2 growth stocks for the next 10 years and beyond

Good growth. Growth stocks offer higher than average growth rates for the market. If a company is growing rapidly, then its earnings should increase and so should its stock price. Here are two growth stocks I plan to keep in my portfolio for the next decade and beyond.

Renewable energy storage

Renewable Energy Infrastructure Group (LSE: TRIG) invests in onshore and offshore wind and solar farms in the UK and Europe. This trust was first registered about ten years ago. It has increased its renewable energy generating asset base to around £3.7bn since then. The UK and the EU want to increase the amount of renewable energy generating capacity for decarbonising and security reasons. There is scope for TRIG to continue to grow its asset base even more over the next 10 years.

If this belief can increase the net asset value (NAV) per share over the next decade, then the share price should continue as the two usually move together. But now TRIG stock is selling at a 5% discount to NAV. I think that makes a good entry point. But it may also reflect investor concerns about energy caps and wind taxes, rate hikes, and cooling energy price inflation.

This is a valid concern. TRIG uses a revolving credit facility to purchase assets and then pay off debt by raising equity. Higher rates make this more expensive. Income is tied to inflation. However, such confidence has been achieved without excessive inflation in the past. Rates are expected to drop. Over the next decade, I think TRIG will continue to drive higher NAV and share price, so I’m holding it.

Tabletop growth stocks

Games workshop (LSE: GAW) and the Warhammer franchise have delivered 21% sales and 33% earnings-per-share growth on average over the last five years. That’s better than the market average. And the company has an excellent management team with a long-term strategy that is always clear and consistent:

• Continue to develop the intellectual property of Warhammer, and make the hobby based around it and the business better and better
• Create the world’s best fantasy and sci-fi tabletop gaming products
• Explore licensing agreements outside of your core business for intellectual property (IP)

Games Workshop struck a deal with Amazon to create TV shows, movies, and merchandise from the Warhammer IP, and longtime Warhammer fan Henry Cavill is set to star. This is the type of bond that should result in higher licensing revenues for years to come.

Of course there is no guarantee that brings fantasy or sci-if the settings for the big (or small) screen will work as expected. Amazon and Netflix understand this. A bad adaptation won’t bring many new fans the way Games Workshops does and could disrupt its core fan base. But I think the Amazon tie-up is an exciting prospect regardless.

It should make Games Workshop’s long-held goal of getting a triple A Warhammer video game developed by a major studio easier to achieve. That and, whatever Amazon produces, should boost licensing revenue over the next 10 years and boost demand for the company’s core business products and services. That’s why I plan to Workshop Games in Stocks and Shares ISA for the next decade.