In every business cycle there are some stocks at soar in value far, far higher than the average rise seen across the market. Being a successful investor means you can see which sectors are set to outperform the market average over the next 10 year cycle and get in at the right time. Remember, as every investor knows – it’s not just what you buy, but at what price! A good company at a great price is always better than a great company at a good price!
In the 1960s it was airline stocks that massively outperformed the market average – at the time there was rapid and unprecedented expansion of air travel around the world, and the big US and European airlines rocketed in value over the decade. Then IBM became the dream growth stock, and held this title until it was finally surpassed by the next generation of IT innovators.
In the long boom cycle from the 1990s to 2008 it was the big banks that saw very substantial gains, and most recently it is the big tech stocks that have become the engines of growth. The FAANG stocks in the US have consistently beaten the S&P 500, but also now the next generation of tech giants from China including Tencent and Alibaba are also joining that elite club of tech growth superstars.
But what sort of companies or sectors should investors be looking at for growth over the next 10 years? Here are some for our top picks for potential growth stocks that could turn $100,000 into $1 million in a decade.
5 Growth Stocks That Can Turn $100,000 Into $1 Million in 10 Years
Babylon Health
Already a massive UK SME success story on, Babylon Health is a cutting-edge health-tech start-up that has harnessed the power of AI to provide a revolutionary diagnostic service. Users simply enter their symptoms and the patented software generates an accurate diagnosis and informs them of the next steps to take. The system is being continually enriched by data uploaded to the system by medical professionals, and the this enables the system to be safe and accurate. Users can also video-call registered doctors through the app to get a human interpretation of their symptoms.
With the pandemic reinforcing to governments around the world the importance of public health infrastructure, it seems likely that Babylon will continue it’s impressive run of growth for many years to come. Although currently private, Babylon is just about to the list in the US via a merger with Alkuri Global Acquisition in one of the health-tech sectors most exciting new listings for years. The combined company will retain the name Babylon and it will trade on the Nasdaq as ‘BBLN’.
Howard Hughes Homes
If you are looking to build your wealth over a 10 year timeframe, then real estate simply has to be a significant part of your asset allocation. The combination of steady revenue streams from rental income, as well as the possibility of rising land values, mean real estate will remain one of the best investments you can make at almost any time.
Howard Hughes could be worth a closer look because it is still trading at a slight discount from it’s pre-Covid highs. Howard Hughes specialises in so-called ‘master-planned communities’ – developments where one company designs and builds a large-scale residential development that incorporates some retail, commercial and social infrastructure. There can be little doubt that the need for more housing due to growing populations and rising GDP per capita mean companies who can deliver projects at this scale will be in line for lucrative public and private contracts. Howard Hughes have several massive developments underway in Houston, Las Vegas and New York, and investors willing to stay in for the long run and ride out the short-term volatility should expect a health growth in value here.
Advanced Micro Devices
Continuing the theme of stocks that are currently trading below their previous peaks as good places to hunt for great long-term growth potential, Advanced Micro Devices are right now trading about 10% down from where they were 12 months ago. However, the stock is set to start moving up soon as the company has just posted a 92% increase in annual revenue. Since a management change in 2018, Advanced Micro Devices has reinvigorated the company’s product portfolio. They focus now primarily on microprocessors for PCs and servers, graphics processors, video game consoles, and smart devices.
Basically, these products are set to see global demand continue to rise for the foreseeable future, and these processors are high-margin products meaning healthy long-term profitability for Advanced Micro Devices. Famed billionaire growth investor Ken Fisher has a disclosed stake in Advanced Micro Devices, and this mid-sized enterprise looks set to have the potential to expand substantially overt the coming decade.
Before you yawn and stop reading – hear me out! Facebook has been a tremendous growth stock for the last 10 years, but analysts from numerous firms are starting to see even more growth potential here for the future.
Tiger Management, still run by legendary hedge fund manager Julian Robertson, recently went public with statements that he still sees even more growth potential in the big US tech stocks, Facebook in particular. This might be hard to see, with the near exponential growth of previous years seeming to suggest they have already reached their top valuations, but Facebooks ad revenue is still screaming up and shows no signs of slowing yet.
Essentially, Facebook has succeeded where few other social media platforms have of continually reinvesting itself for new audiences in new countries. As such, the global market that Facebook can access means it may well be able to carry on its astonishing growth trajectory for many more years to come.
Hugo Boss
Finally, a name everyone will know of but few might have considered investing in. Hugo Boss has been a big name in the luxury world for decades now, but the increasing rise of a new global middle-class hungry for the ‘good life’ has meant European and US luxury brands have seen sales revenue in emerging markets soar. French luxury group LVMH is the most well-known investing success story here, but looks too expensive right now to be a pick for growing investment value over the next 10 years. By contrast, Hugo Boss is still slightly down from its pre-Covid peak suggesting good value. With revenues forecast to grow by 47% over the next few years, more and more analysts are moving Hugo Boss from a ‘hold’ to a ‘buy’ recommendation.
Turning $100,000 Into $1 Million in 10 Years
The stocks about have all been picked as they have the growth potential to turn a starting investment of $100,000 Into $1 million over a decade. They are all in sectors which are ‘future-proof’ and can expect to see strong and rising demand in the years to come. They are all currently successful, and so have a track record of growth, but each on has a reason to think it has further yet to go it its growth story.
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