Want $1 Million in Retirement? Invest $100,000 in These 3 Stocks and Wait a Decade
Buying and holding stock in solid companies for the long run is a tried-and-tested way of multiplying one's wealth in the long run, as this strategy allows investors to gain from the power of compounding and also from secular growth trends in various industries.
The S&P 500, for instance, averaged annual returns of 13.9% from 2011 to 2020. However, certain stocks have outperformed the broader market's returns by huge margins over the past decade. The likes of Apple (NASDAQ: AAPL) and ASML Holding (NASDAQ: ASML) have crushed the S&P 500's returns comfortably in the past 10 years.
A $50,000 investment in Apple a decade ago is now worth almost $420,000, assuming the dividends paid out by the company were reinvested. Meanwhile, ASML has turned a $50,000 investment into more than $730,000 in a decade. So a $100,000 investment in these stocks would have made investors millionaires in 10 years.
Source Fool.com
