It is possible to make millions trading stocks. This is actually a function of how well the stock has performed, the original amount invested and any amounts re-invested over the years as well as the use of sound compounding principles. Many retail investors are not skilled at such things and would only want to know how much money their investments would have been worth over time.
Here are three examples of stocks that might make any retail investor adopting the most conservative of the “buy and hold” strategies, a lot of money over the last ten years.
Biotechnology stocks have been a major beneficiary of the boom years of the stock markets since the Quantitative Easing Program of the US Federal Reserve was put in place a few years ago. We have to cite the example of this Biotech stock because of the times we are in. Suddenly, it seems like 2008 is back here with us again with massive selloffs and panic seizing the stock markets across the globe. So let us paint the picture with this stock which was one of those that suffered greatly during the global financial crisis on 2008. But between 2010 and 2015, PCYC rose an astonishing 8,700%. So if you had invested $500 into this stock in 2010, your stock would be worth $43,500. If you had invested $50,000 into this stock in 2010, your stock would now be worth an amazing $4,300,000.
Only 10 stocks have beaten the performance of Google since it launched its Initial Public Offering (IPO) in 2004. Google started trading on the markets at $85 and its IPO was actually considered a disappointment by many industry experts at the time. In the last ten years since, Google’s stock has ramped up 1,294%, which would put a $100,000 investment made at the $85 IPO price to be worth around $1,394,588 in today’s terms. With a compounded return year-on-year of 30.15% over the last ten years, the stock’s performance was five times better than the compounded annual return of the S&P500 index over the same period.
Keurig Green Mountain (GMCR:Nasdaq)
We mentioned that 10 stocks outperformed Google in the last 10 years. So which ones actually did outlast Google in performance? Well, everyone knows that Apple is one of such stocks, but we round off by focussing on Keurig Green Mountain, which has actually been the best performer among the stocks which outdid Google in the last ten years. GMCR sold for a measly $1.47 in 2004. At the height of its fame in 2014, GMCR had actually topped $115 per share, which would have made a $14,700 investment into this stock in 2004 worth $1,150,000 ten years later. Even at present levels of just under $52 at the time of writing this, this still represents a monumental 3,493% increase in the last 11 years. What an amazing return on investment.
We are faced with another market crash, but these stocks should point to us that the Black Monday crash of August 24, 2015 is not the worst thing that could happen. Opportunity actually beckons to those who may seize it.