Buying growth stocks and holding onto them for the long term can be one of the greatest ways an investor can build their wealth. By acquiring the shares when the company is in its early days and remaining patient over the years, an investor can let the power of compounding work its magic, thus giving them a good chance at beating the returns of the S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO).
Last week, my fellow Motley Fool writer Owen Raskiewicz named the four growth stocks he would buy in 2015 if he had $10,000 to invest, selecting Slater & Gordon Limited (ASX: SGH), Ardent Leisure Group (ASX: AAD), M2 Group Ltd (ASX: MTU) and G8 Education Ltd (ASX: GEM) as his top choices.
While each of the companies he chose represent fine businesses, I thought I would also share which companies I would buy (or top-up on) if I had the same capital to spend in the new year.
1. Nearmap Ltd (ASX: NEA) would be amongst my top choices of stocks to buy – particularly following its recent decline in price. Nearmap is a provider of ultra-high resolution aerial photographs which have proven incredibly useful in Australia, while they are now expanding into the much larger U.S. market. With a market cap of just $225 million, Nearmap is a risky play but could deliver enormous returns over the coming years.
2. Collection House Limited (ASX: CLH) is a stock I already own, but I am very keen to increase my stake. The debt collection company maintains an enviable track record for revenue and earnings growth and earlier this year announced its plans to significantly expand office space to accommodate future growth. Trading on a P/E ratio of just 14.5x and offering a grossed-up 5.4% dividend yield, it's easy to see why I want to top up my holdings in 2015.
3. I have to agree on Owen's strong call for up-and-coming telecommunications business M2 Group. Armed with subsidiaries such as Dodo and Primus, the company has plenty more room to grow than the much larger Telstra Corporation Ltd (ASX: TLS) and is a solid bet for 2015 and beyond.
4. Coca-Cola Amatil Ltd (ASX: CCL) rounds out this list as an outstanding stock to buy for 2015. Although 2013 and 2014 were plagued with declining sales and a huge tumble in share price, 2015 is shaping up as being the beverage manufacturer's return to form. With its shares still hovering near a six-year low, a buy now could reap huge returns in 2015 – particularly with the stock trading on a forecast yield of 4.6%, franked to 75%.
