Got $3,000? These Stocks Could Double Your Money by 2030
Buying and holding solid companies for the long run is a tried and tested way of making money in the stock market because it allows investors to benefit from the power of compounding and enables them to take advantage of secular growth opportunities in various industries. This is evident from the impressive gains that the S&P 500 logged in the past decade.
For instance, a $1 investment in the S&P 500 index in 2012 grew to $3.06 in 2021 after adjusting for inflation. So even though there are periods of volatility and years when the market remains in the red, history suggests that the stock market averages solid returns over the long run. This is evident from the returns generated by Apple (NASDAQ: AAPL) and Taiwan Semiconductor Manufacturing (NYSE: TSM) (TSMC) over the years.
A $3,000 investment in Apple stock seven years ago is now worth just over $19,000, assuming the dividends were reinvested. That translates into a healthy annual return of 30%. A similar investment in TSMC shares is now worth more than $12,400. It won't be surprising to see these stocks replicate such impressive returns in the future and at least double your money (if not more) by 2030. Let's look at the reasons why.
Source Fool.com
