The stock market is a wonderful place to grow your wealth, over time. Sure, even after conducting days of meticulous research, things can still go wrong and you can lose money.
However as you'll see below, over time, the winners generally out-weigh the losers.
Famed fund manager and investing legend Peter Lynch believed a "good" investor need only be "right six times out of ten".
He believed investors could beat Wall Street analysts by keeping a lookout for exceptional businesses in our day-to-day lives. After all, that's exactly what long-term investors look for in a stock.
Five exceptional growth stocks…
I've had interactions with four of the five companies below and I'm kicking myself for not taking Lynch's advice earlier than I did because each have smashed the returns of the S&P/ASX 200 (INDEXASX: XJO) over the past five years, but could still go higher.
- Carsales.Com Limited (ASX: CRZ) is a name synonymous with online auto sales. In the past five years shares are up a healthy 181%, but with exposure to the growing markets of Asia and South America, the best could be yet to come.
- NIB Holdings Limited (ASX: NHF) is a health insurance provider with a great product offering. Its shares have risen over 212% in the past five years. The company also recently rewarded shareholders with a special dividend.
- SEEK Limited (ASX: SEK) is the Australian online job listing portal going from strength to strength. It recently upped its full-year profit by 27%. Despite trading on a high earnings multiple, the long-term upside for the company appears excellent.
- Slater and Gordon Limited (ASX: SGH) is Australia's leading personal injury law firm. Thanks to both acquisitive and organic growth, its management have realised the future of the company lies overseas, in larger markets such as the UK. So far its decision to expand offshore has paid off, big time.
- G8 Education Ltd (ASX: GEM) is a childcare owner and operator with over 360 locations across Australia and Singapore. With shares up nearly 90% in the past 12 months, it has climbed a massive 6,575% in the past five years, yet analysts are expecting very strong earnings per share growth in coming years.
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All of these companies have been exceptional investments for those willing to hold them for the long haul. However with each company boasting a market capitalisation over $1 billion, they're no longer small-caps flying under the radar!
