BAM - Growth in Financials: This Stock Can Double by 2030
2023-09-22 08:44:00 ET
While we'd all love to find a stock that could double our money virtually overnight, those opportunities are rare (and often risky). A much more realistic way to find stocks that can double your money is to follow the rule of 72. This quick formula estimates the years it would take for an investment to double, given an expected annual rate of return. You divide 72 by the expected return to get the number of years it would take for that investment to double.
For example, an investment that can deliver a 12% annual return would double an investor's money in six years. While that's higher than the average stock market return , many companies can deliver returns at or above that level.
Brookfield Asset Management (NYSE: BAM) is a likely candidate. The global alternative asset manager expects to grow its earnings and dividend by 15% to 20% per year through 2028, with the potential for faster growth after that. Because of that, the financial stock could easily double in value by 2030.
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Growth in Financials: This Stock Can Double by 2030