- Investing in stocks for a long term can protect you from capital erosion and inflation.
- Stock investments provide you with wealth creating opportunity.
- Some stocks have delivered nearly 2,000 per cent returns in the past 5 years.
Having planned for your recurring income enough to meet your monthly expense, you can invest in reliable companies for 10 years without bothering about short-term volatilities. It is like buying stocks and forgetting them for ten years. With the right investments and the power of compounding, being invested for such a long time could lead to the enormous wealth creation that could take care of your post retirement needs.
Like 5-10 years is a long time, and it takes a lot of patience for an investor to have an open position for so long. The world has changed a lot over the past decade and will continue to do so in the next ten years. Being invested for so long in a basket of securities requires to plan and manage your finances efficiently.
However, if you have just started working or in the middle of your career, you can still begin with investing in businesses that are sustainable and can yield you returns in the long term.
In this article, we shall put our lens through some LSE-listed stocks that have delivered massive returns in the long term.
- Games Workshop Group Plc
FTSE 250-listed manufacturer of fantasy miniatures and related products Games Workshop Group (LON: GAW) made significant improvements in earnings per share and cash generation during the first half of 2021. The company backs sustainable development and distributes earnings in the form of dividends. The Warhammer table-top game company announced a surprise dividend of 45 pence per share late on 17 March.
In the past five years, Games Workshop Group stock has rallied over 1,800 per cent. This implies that people who invested in this stock five years ago witnessed their investment grow by 19 times. This has been an excellent tool for wealth creation.
- Ferrexpo Plc
FTSE 250-listed iron ore pellet producer Ferrexpo Plc (LON: FXPO) witnessed an increase of 13 per cent in revenue to US$1.7 billion during 2020. Also, the company’s net cash flow from operations increased by 45 per cent to US$687 million. During 2020, the company paid dividends worth US$195 million; increased by 26 per cent year-on-year.
In the past five years, Ferrexpo’s stock has rallied over 1,591 per cent. This implies that people who invested in this stock five years ago, witnessed their investment grow by nearly 16 times.
- Future Plc
The global platform for specialist media, Future Plc (LON: FUTR) recently acquired GoCo Group Plc has decided to extend its eCommerce capabilities beyond products and services and further bolstered its position as a leading global specialist media and intent platform. Future also acquired the Australian price comparison website of personal finance products Mozo, for AUD$30 million. The Group carried the strong momentum from Black Friday and Christmas to the current trading period, driven by high levels of online engagement.
In the past five years, Future’s stock has rallied over 1,466.50 per cent. This implies that people who invested in this stock five years ago, witnessed their investment grow by over 15 times.
- Kainos Group Plc
FTSE 250-listed IT services provider Kainos Group (LON: KNOS) continued to deliver solid performance and expects to close 2021 with results ahead of market expectations. Under the Digital Services segment, the company continued to progress on long-term engagements with the UK government’s transformational programme, including NHS ventures. Kainos also continued to win new contracts under the Workday Practice division.
In the past five years, Kainos stock has rallied over 575 per cent. This implies that people who invested in this stock five years ago, witnessed their investment grow by over 6.5 times.
- Ocado Group Plc
Online grocery retailer Ocado Group (LON: OCDO) witnessed its retail revenue soar by 40 per cent year-on-year during the first quarter of 2021. The paradigm shift in the shopping behaviour of the consumers has been a boon for online retailer. The shift towards online shopping is expected to continue in the near term.
In the past five years, Ocado stock has rallied over 563 per cent. This implies that people who invested in this stock five years ago, witnessed their investment grow by over 6.5 times.
- Softcat Plc
UK’s leading provider of IT infrastructure products and services Softcat (LON: SCT) recorded double-digit growth of 20 per cent in gross profit during the first half of 2021 due to strong top line performance. Despite the ongoing challenges of remote working, the company managed to grow its customer base by 1.5 per cent to 9,600. The company also declared an interim dividend of 6.4 pence of share for the first half of 2021, which was up by 18.5 per cent.
In the past five years, Softcat stock has rallied over 530 per cent. This implies that people who invested in this stock five years ago, witnessed their investment grow by over 6 times.
- EVRAZ Plc
FTSE 100-listed Industrial Metal Mining Company, EVRAZ Plc (LON: EVR) generated a robust free cash flow of US$1,020 million and witnessed a continued reduction in net debt, despite the unprecedented crisis during 2020. However, the company managed to grow its net profit to US$ 858 million during 2020. (FY19: US$ 365 million). Most of the nations are under the recovery phase as we head deeper into the post vaccine world. The demand for industrial metals is likely to surge beyond the pre-pandemic levels.
In the past five years, Evraz stock has rallied over 487 per cent. This implies that people who invested in this stock five years ago, witnessed their investment grow by over 5.8 times.
- Anglo American Plc
FTSE 100 listed miner Anglo American Plc (LON: AAL) had a strong balance sheet and generated sustainable cash flows during the fiscal year 2020. The company witnessed a strong recovery in demand for rough diamonds and therefore, expects production to be in the range of 32-34 million carats, with improved grade performance at Jwaneng and Venetia in 2021. Meanwhile, the company delivered strong cash returns and proposed a final dividend per share of US$ 0.72 per share for 2020. The company is also targeting carbon neutrality across the operations by 2040.
In the past five years, Anglo American stock has rallied over 455 per cent. This implies that people who invested in this stock five years ago, witnessed their investment grow by over 5.5 times.
- Ashtead Group Plc
FTSE 100-listed industrial transportation company Ashtead Group Plc (LON: AHT) delivered a strong performance in the nine-month period ended January 2021. Despite the massacre caused by the pandemic, the company managed to deliver a record free cash flow of £1,059 million for the nine-month period ended January 2021 (2020: £363 million).
In the past five years, Ashtead Group stock has rallied over 424 per cent. This implies that the stock has grown five times in five years.
- AVEVA Group Plc
FTSE 100-listed engineering and software company, AVEVA Group (LON: AVV) has recently acquired OSIsoft LLC that enhances Aveva’s ability to accelerate the industrial world’s digital transformation. The company witnessed a strong quarter of contract renewals along with an increase of more than 26 per cent in revenue during the three-month period ended December 2020.
In the past five years, Aveva’s stock has rallied over 333 per cent. This implies that people who invested in this stock five years ago, witnessed their investment grow by over 4.3 times.