Australia's WAAAX shares are the equivalent to the United States FAANG stocks – high-growth technology shares trading on high multiples that have seen some phenomenal increases in share prices.
But what if you were one of the early adopters and invested before the crowds? Where would you be now if you had invested in WAAAX 5 years ago?
WiseTech Global Ltd (ASX: WTC)
Five years ago WiseTech was not even listed on the ASX – the logistics software provider listed in April 2016 at $3.35 a share. Shares are now trading at $23.33. If you had bought $10,000 worth of shares at the IPO those shares would be worth a tidy $69,641 today.
Afterpay Ltd (ASX: APT)
Afterpay is an even more recent entrant to the ASX, listing in May 2016 at $1.30. The buy now, pay later provider has since rocketed to trade as high as above $36, and is currently trading at $29.87 a share. If you had invested $10,000 in Afterpay's IPO, those shares would be worth an incredible $229,769 today.
Appen Ltd (ASX: APX)
In January 2015, artificial intelligence and machine learning company Appen was trading at just 56 cents. Now the data supplier is trading at $22.03. A $10,000 investment in Appen 5 years ago would be worth more than $393,392 today.
Altium Limited (ASX: ALU)
Altium was trading as low as $2.76 back in January 2015. Now the printed circuit board software designer is trading at $34.04. If you had invested $10,000 in Altium in January 2015 your shares would be worth $123,333 today.
Xero Limited (ASX: XRO)
Xero shares were trading for $15.80 a piece 5 years ago. Shares in the accounting software provider are now changing hands for $79.55 each. A $10,000 investment in Xero shares made in January 2015 would be worth $50,348 today.
Overall outcome
If you had invested $10,000 in each of the WAAAX shares 5 years ago (or on their IPO, where that occurred later) you would have amassed shares worth more than $850,000 today. Appen gave the highest return, delivering a capital gain of 3,833% over the 5-year period.
Foolish takeaway
WAAAX shares have delivered some impressive returns over the past few years, however trade on high price earnings multiples. The question is whether these returns can be repeated.
