Pardon me for feeling a little bit smug this afternoon. I just can’t seem to wipe this smile off my face. After all, the world hasn’t ended on account of the US government shutdown, now has it? On the contrary! Wall Street and the ASX remain not only intact, but above the levels they were at beforethe shutdown… Only gold – the favourite investment of the sky-is-falling crowd – has dropped. And now, with this latest ‘crisis’ out of the way, Foolish investors like…
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Pardon me for feeling a little bit smug this afternoon. I just can’t seem to wipe this smile off my face.
After all, the world hasn’t ended on account of the US government shutdown, now has it?
On the contrary! Wall Street and the ASX remain not only intact, but above the levels they were at before the shutdown…
Only gold – the favourite investment of the sky-is-falling crowd – has dropped.
And now, with this latest ‘crisis’ out of the way, Foolish investors like you and I can get back to OUR favourite investments… Shares.
To be even more specific: Profitable shares!
Below, we’ll take a look at 10 ASX stocks up 1,000% or more in the last 5 years…
Hint: Whitegoods distributor Breville Group (ASX: BRG), posting a mere 993% return over this period, doesn’t make the list…
We’ll also delve into what is, arguably, the most exciting sector in Australia. (Not mining! Not banking either.) We may find our next big winners there…
10 of the best performing stocks in Australia
A drumroll, please…
The following are 10 ASX stocks that have packed on 1,000% – or more, including dividends – in the last five years. (That is, strictly between 2 October 2008 and 1 October 2013.)
1. Ainsworth Game Technology (ASX: AGI)… up a stunning 4,910%
2. TPG Telecom (ASX: TPM)… up 3,322%
3. Credit Corp (ASX: CCP)… up 1,599%
4. FlexiGroup (ASX: FXL)… up 1,277%
5. Forge Group (ASX: FGE)… 1,150%
6. Aurora Oil & Gas (ASX: AUT)… up 1,059%
7. Magellan Financial Group (ASX: MFG)… up 2,037%
8. Northern Star Resources (ASX: NST)… up 1,279%
9. Regis Resources (ASX: RRL)… up 4,854%
10. Sandfire Resources (ASX: SFR)… up 3,350%
Some of these numbers just boggle the mind. Yet they’re very real.
While all these companies have been included in the All Ords index for the entirety of the last five years, they have – individually – vastly outperformed the overall index.
In fact, over this period, the All Ords index posted an overall return, again including dividends, of just 36%.
If this isn’t an argument for stock picking and for holding individual shares, I don’t know what is.
Where we’ll find the next big winners…
Still, looking at past performance can only tell us so much. And, let me be clear, I don’t mention these particular stocks to you as a “buy” today – I use each strictly as an example of the power and potential of owning individual shares.
No doubt in many cases, these companies’ best days or at least, most explosive growth, will be behind them.
But consider some of the more familiar names on this list, such as TPG Telecom. That’s no case of a tiny, profitless miner striking pay dirt and shooting to the moon.
It’s much more a case of predictable success! A high quality business with what were then incredible tailwinds at its back…
It’s true the growth of the telecommunications sector has been simply massive in recent years. And there may be more on the way… But of course you’ll only want to own the best and most promising telco shares.
If you are looking for more fully franked dividend paying stocks, check out “The Motley Fool’s Top Dividend Stock for 2013-2014.” In this special free report, find out the name, ASX symbol and full investment case for this top dividend paying stock. Click here now for instant free access.
Bruce Jackson does not own shares in any of the companies mentioned in this article