It is easy to look in the rear-view mirror and see which investment decisions we should have made! The art of investing is to spot the next wave of big movers before they set off. However, analysing the recent past can be a great way of working out which assets are next to explode in value.
Obviously, major indices like the S&P 500 have generated very healthy returns (around 44%) over this same time period, but what are the assets that have truly soared in value. There are some investments that have made investing in the S&P 500 look frankly pedestrian. Some investors will always be willing to accept a higher level of risk in return for the greater rewards which can be sought in more exotic investments.
In this article we take you on a guided tour through the biggest movers over the past 24 months – what were they, why did they move, and when? Here you will see a selection of renewable stocks, cryptocurrencies, small-cap tech start-ups and others who have enjoyed spectacular growth.
7 Investments That Turned $50,000 Into $1 Million (or More) in 2 Years
MicroVision is an autonomous vehicle producer which has been in the public markets for 25 years already. However, it’s stock really started moving in the past year. Having seen strong demand and impressive revenue growth for some time now, a $50,000 investment 12 months ago would today be worth approximately $3.87 million.
MicroVision is therefore a great example of exactly what investors are looking for in small-cap tech stocks – massive growth potential from an initially low valuation base. A lot of positive coverage on Reddit and other online forums helped propel this dramatic increase. But MicroVision’s success appears to have been driven by more than just online speculation – their technology has been successfully trialled, and the stock could well have further to run yet.
Although less well-known than Bitcoin and Ethereum, Cardano has been the true winner in the crypto space over the past two years. In fact, this cryptocurrency is currently up just over 2,199% from its valuation two years ago! This staggering rise can be difficult to comprehend, but it makes a bit more sense when put into context. Two years ago Cardano was a new cryptocurrency at a very low value, so it’s exponential rise was possible because it was starting from such a low base.
Needless-to-say, this rate of growth is far in excess of what Bitcoin from a higher base achieved over the same time period. Can Cardano maintain this rate of growth? It’s hard to say, but with more and more uptake of Cardano’s services it seems likely it can hold onto the gains already made. The key takeaway for investors hungry for future growth is that finding the next cryptocurrency project just ready to boom could be a good strategy for the years ahead.
Read More: Is Cardano a Good Investment?
Second up, another crypto growth engine – Dogecoin. The numbers here are truly staggering: a $50,000 investment in Dogecoin 2 years ago would be worth an astonish $7.91 million today. This equals a 15,720% return, which is far and away the best possible return out there.
A big part of Dogecoin’s success has been down to the involvement of Elon Musk. His Tweets brought attention to Dogecoin early on, going to far as to joke that he was the ‘Doge-father’. However, as said in the introduction, this is very much a hindsight exercise!
Dogecoin arguably has less real business value than other cryptocurrencies and blockchain projects, and relies a lot on the hype provided by its celebrity backers to keep rising. This would be a very risky investment going forwards, and may well have had its best days already. Criticism of the functionality of the Dogecoin network has been gathering pace recently, and so new investors should definitely approach with caution!
Check Out: Should You Buy Dogecoin?
Next on our list, Sunworks is a world-leader in solar panel technology. The enormous growth potential of the renewables sector is beyond doubt by now, and more and more investors have been looking to switch out of fossil fuels and into renewables.
This has propelled a hypothetical $50,000 investment in Sunworks 2 years ago into $1.34 million today. Whilst it is obvious to many market observers that the renewables sector is going to boom, picking the individual stocks which will reflect this increase is much harder.
Needless-to-say, not every innovative solar panel producer will enjoy this level of success. However, Sunworks established track-record and well-respected management team meant that when the new Joe Biden administration signalled the US was switching to renewables faster than expected, Sunworks soared ahead of the rest of the solar pack. As such, having an eye for new technologies, and which firms will be able to successfully harness them, was key to identifying this growth opportunity in real time.
5. Blink Charging
It is a similar story here to the stock above. Blink Charging are at the forefront of developing the charging products and infrastructure needed to allow the who car network to start transiting to an electric future.
The growth potential here is through the roof, and over the last year more and more investors feel that the turning point has been reached, and funds have flooded into Blink Charging and other EV stocks.
The expectation is that as more road users switch to electric, petrol stations and other road-side services will need to install electric charging points. Hence, large and long-term contracts for companies like Blink Charging. $50,000 out into the stock 2 years ago would now be worth about $1.1 million.
No list of this type would be complete without a star performing biotech stock. Ocugen are a US biotech firm who specialise I vaccine development and production.
They do have a Covid vaccine underway, and many investors are betting that Ocugen will be able to grab a slice of that global market. As most people now accept, the pandemic will be not end suddenly, but rather Covid will become one of many viruses we need to live with and control through vaccines.
For vaccine producers, this does suggest long term revenues are there to be gained. Most importantly, several erl stage studies have shown that the Ocugen vaccine, called Covaxin, is actually the most effective vaccine yet when pitted against the variants that have arisen as the virus mutated.
As such, Ocugen’s share price has more than quadrupled already, and would have turned $50,000 into $1.82 million. However, unlike some of the stocks profiled here, Ocugen is technically within ‘penny stock’ territory. This means rapid moves in either direction are possible as it is changing from a very low base.
7. Alpha FX
Finally, UK-based financial services provider Alpha FX rounds of this list of the best performing stocks of the last 2 years. It has actually risen from more than 7 times of it’s original listing value 4 years ago. Increased online financial activity during the lockdowns saw revenues rise from £35.4 million to £46.2 million, while pre-tax profit improved from £13.5 million to £17.1 million.
Successful international expansion into both Canada and the Netherland’s also powered this fintech stock to the higher valuation we see today.
7 Investments That Turned $50,000 Into $1 Million in tWO Years
These stocks and cryptos would all have turned initial investments of $50,000 into more than $1 million is low years or less. They don’t have much in common, but the factors that explained their growth were all understandable with hindsight. Hopefully this survey of the recent past will help you to do the infinitely more complicated task of looking ahead and working out where the next generation of growth success stories are to be found.
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