2 Magnificent Actions That Turned $20,000 Into $4.5 Million In 10 Years

The great thing about investing is that you don’t have to start with a fortune to build a portfolio worth a life-changing amount of money. It’s a challenge, of course, to find the big growth stocks upfront that can generate such transformational returns. But the one key ingredient that’s usually required is patience: significant gains don’t often come quickly. The longer you hold, the better your chances of making a great profit.

Two of the best growth stocks you could have owned in the last 10 years are Nvidia (NASDAQ: NVDA) and Celsius Holdings (NASDAQ: CELH). Here’s a look at how much you could have made from these two investments over that period, why they’ve done so well, and why they may continue to be great stocks to own for years to come.

Nvidia

It’s no surprise for Nvidia to be on this kind of list, given how important the technology company has been in artificial intelligence (AI) and with so many companies relying on its chips to power their technologies and state-of-the-art software. . However, even before the rise in its financial results and share price sparked by the AI ​​boom, Nvidia was a standout investment.

The sheer growth that Nvidia has generated in recent years is evident just by looking at its financials. In the last four reported quarters, it generated net income of more than $53 billion. That’s nearly double the $26.9 billion total income generated in the 2022 fiscal year, which ended on January 30, 2022 — before all the AI ​​hype began. In that fiscal year, its profit was $9.8 billion.

Nvidia’s impressive growth has taken the company’s market cap to around $2.9 trillion. But because its earnings have grown rapidly, it trades at a forward price-to-earnings (P/E) multiple of 31, which doesn’t seem all that high for a stock that has risen 26,000% over the past 10 years. A $10,000 investment in the company a decade ago would be worth $2.6 million today.

Given its still fairly modest valuation and growth potential in AI, it may not necessarily be too late to invest in Nvidia. While the stock isn’t likely to generate the same kind of returns over the next decade as it did over the past decade, it can still be a great buy.

Celsius Holdings

Energy drink maker Celsius Holdings has also been a growth machine for investors over the past decade. Although the stock has struggled this year as the company’s sales growth rate has slowed, this business has seen significant growth over the years.

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Over the past four quarters, the company generated sales of nearly $1.5 billion — nearly five times the $314.3 million in revenue reported in 2021. The company was struggling with profitability at the time and suffered losses even in 2022. , but it’s firmly in the black these days, with net earnings reaching $241.3 million over the past four reported quarters.

If you invested $10,000 in this stock a decade ago and held on, your stake would be worth more than $1.7 million today. Combine that with another $10,000 investment in Nvidia made at the same time, and the value of those two holdings would approach $4.5 million. And if it weren’t for the recent selloff in Celsius shares, your return would have been even higher than that.

There’s still an optimistic case for Celsius these days. Trading at a forward P/E of 26, it is not blatantly overvalued. And with a more prominent name in the energy drink market now, there is still room for it to go higher in the future, especially as it enters more international markets.

Should you invest $1,000 in Nvidia right now?

Before buying Nvidia stock, consider the following:

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David Jagielski has no position in any of the listed stocks. The Motley Fool has positions in and recommends Celsius and Nvidia. The Motley Fool has a disclosure policy.

2 Magnificent Actions That Turned $20,000 Into $4.5 Million In 10 Years was originally published by The Motley Fool