Despite the S&P/ASX200 Index (ASX: XJO) (^AXJO) returning over 55% plus dividends in the past 10 years, there are a few companies which have greatly exceeded the performance of the benchmark.
Since the beginning of 2004, Fortescue Metals Group Limited (ASX: FMG) has averaged an annual shareholder return of 55%, significantly outperforming the index every single year. That's a total gain of nearly 7,500% not including dividends but, even at current prices, bullish iron ore investors are finding value in the miner and believe its full potential is yet to be realised.
Australia's resource rich deserts have made profits for many investors, but Australians who also tapped into the reserves of foreign countries have also been rewarded with remarkable gains. None more so than those who bought into Aurora Oil & Gas Limited (ASX: AUT) a decade ago. To date, the stock has returned some 15,500% not including dividends, but with production set to grow by up to 47% in 2014, it appears much more is yet to come.
It obviously pays to get in early with these companies but those who acquired REA Group Limited (ASX: REA) shares anytime in the past decade would be very happy. As the owner of realestate.com.au, it has grown profits and dividends considerably and boasts an average annual shareholder return of 51%.
When it comes to investing, taking a risk sometimes doesn't pay dividends for many years. Financial services company FSA Group Ltd (ASX: FSA) has proven why it's important to exercise patience when investing. Over the past 10 years it has an average annual shareholder return of 40.5% and announced its maiden dividend in 2011, since then the share price has rocketed upwards.
Lastly, CTI Logistics Limited (ASX: CLX) is one company which has risen from the dust, literally. In recent years this West Australian logistics company has expanded its operations in the resources sector and has been rewarded with rapid share price gains. Its average annual return is 44.3% with the past year being no exception, rising 61.5% plus dividends.
Foolish takeaway
10 years ago most of these companies were largely unheard of and many would have thought these speculative investments weren't worth the risk. However if you can take your time, conduct rigorous research and find one stock which is big winner you'll come out on top. Patience is the key.
