I’ve bought these 3 magnificent growth stocks for my ISA to build generational wealth

Edward Sheldon believes these growth stocks have the potential to generate significant wealth for his family over the next few decades.

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Investing in growth stocks can be an excellent way to build generational wealth. Just ask anyone who bought shares in Amazon 20 years ago (a £10k investment two decades ago would now be worth about £1.3m).

Here, I’m going to highlight three growth stocks I’ve bought recently in an effort to build wealth for future generations. There’s no guarantee that they’ll do well, of course, but I’m very optimistic about their long-term prospects.

The future of transport

First up is Uber (NYSE: UBER). It’s the largest rideshare company in the world.

While Uber is a large company by UK standards, it’s still small on a global scale. Currently, its market-cap is just $140bn (compared to $3.4trn for Apple).

At that valuation, I see plenty of room for growth. Today, Uber’s revenues and earnings are rising rapidly. And in the long run, I think the company should do really well as robo-taxis emerge (these could dramatically lower its operating costs).

Regulation is one risk here. Another is competition in the robo-taxi space from Tesla.

With its powerful brand and massive user base, however, I’m backing it to do well. Ultimately, I can see the group joining the exclusive trillion-dollar market-cap club one day.

Fighting the obesity battle

Next, we have Novo Nordisk (NYSE: NVO). It’s a Danish pharmaceutical company that has a listing in the US.

The reason I’ve invested in this company is that it’s the maker of Wegovy. This is a weight-loss drug that can help people with obesity lose up to 15% of their body weight.

Recently, sales of Wegovy have been extraordinary. But this could just be the beginning. According to analysts at Barclays, the weight-loss drug market could be set to grow roughly 10-fold by 2030. If this forecast proves accurate, I expect this stock (and the value of my portfolio) to be much higher by then.

Competition from other pharma companies such as Eli Lilly and AstraZeneca is a risk here. But given the projected size of the market, I think there’s room for multiple players.

A play on the travel boom

Finally, I’ve invested in Airbnb (NASDAQ: ABNB), the largest home rental platform in the world.

This company has generated amazing growth in recent years (revenues have nearly tripled over the last five years, despite the pandemic). But I reckon it’s just getting started. The reason I say this is that the next decade looks set to be a golden era for the travel industry. That’s because cashed up Baby Boomers are retiring in droves and looking to travel the world.

Like Uber, this company’s potentially at risk from regulation. New rules could stifle its growth.

I think the company has all the right ingredients to be a winner in the long run though. After all, its brand is a verb these days and has a huge market share.

Taking a long-term view

It’s worth noting that all of these stocks are US-listed, meaning there’s some foreign exchange risk for me. They all have relatively high valuations too, which is another risk.

Taking a 10-20-year view however, I believe these stocks have the potential to generate substantial wealth for my family.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Ed Sheldon has positions in Airbnb, Amazon, Apple, Novo Nordisk, and Uber Technologies. The Motley Fool UK has recommended Airbnb, Amazon, Apple, AstraZeneca Plc, Barclays, Novo Nordisk, Tesla, and Uber Technologies. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

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