Home Sports 2 ASX stocks that turned $5,000 into $2.5 million (or more)

2 ASX stocks that turned $5,000 into $2.5 million (or more)


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Times like these can be tough for an investor. Seeing one ASX share portfolio burning value in a relatively short period of time is painful.

The tricky thing is that stocks can fall very quickly and take time to rise and connection.

Over the long term, the stock market has returned approximately 10% per year. But some stocks have managed to achieve extraordinary returns after starting out as microcaps on the ASX and then steadily achieving multiple targets to become multi-billion dollar companies.

I am not suggesting that investors go and try to find the smallest ASX stocks. But I think these two examples show that with a promising business it is worth weathering the recession and anxiety about various global events.

Altium Limited (ASX: ALU)

Altium is a leading manufacturer of software for the development of electronic printed circuit boards. While it may be one of the global market leaders now, just over a decade ago it was a much smaller business.

In fact, at the end of the 2011 fiscal year, Altium’s share price was just 9 cents. By the end of the 2021 calendar year, it reached $45.19. This is an increase of just over 50,100%.

If someone had invested $5,000 in Altium stock at the end of FY11, that investment would have been worth just over $2.51 million.

Since then, Altium shares have clearly fallen. Altium’s share price is down 23% on the ASX since 2022 volatility.

ASX share earnings expected to rise in FY23. Total revenue is expected to be between US$255 million and US$265 million in FY23, an increase of 15-20%.

Pilbara Minerals Ltd (ASX: please)

Pilbara Minerals is one of Australia’s largest companies lithium miners. Although it is a major player today, ten years ago it was not.

In October 2013, Pilbara Minerals’ share price was below 1 cent a share, at just 0.75 cents, according to ASX figures. Earlier in October, the price of Pilbara Minerals shares reached $5.42. This means that the Pilbara Minerals share price has increased by more than 72,160% between these two dates.

A $5,000 investment would turn into roughly $3.6 million.

However, the ASX lithium share is down 8% from that peak in October, so the gain doesn’t look that impressive.

The ASX stock is selling some of its lithium production at a high price at the moment as it benefits from strong demand. Its last cargo sale of 5,000 dry metric tonnes (dmt) was equivalent to approximately US$8,000 per DMT after adjusting for lithium content on a pro rata basis and taking into account transport costs.


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