It’s essential to have a portfolio that’s diversified across asset classes. This includes risk-free investments like treasury bonds. Exposure to precious metals is also a good hedge against inflation to preserve purchasing power. However, exposure to stocks can help individuals retire a millionaire.

Blue-chip names provide stability and regular cash inflow through dividends, even within the stock portfolio. Capital gains are likely to be modest. It’s exposure to growth stocks and small-cap stocks that can deliver multibagger returns.

Of course, these returns are unlikely in a year or two. Investors need to hold quality growth stocks with a time horizon of at least five years.
I also believe it’s one of the best times to create a stock portfolio for retirement. The reason is a deep correction in growth stocks. Once market sentiments reverse, fundamentally strong growth stocks will surge from depressed valuations.

Let’s talk about seven stocks to buy to retire a millionaire.

Block (SQ)

Block (NYSE:SQ) stock has been on a sustained correction mode. However, the business remains attractive and I would bet on SQ stock delivering multibagger returns.

One reason for the steep correction in SQ stock is the crash in cryptocurrencies. The company was rebranded as Block to emphasize on the focus related to Bitcoin (BTC-USD) and blockchain technology.

It’s impossible to talk about the recovery in cryptocurrencies. However, there is no doubt that blockchain technology adoption is increasing. As a small example, retailers, including Walmart (NYSE:WMT) have been using blockchain technology for supply chain and food traceability.

Back in 2021, it was also reported that Block is building a business dedicated to “decentralized financial services” using Bitcoin.

It’s also worth noting that Cash App remain attractive with the ecosystem delivering a gross profit of $705 million for Q2 2022. The buy now pay later platform, Afterpay will also be a potential cash machine in the next few years.

Riot Blockchain (RIOT)

Staying with Bitcoin and crypto stocks, I am also bullish on Riot Blockchain (NASDAQ:RIOT). I would not be surprised if RIOT stock is a ten-bagger once Bitcoin trades above $50,000. The stock traded at highs of $46.3 and currently trades at $5.7.

Of course, it’s a high-risk stock with the upside thesis solely depending on another bull market for cryptocurrencies. It’s, however, a risk worth taking, with Bitcoin halving due in May 2024.

It’s also unlikely that aggressive contractionary monetary policies will continue. When easy money is back in the financial system, and the dollar weakens on a relative basis, cryptocurrencies will surge.

Specific to Riot Blockchain, the company has been boosting mining capacity. The company has a current hash rate of 5.6EH/s. The target is to increase capacity to 12.6EH/s by Q1 2023. The company’s digital assets will swell with the doubling of mining capacity. The company already has 6,775 Bitcoin on its balance sheet.

Lucid Group (LCID)

Another industry that has tailwinds beyond the decade is electric vehicles. Lucid Group (NASDAQ:LCID) stock has disappointed with a correction of almost 70% for year-to-date 2022. At current levels, the stock is a long-term buy.

Broad correction in EV stocks is one reason for the downside. Further, the downward revision of production guidance for 2022 has also disappointed the markets. The potential dilution factor is also a contributor to the correction. Lucid has also filed to sell securities worth $8 billion.

However, there are several positives. Aggressive international expansion will support growth. The company already has 37,000 reservations for Lucid Air, which implies potential sales of $3.5 billion. Lucid also expands in Europe and has commenced constructing a new plant in Saudi Arabia.

With an innovation edge, Lucid is positioned to survive and grow amidst intense competition. Recently, the company also introduced Lucid Air Sapphire, which is being touted as the most powerful sports sedan. Therefore, once supply chain concerns ease, LCID stock will trend higher on robust delivery growth.

Coupang (CPNG)

E-commerce stocks have been out of favor, with the markets discounting slower growth in a post-pandemic era. The industry is, however, positioned for steady growth, and it’s a good time to grab some undervalued stocks. Coupang (NYSE:CPNG) is among the stocks to buy to retire a millionaire.

The likes of Amazon (NASDAQ:AMZN) and Alibaba (NYSE:BABA) have already demonstrated the cash flow potential of the business model. CPNG stock was depressed, with the company reporting significant cash burn. However, the company has guided for positive adjusted EBITDA in 2022. With steady revenue growth, EBITDA margin improvement will likely sustain in 2023.

As of March 2022, Coupang reported 18 million active customers. The total number of Korean online shoppers is estimated at 37 million. Therefore, there is ample headroom for growth within Korea. At the same time, Coupang is expanding internationally. Some initial markets include Japan and Taiwan.

Tilray Brands (TLRY)

To retire a millionaire, I would also consider exposure to marijuana stocks. Once the regulatory headwinds wane, sales will likely surge with a significant addressable market.

Tilray (NASDAQ:TLRY) seems well-positioned to benefit over the next decade. While several cannabis companies struggle with cash burn, Tilray has adjusted EBITDA positively. Furthermore, the company expects to report positive free cash flows in 2023.

Another big reason to like Tilray is its global reach. The company is already present in the United States, Canada, Europe, Latin America, and Australia. With recreational and medicinal cannabis products, the addressable market is significant.

I, therefore, believe that the company’s target of achieving $4 billion in revenue by 2024 is realistic. Of course, a lot depends on how soon cannabis is legalized at the Federal level in the U.S. Even with a delayed legalization scenario, TLRY stock will be a ten-bagger within the next few years.

Solid Power (SLDP)

Solid Power (NASDAQ:SLDP) stock has declined by 50% in the last 12 months. The steep correction is a good buying opportunity, with solid-state batteries likely to be a game changer.

In June, Solid Power announced that the pilot line for EV cells had been installed. Towards the end of the year, the company will deliver silicon EV cells to automotive partners. This is an important step towards the qualification roadmap and a potential catalyst for stock upside in 2023.

If the test results are positive, Solid Power has clear growth visibility. It’s worth noting that the company’s automotive partners include Ford (NYSE:F) and BMW (OTCMKTS:BMWYY). Both these companies have ambitious growth plans in the EV segment.

The backing of Ford and BMW also ensures that the company has no financial constraints. Solid Power already has a cash buffer of $534 million, and there is unlikely to be any dilution in 2023.

Lithium Americas (LAC)

With the anticipated surge in the adoption of electric vehicles, the demand for lithium will swell. Lithium Americas (NYSE:LAC) is an emerging lithium resource company with multibagger potential.

To put things into perspective, Lithium Americas has a current valuation of $3.2 billion. The company’s lithium asset in the U.S. has an after-tax net present value of $2.6 billion. Furthermore, the asset in Argentina (Cauchari-Olaro) has a mine life of 40 years and is expected to deliver an average annual EBITDA of $308 million.

Clearly, current valuations seem attractive, considering that as lithium trends higher, cash flows will swell. Once the initial assets start generating cash flows, Lithium Americas will also be positioned for further expansion.

With stage one production from Cauchari-Olaro likely in the next few months, LAC stock has an upside catalyst. The company is financed with $500 million in cash buffer for the next 12-18 months. The company also expects to commence construction at the Thacker Pass asset in 2023.

On the date of publication, Faisal Humayun did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.