How you could have turned $10,000 into $370,000 in five years on the ASX

Did you know that a $10,000 investment in A2 Milk Company Ltd (ASX:A2M), Appen Ltd (ASX:APX), and Clinuvel Pharmaceuticals Limited (ASX:CUV) five years ago would have created significant wealth?

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The share market has been a great place to invest your money over the last five years. During this time the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has delivered an average return of approximately 7.1% per annum.

This means that a $10,000 investment in the index five years ago would have grown to be worth just over $14,000 today.

Whilst this is a solid return in such a short space of time, it pales in comparison to some of the returns that have been made on the market.

The following seven shares have beaten the market by some distance over the period:

The A2 Milk Company Ltd (ASX: A2M) share price has been trading on the ASX for just under four years. If you'd picked up $10,000 worth of shares in April 2015 at 56 cents, that investment would have grown to be worth $247,000 today.

The Altium Limited (ASX: ALU) share price has provided a total return of approximately 74.1% per annum over the last five years. This would have turned a $10,000 investment into $160,000.

The Appen Ltd (ASX: APX) share price has been trading on the ASX since January 2015. If you picked up $10,000 worth of the shares of the developer of high-quality, human annotated datasets that month for 63 cents, that investment would now be worth $373,000.

The Bellamy's Australia Ltd (ASX: BAL) share price has been a big mover since hitting the ASX boards in August 2014. So much so, a $10,000 investment in the infant formula company's shares that month would now be worth a cool $66,000.

The Clinuvel Pharmaceuticals Limited (ASX: CUV) share price has provided investors with an average total return of 74.9% per annum over the last five years. This means that a $10,000 investment in the pharmaceutical company's shares five years ago would be worth almost $164,000 today.

The Nanosonics Ltd (ASX: NAN) share price has been a strong performer over the last five years, providing shareholders with an average total return of 37.1% annum. This would have turned a $10,000 investment in the infection control specialist's shares five years ago into $48,500 today.

The Pro Medicus Limited (ASX: PME) share price has provided investors with a staggering average annual return of 81.9% per annum over the last five years. Which means $10,000 invested in the healthcare technology company's shares would have grown to be worth $199,000.

a woman

Foolish Takeaway.

Whilst returns of this nature are reasonably rare, they do happen, and I feel confident in five years we'll be looking back at another group of shares that have done the same.

The key will be finding these shares before they take off.

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. recommends Pro Medicus Ltd. The Motley Fool Australia owns shares of and has recommended Nanosonics Limited and Pro Medicus Ltd. The Motley Fool Australia owns shares of A2 Milk, Altium, and Appen Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Growth Shares

Three happy office workers cheer as they read about good financial news on a laptop.
Growth Shares

Are these the best ASX growth shares to buy and hold for 10 years?

Brokers rate these growth shares as buys in April. Here's what you need to know.

Read more »

A young man talks tech on his phone while looking at a laptop with a financial graph superimposed across the image.
Growth Shares

3 ASX growth shares to buy with $10,000

Looking to add some growth shares to your portfolio? Here are three that brokers rate as buys.

Read more »

Two smiling work colleagues discuss an investment at their office.
Growth Shares

3 ASX 300 shares that could be much bigger in 5 years

Big returns could be on offer from these shares according to analysts.

Read more »

Two brokers analysing the share price with the woman pointing at the screen and man talking on a phone.
Growth Shares

3 ASX shares tipped to grow 75% or more in the next 12 month!

These businesses may be significantly undervalued.

Read more »

A woman looks excited as she holds Australian dollars in the air.
Growth Shares

2 undervalued ASX shares to buy that experts think could deliver strong returns

A fund manager thinks these ASX shares could deliver great returns.

Read more »

A young man punches the air in delight as he reacts to great news on his mobile phone.
Growth Shares

5 ASX growth shares to buy and hold for 5 years

These shares could be destined for bright futures.

Read more »

A woman with a magnifying glass adjusts her glasses as she holds the glass to her computer screen and peers closely at it.
Growth Shares

3 ASX shares below $5 with huge potential

Some of the most interesting ASX shares are not the biggest, but those still early in their growth journey.

Read more »

A graphic of a pink rocket taking off above an increasing chart.
Growth Shares

This could be the best ASX 300 stock buy today!

This seems like a great time to invest.

Read more »