3 stocks that in 20 years have turned $5,000 into more than $1 million

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

It isn't always obvious that a growth stock will take off and generate massive returns for your portfolio. However, that's one of the reasons why sometimes taking a chance on an up-and-coming stock can be a worthwhile move, even if you're not entirely confident that it'll be successful. Taking on some risk can result in monstrous gains and rewards later on.

Three stocks that have made long-term investors rich over the past two decades include Nvidia (NASDAQ: NVDA), Netflix (NASDAQ: NFLX), and Booking Holdings (NASDAQ: BKNG). Here's a look at just how much your investment would be worth if you bought $5,000 worth of shares in each of these companies 20 years ago.

1. Nvidia: $3 million

The least-surprising stock on this list is likely Nvidia. The chipmaker has made people rich over just the past five years, let alone 20. If you invested $5,000 into the tech stock back on Dec. 1, 2005, your investment would be worth a staggering $3 million right now.

Today, Nvidia has become the most valuable company in the world, with a market cap of $4.5 trillion. A couple of decades ago, it was primarily known for its graphics cards. Nowadays, its cutting-edge chips are used in the development of artificial intelligence (AI) models, which has led to game-changing results for the business.

Over the past four quarters, the company has generated $187 billion in revenue. Just a few years ago, the company's annual revenue was less than $30 billion. Nvidia's gains have come rapidly, and for investors who want exposure to artificial intelligence (AI), this can be one of the safer stocks to hang on to for the long haul.

2. Netflix: $1.2 million

Another stock that would have made you rich over the past 20 years is streaming giant Netflix. A $5,000 investment a couple of decades ago would now have ballooned to be worth $1.2 million. Its ascent has been more gradual than Nvidia's, and there have been challenges along the way. However, Netflix has established itself as a leader in video streaming.

The company's relentless pursuit of growth is evident with its recent acquisition attempt of Warner Bros. Discovery for $72 billion. Although the deal may not end up going through, as Paramount Skydance has announced a hostile bid, and there are concerns about whether this may hurt competition, it's yet another example of Netflix looking for ways to grow and add value for its customers.

The streaming giant has gone from posting losses to now enjoying strong profit margins of 24%. Netflix is a household name and yet another good growth stock to hold for the long haul.

3. Booking Holdings: $1.1 million

Rounding out this list of impressive stocks is Booking Holdings. A $5,000 investment in the business 20 years ago would now be worth around $1.1 million. The growth in the travel industry, particularly in online bookings, has enabled it to grow at an incredible pace.

Last year, it reported $23.7 billion in sales and $5.9 billion in profit, a significant improvement from the $11 billion in sales it posted just three years earlier, when its bottom line was around $1.2 billion. Analysts from Grand View Research project that the online travel booking market is still growing at a compounded annual growth rate of roughly 10% until 2030, as there's still more growth potential ahead for Booking Holdings.

Given the plentiful opportunities ahead, it may still not be too late to invest in Booking Holdings stock. It trades at a forward price-to-earnings multiple of 21, based on analyst expectations. That's slightly below the S&P 500 average of 22. For long-term growth investors, this can be a fantastic investment to simply buy and hold. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.