two largest tech exhibition markets in the world.
By increasing its market share in these two countries, Informa will be in a good position to grow its intrinsic value going into the future. The Middle East, especially the UAE, and Saudi Arabia are emerging as strong tech hubs too. This means this region could also help drive up this company’s revenues going into the future.
Informa is so optimistic about its prospects in these markets that it has raised its revenue forecasts for 2022. In its most recent update, the company announced that it expects revenues of £1.8 billion in 2022, up from an earlier forecast of £1.7 billion.
This is driven by the over 100 events that the company has planned between now and 2022 in these regions. It’s definitely a top stock to buy now if you have prospects of growing a £200k investment into £1 million by 2030.
Watches of Switzerland
Watches of Switzerland (WOSG), the maker of luxury watches and other luxury items, has performed pretty well over the past year. It’s up by 226% in the last 52-weeks of trading. It has recorded this strong growth despite the economic disruptions that came with the COVID-19 pandemic.
That’s largely because, like in all other periods of financial downturns, the ultra-wealthy are always the least affected. They tend to scale up their purchases of high-end fashion items in such periods.
Besides this upsurge in pandemic period spending, demographics are in this company’s favour. The number of newly wealthy individuals is on the rise. This is largely driven by a boom in tech stocks and other tech-related investments such as cryptocurrencies.
This is evident in the Forbes 400 list for 2021, where tech people now dominate the list. With technology taking over all spheres of life, new money is likely to grow over the next 9-years. This spells good tidings for companies like Watches of Switzerland that deal in luxury items. Based on this, WOSG’s chances of turning £200k into £1 million over the next decade are pretty high.
Besides, its internal fundamentals are pretty good too. The company has a current ratio of 1.66, which means it has more than enough resources to cater to its short-term debt obligations. It is also net cash flow positive, which means it has what it takes to run its operations without interruptions. This is an important consideration because the business environment is unpredictable, and when making a long-term investment, a company’s ability to navigate challenges is essential.
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