It's been a rough year for Aussie investors, with the S&P/ASX 200 Index (ASX: XJO) having dived more than 12% since the start of 2022. Once bullish shareholders would be forgiven for feeling a little down in the dumps — along with their ASX 200 shares.
But if you need a reminder of the power of investing, you've come to the right place.
These three ASX 200 shares have turned a $5,000 investment into a considerable nest egg over the course of their listed life. Let's take a look at the tried-and-true ASX 200 millionaire makers.
These ASX 200 shares have turned a $5,000 investment into $1m
ASX-listed company | Foundational year | Total return since | Recent value of $5,000 invested |
Fortescue Metals Group Limited (ASX: FMG) | 2003 | 85,450% | $4,277,500 |
CSL Limited (ASX: CSL) | 1994 | 36,799% | $1,844,934 |
REA Group Limited (ASX: REA) | 1999 | 22,822% | $1,146,100 |
And none of those returns has considered dividends paid out by the ASX 200 shares during their time on the market.
That's right, a $5,000 investment in iron ore giant Fortescue in the early 2000s would have been worth a whopping $4.28 million at last close.
Aussie billionaire and Fortescue boss Andrew 'Twiggy' Forrest took control of the ASX-listed Allied Mining and Processing in 2003, quickly renaming it Fortescue.
Back then, the stock was trading at just – wait for it – 2 cents a share, as my Fool colleague Sebastian reports. The Fortescue share price last closed at $17.11.
Similarly, CSL floated on the ASX after its initial public offering (IPO) saw shares in the company sell for 76 cents apiece, adjusted for subsequent stock splits, as The Motley Fool Australia's James reports.
As of Friday's close, one share in CSL was priced at $280.43.
Meanwhile, REA floated on the ASX under the name Realestate.com.au way back in the midst of the dot-com bubble.
It hit the Aussie bourse in December 1999 after raising $6.5 million in its IPO. Some sources suggest the company's stock was offered for 50 cents apiece under its prospectus.
That would have been a good buy for a time. The REA share price lifted to around $1.10 before the century ended. However, it plummeted in the subsequent tech crash, dipping under 10 cents in 2001.
But those who stuck with what has since become an ASX 200 share have been rewarded in spades. The REA share price last closed at $114.61.
Key takeaway
While it's impossible to predict where the market will go from any given point, history suggests it will ultimately go up.
The ASX 200, for instance, has posted an average annual gain of 9% over the last 30 years.
That stands true despite major downturns.
Over the last 30 years, we've seen the dot-com bust, the global financial crisis, and the COVID-19 pandemic, as well as plenty of smaller or geographically-limited dives.
And still, the ASX 200 has continued to meander upwards, with some shares posting gains of more than 85,000% – looking at you Fortescue.
Hopefully, that quells the minds of anxious investors and inspires others to make good use of recent volatility.