As we rapidly approach the end of the year I thought I would take a look at some of the best performers this year on the Australian share market.
Whilst there have been a number of great performances, the three shares listed below certainly caught my eye. So much so I wish I had a time machine to go back and invest in them!
Afterpay Holdings Ltd (ASX: AFY)
This fast-growing payment company's share price has climbed a staggering 155% since its IPO in May. As its name implies, Afterpay provides retailers with the ability to offer interest-free, buy now, pay later options online and in-store. It bears the default risk for a small percentage of the sale in fees. Retailers have unsurprisingly been queuing up for its services this year. So much so that its platform now boasts over 1,500 active retailers. I expect more of the same next year from this exciting company.
Fortescue Metals Group Limited (ASX: FMG)
The incredible rise of the iron ore price is largely the reason for Fortescue's share price rising 218% this year. Pleasingly the iron ore miner has taken advantage of the high prices to repay a significant amount of its debt. With its cash costs now at record lows, Fortescue has transformed itself into one of the most efficient mining companies in the world. I wouldn't recommend an investment in Fortescue at this point and instead would suggest investors wait for iron ore prices to normalise.
Galaxy Resources Limited (ASX: GXY)
This mining company's shares are up a remarkable 330% this year as demand for lithium goes through the roof. Another catalyst for the rise was its merger with fellow lithium miner General Mining Corporation in May. This merger created a diversified lithium company with a large wholly-owned portfolio of lithium assets in multiple locations across the world. Whilst I'm a big fan of Galaxy, I believe there is an enormous amount of earnings growth baked into its share price. This makes it an extremely high-risk investment in my opinion.
