How 3 US Growth Stocks Could Have Transformed Your Investment Over the Last Decade

Introduction

We often hear investment experts urging us to invest for the long term. However, seeing the benefits can be tough as time is needed for patient investing to show its effects. The best way to highlight the importance of long-term investing is through real-life examples of companies that have compounded wealth over years, if not decades. These growth stocks have delivered solid returns for shareholders who held on through the years. Here are 3 US growth stocks that would have multiplied your money if you had invested S$1,000 in them a decade ago.

1. Visa: A Journey from Plastic to Prosperity

Visa (NYSE: V), the global payment processing juggernaut, isn't just about plastic cards anymore. It's a digital powerhouse that seamlessly connects individuals, banks, and businesses through secure and convenient payment systems. But what if I told you that Visa's journey has been more exhilarating than a rollercoaster ride at an amusement park? Buckle up, young investor, because this is a story worth investing in.

• The Rise of Visa: Turning S$1,000 into S$5,400

  Picture this: It's June 1, 2014. You decide to invest S$1,000 in Visa. Fast forward to today, and your investment has grown a whopping 5.2 times, landing you at S$5,200. How did this magic happen? Well, Visa's share price skyrocketed from a humble US$52.68 to a jaw-dropping US$273.62. But that's not all. Like a cherry on top, you received regular quarterly dividends, consistently increasing year after year. Over the past decade, these dividends added up to US$10.965 per share, pushing your total gain to 5.4 times and turning your initial S$1,000 into a cool S$5,400. 🚀

• The Thrilling Numbers: Fiscal 2024 and Beyond

  Hold on tight, because Visa's growth story isn't slowing down. In the first half of fiscal 2024 (ending March 31), Visa flexed its financial muscles: 

  - Revenue Surge: A jaw-dropping 9.3% year-on-year revenue increase, hitting a staggering US$17.4 billion. That's like finding a treasure chest filled with gold coins.

  - Operating Income Boost: Operating income danced its way up by 8.5% year-on-year, reaching US$11.3 billion. Imagine a stack of dollar bills so high you need a ladder to count them.

  - Net Profit Leap: Net profit didn't just leap; it pole-vaulted 13.2% year-on-year to US$9.6 billion. That's more zeros than a teenager's Instagram follower count.

  - Cash Flow Magic: A robust free cash flow of US$7.6 billion for 1H FY2024, matching last year's stellar performance. It's like Visa's printing money faster than a hyperactive photocopier.

•  Why Visa Is Your Golden Ticket

  Visa isn't just a payment processor; it's a financial wizard. Here's why you should stash it in your investment treasure chest:

  1. Global Dominance: Visa operates in over 200 countries, processing transactions in 160+ currencies. It's like having a backstage pass to the world's financial concert.

  2. Resilient Consumer Spending: Even during tough times, consumer spending remains resilient. People swipe, tap, and click their way through life, and Visa rides that wave.

  3. Digital Transformation: Visa isn't stuck in the past. It's surfing the digital tsunami, expanding its digital payment solutions faster than you can say "cryptocurrency."

So, young investor, grab your metaphorical passport and hop on the Visa train. It's a journey from plastic to prosperity and the best part? The adventure is far from over. 🌏💰

2.  Alphabet: Unlocking Alphabet’s Growth

Alphabet, the parent company of Google, is not just a search engine giant. It's a tech titan with diverse revenue streams, including Google Cloud and YouTube. If you're a young investor, pay attention—this could be your golden opportunity.

• The Numbers Don't Lie

  Imagine investing S$1,000 in Alphabet a while back. Today, that investment would have ballooned to S$6,000! How? Alphabet's share price skyrocketed from US$29.23 to US$175.09. 📈

  But wait, there's more. Alphabet's financials tell an impressive story:

  1. Revenue Surge: In 2023, Alphabet's revenue surged by 9% year-on-year, hitting a whopping US$307.4 billion. That's like stacking skyscrapers of cash! 💰

  2. Profit Power: Net profit? Oh, it jumped 23% to US$73.8 billion. That's more than the GDP of some countries! 🌟

  3. 2024 Momentum: The party didn't stop in 2024. First-quarter revenue climbed 15% year-on-year to US$80.5 billion. And net profit? Brace yourself—57.2% surge to US$23.7 billion! 🚀

• AI: The Secret Sauce 

  Hold onto your hats. Alphabet recently unveiled its enhanced Gemini AI solution. It's like sprinkling magic dust on their iconic search engine. AI is no longer sci-fi; it's the beating heart of Alphabet's future growth.

• Dividends? Yes, Please!

  Guess what? Alphabet just served up its first-ever quarterly dividend—US$0.20 per share. That's a nod of confidence in their future. 🎉

• The Bottom Line

  Investing in Alphabet a decade ago would've been a jackpot. But don't fret—the growth story isn't over. Alphabet keeps pushing boundaries, and you can ride that wave. 🌊

So, young investor, buckle up. Alphabet's rocket ship is fueled and ready for liftoff! 🚀🌟

3.  Apple: A Decade of Innovation and Investment Opportunities

Apple (Nasdaq: APPL), the trailblazer behind the iconic iPhone, is much more than a smartphone company. Its diverse product lineup includes the iPad, iMac, Apple Watch, and the cutting-edge Vision Pro headset. But what truly sets Apple apart is its rich ecosystem of services and apps that seamlessly integrate into our daily lives.

• The Investment Journey: From S$1,000 to S$9,540

  Imagine investing S$1,000 in Apple a decade ago. Fast forward to today, and your investment would have skyrocketed to an impressive S$9,200, excluding dividends. But wait, there's more! Including the total dividends of US$7.40 paid out from 2014 to now, your investment would have grown to a remarkable S$9,540. That's the kind of growth that turns heads and makes investors smile.

• Navigating Fiscal Waters

  In the first half of fiscal 2024 (1H FY2024), Apple faced both challenges and triumphs. While revenue dipped slightly by 0.8% year-on-year to US$210.3 billion, net profit surged by 6.3% to US$57.6 billion. These numbers reflect a company that knows how to weather storms while staying ahead of the curve.

• The AI Revolution: Apple Intelligence

  Hold onto your AirPods because Apple is diving headfirst into the AI realm. With the imminent launch of "Apple Intelligence," a groundbreaking AI software set to be integrated into its devices, the tech giant is poised for another leap forward. Imagine smarter Siri, more intuitive features, and seamless automation—all powered by Apple's AI wizardry.

• iOS 18: A Game-Changer

  The upcoming iOS 18 promises enhanced customization and productivity tools. Picture a personalized experience that adapts to your needs, making your iPhone an extension of your thoughts. As young investors, keep an eye on this upgrade—it's not just about emojis and widgets; it's about unlocking new possibilities.

• The Bottom Line

  Investing in Apple a decade ago was a smart move. But here's the exciting part: Apple's journey is far from over. With AI innovations and game-changing software updates, the future shines even brighter. So, young investors, consider Apple not just as a brand but as a beacon of opportunity. 🚀

Conclusion

Investing in US growth stocks like Visa, Alphabet, and Apple a decade ago would have yielded substantial returns, showcasing the power of long-term compounding.

• Visa: A S$1,000 investment in Visa would have grown to S$5,400 today, including dividends. The payment processing giant continues to demonstrate strong growth, with increasing revenues and profits, and a promising future driven by robust cash flow and market expansion.

• Alphabet: Investing S$1,000 in Alphabet would have turned into S$6,000, driven by its diverse revenue streams from Google, Google Cloud, and YouTube. The tech titan's continuous growth, recent AI advancements, and initiation of quarterly dividends highlight its ongoing potential for investors.

• Apple: An investment of S$1,000 in Apple a decade ago would have skyrocketed to S$9,540 with dividends. Despite recent mixed financial results, Apple’s innovation in AI and new features in iOS 18 promise continued customer loyalty and future sales growth.

These examples underscore the benefits of long-term investing in high-quality growth stocks. By holding onto well-managed companies with strong fundamentals and innovative potential, investors can significantly enhance their wealth over time.