Hindsight can be a beautiful thing for the smart investor. The smart investor is the one who gets the analysis right and sits back and watches their profits run. They don’t panic, they just trust their judgement and make sensible purchases.
Berkshire Hathaway Chairman Warren Buffett, arguably the world’s best investor, says you should treat your investments as though you could only make 20 of them in your entire life. I bet even he would have bought each and every one of these five companies.
Ten years ago, if you invested $10,000 into the number one stock below, you’d be sitting on a gain of around $4 million. Just from $10,000! Plus you would have received countless dividends along the way.
Here are five of the best investments you could have made on the ASX this past decade.
5. Syrah Resources (ASX: SYR)
In 2009, if you’d bought Syrah Resources for as little as 3.4 cents you’d today be sitting on gains of 7,532% — $10,000 invested on those gains would equate to approximately $763,000 today.
4. Webjet (ASX: WEB)
One dot-com stock that lived to tell the tale is online hotel and flight booking company, Webjet. In 2004 the stock traded for just under 3 cents, and, fast-forwarded to today, sell for around $3.11. That’s a gain of 10,200% and it pays dividends! $10,000 invested then is now worth more than a staggering $1 million.
3. Sandfire Resources (ASX: SFR)
Narrowly beating Webjet, with a 10,500% gain, is Sandfire Resources – a mid-cap mining stock with operations in Western Australia. After stellar runs that produced gains of up to 13,000% in one year, Sandfire is still way up from the $0.055 it was trading for in 2009.
2. Fortescue Metals Group (ASX: FMG)
In the iron ore corner, representing the blue chip community, is Andrew the ‘Twiggy’ Forrest’s Fortescue Metals Group. Fortescue is one of the true success stories of the decade. In 10 years, shareholders have made gains up to 14,350% plus dividends. That turns $10,000 into around $1.4 million.
1. Tox Free Solutions (ASX: TOX)
In 2004 this company traded for less than 1 cent, or $0.007 to be precise, and will open today at $3.35 per share. That gain turns $10,000 into approximately $4 million! That’s from a company barely anyone has heard of. Tox Free is a waste management company that only 13 years ago had 20 employees, but now boasts over 800!
Here's to the next big winners
Despite the tremendous capital gains, Tox Free pays a dividend of only 1.6%! For a company to grow that quick and pay a dividend is very rare. If you want an even better dividend, you can have our favourite income idea today, completely free! You too could make some huge gains. Simply click here for your FREE copy of “The Motley Fool’s Top Dividend Stock for 2013-2014.”
Motley Fool contributor Owen Raskiewicz does not have a financial interest in any of the mentioned companies.