4 ASX growth stocks for under $5

For less than a cup of coffee, these companies are offering much more than burnt milk.

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

How does $5.00 turn into $500,000? Below I'll show you…

But first, did you know $1.00 invested in the Australian stockmarket back in January 1900 would today be worth over $395,000?

Or one share of The Coca-Cola Company in 1919 would today be worth over $5 million! Right now, there's places where $5 wouldn't buy a bottle of Coke.

The point I'm trying to make is that a small sum of money today, could significantly change your life tomorrow.

Here's a personal example.

Every weekday I drink at least one more cup of coffee than I have to.

With a large coffee costing around $5, I'll be paying around $100 per month for the privilege of having a couple of extra visits to the dentist throughout my life.

You hear that sound? It's everyone calculating what my habit will cost me.

Now imagine this. Instead of simply saving the loose change in a bank account or money tin, let's say I reinvested it at a yearly rate equivalent to the Australian stockmarket's annual average return of 12%.

Daily Saving Year 1 Year 5 Year 15 Year 30
$5.00 $1,206 $7,632 $44,763 $289,749
$7.50 $1,800 $11,435 $67,103 $434,399
$10 $2,400 $15,247 $89,471 $579,198

Calculated using the Moneysmart compound interest calculator at 12% interest pa.

As you can see from the table above, a small amount can make a big difference in the long run.

Burnt milk never tasted so good…

However, let's be honest, I'm never going to give up drinking coffee altogether. But, I could save money by making my own or drinking fewer. It's important to remember though, that the rate at which we succeed, is proportionate only to what we're willing to sacrifice.

By now you're probably saying, "That sounds good but I know nothing about share markets."

To get you started I've carefully compiled a list of four growth stocks under $5.00 per share which I've bought, or intend to buy with my savings.

1. Shine Corporate Ltd (ASX: SHJ) is a leading Australian law firm with an expanding presence outside its native state of Queensland. Shares began trading this morning at $2.29.

2. Independence Group NL (ASX: IGO) is a gold, nickel, zinc and copper miner with rapidly growing production. Its shares opened this morning at $4.80.

3. Yellow Brick Road Holdings Ltd (ASX: YBR) is a growing junior wealth management and diversified finance company. It is currently priced at $0.70 per share.

4. FSA Group Ltd (ASX: FSA) is $167 million company which helps individuals and businesses with debt and cash flow management. Its shares trade at just $1.34.

Our best dividend stock for under $5.00 – Free!

Every wondered why the rich get richer? Now you know why. They invest for the future and let their money do the heavy lifting for them. I own three of these stocks and they have rewarded me for my sacrifice.

Motley Fool Contributor Owen Raszkiewicz owns shares in Yellow Brick Road, Independence Group and Shine Corporate. 

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »