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3 Stocks That Turned $1,000 into $10,000 (or More)

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Have you ever made an investment that turned into a 10-bagger? That is to say, have you ever bought a stock that has become 10 times bigger than your initial purchase price? They are not as unusual as you might think. The key is simply identifying companies with explosive long-term growth potential, buying that stock, and then leaving it alone for enough time to fully bloom.

With that as background, see if you can spot the common elements between three different stocks, each of which eventually delivered a 900% return, and then some.

1. Tractor Supply

tractor supply (TSCO 0.51%) has been in business since 1938, but it did not become a publicly traded entity until 1994. But even after the IPO, the bulk of the stock’s gains didn’t begin to materialize until the end of 2009 and the Great. recession. Since that year’s low (which marked the end of the bear market prompted by the subprime mortgage meltdown), Tractor Supply shares have risen from a split-adjusted price of less than $8 to their current price of about $198. The shares were trading above $240 in March. That’s a 2,375% return over about 13 years (if you’re keeping score).

The growth driver, of course, was a seismic shift toward self-sufficiency among consumers, and simply doing more for themselves than their hands. Due to a booming economy in the 1990s and early 2000s, consumers became more accustomed to shopping instead of growing. When all the excesses of the era—including heavily processed foods and chemically driven developments—fell out of favor, consumers fell in love with the idea of ​​small-time home gardening. Last year, this rush gave the retailer $12.7 billion in business, up from just $4.2 billion just 10 years ago.

2. Nvidia

Established back in 1993, NVIDIA (NVDA 0.54%) was joining the personal computer craze at the right time. It also experienced tremendous growth right out of the gate, yet when it was made public in 1999, it still had a lot of growth ahead. This growth will indeed be eternal.

Nvidia manufactures graphics processors essential to video gamers, computer-based designers, and digital animators. As computers keep improving and software gets more complex, the need for a more powerful graphics card is never really that far off. That’s why Nvidia’s stock is up more than 4,820% over the past 10 years, and more than 37,070% since its IPO. What makes this feat even more impressive is the fact that most of the growth has taken shape since 2015, and the number is still huge, despite the stock’s price halving compared to at the end of November.

The future still looks bright, though not necessarily for the same reason Nvidia’s past does. While it still remains the go-to tech for video gamers, the same graphics-processing technology that makes powerful video cards is also perfectly suited for handling artificial intelligence applications. Nvidia is certainly taking advantage of this nuance by designing and building AI systems from the ground up.

And this is a big deal. Presidency Research estimates that the global artificial intelligence market will grow at an annual pace of 38% by 2030, when it should become a $1.6 trillion market that Nvidia is well positioned to address.

3. Monster Drinks

Lastly, add monster drink (MNST 0.05%) is on your list of stocks that have made astonishingly large gains. An investment of $1,000 made in this company in early 2011 would now be worth about $10,000, whereas stepping into it 20 years ago would give you a whopping return of 111,678%.

Certainly very few people are sitting on that level of advantage. Back in July 2002, we were not only smack-dab in the middle of a recession, but shares of this company (when it was still a soda company called Hansen) effectively went nowhere after nearly two decades. There simply weren’t many people interested in owning a beverage maker that was struggling to really break into the market at the time.

Then everything changed. Hansen launched his first energy drink in 2002 using the Monster moniker, and although it took a few years for them to catch on, once he did he didn’t look back. By 2012 the energy drink category had grown so large for the company that it changed its name to Monster Beverages, and now commands a turnover of $6 billion per year.

connecting the dots

Did you recognize the common thread between these three names? They are not exactly easy to detect, but in all three cases, this huge increase reflects the arrival of a new cultural norm. Not only do consumers want to stay away from foods exposed to pesticides and other chemicals, but they also enjoy home gardening as a hobby and pastime. Many consumers still appreciate the energy boost sugar provides, but they want the caffeine jolt that only energy drinks can offer. For Nvidia, video gaming is an ever-growing market, as expectations for the best possible graphics are never low. Artificial intelligence should follow the same path.

It’s not immediately clear which companies are touting the new cultural norms right now; It is also not clear what the new norms are today. If you look closely and think carefully, you can identify many 10-bagger possibilities. Just be sure to leave them alone long enough to do their job, once you get down to stock and buy stock.

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