Thread: 11 stocks turned $10,000 into $100,000 in 2 years

Jackpot: 11 stocks turned $10,000 into $100,000 in just two years

By Matt Krantz, USA TODAY
Updated 13h 33m ago |

Q: Are there any stocks that would have turned $10,000 into $100,000 in just two years? What about Ford (F) stock?

A: Seems like there are quite a few investors looking for the big score.

A previous Ask Matt column discussed just how difficult it would be to have turned a $10,000 investment into a $100,000 one in five years. It turns out just four stocks in the Standard & Poor’s 1500 index, which is even broader than the more popular S&P 500, would have done it.

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Before plunging into your question, first realize just how rare making the kinds of returns we’re discussing here are. For a $10,000 investment to turn into a $100,000 one, you would need a total 900% return, or 216% a year on average. That’s a whopping return that is so far from the norm, it’s not even realistic. Large U.S. stocks, on average, have returned 9.5% a year, which would only be enough to turn a $10,000 investment into $11,990 in two years.

With that said, your question is intriguing because there’s a very valuable lesson in the findings. It turns out that 11 stocks in the S&P 1500 index would have gained enough to turn your $10,000 investment into $100,000 during the two years between Feb. 28, 2009 and Feb. 28, 2011, according to a USATODAY.com analysis of data from S&P’s Capital IQ.

You’re probably wondering why you could have scored a 900% return on 11 stocks in two years, but only four stocks posted those returns in five years. It’s all about timing.

Remember that in Feb. 2009, many stocks were severely depressed. Whole companies and even industries were feared to be circling in a death spiral. Many companies, if they could borrow, faced onerous terms and high interest rates. It was a dark time for companies.

But as investors learn, it’s during these dark times for companies that huge money can be made by those brave enough to step up and buy. The fact that shares of many companies were beaten down badly in 2009 is the reason why 11 companies turned in such stellar returns.

The 11 stocks that would have turned your $10,000 into $100,000 in two years were:

•Crocs (CROX), up 1347%

•Gulfport Energy (GPOR), up 1,227%

•ION Geophysical (IO), up 1,098%

•Ruby Tuesday (RT), up 1,072%

•Buckeye Technologies (BKI) , up 1,059%

•KapStone Paper and Packaging (KS), up 1,036%

•SFN Group (SFN), up 1,024%

•Veeco Instruments (VECO) , up 1,017%

•La-Z-Boy (LZB), up 1,016%

•Genworth (GNW), up 993%

•Sonic Automotive (SAH), up 906%

Source: USA TODAY research, S&P’s Capital IQ

Regarding Ford (F), while the stock was a big winner, it didn’t gain 900% between Feb. 28, 2009 and Feb. 28, 2011. During that time, Ford rose 653%, which is nothing to sniff at. However, had you had perfect timing, you could have scored an even larger gain. Anyone with the luck or foresight to buy Ford when it hit its rock-bottom price of $1.43 on Nov. 21, 2008 would have gained 952% through Feb. 28, 2011. That gain would have turned the $10,000 investment into $105,200.

Ford is just another example of a key lesson to investing. The lesson is that, in the paraphrased words of famous investor Warren Buffett, the time to get greedy and buy stocks is when other investors are terrified. And certainly, those that did got some of the biggest returns of their life.

Matt Krantz is a financial markets reporter at USA TODAY and author of Investing Online for Dummies and Fundamental Analysis for Dummies. He answers a different reader question every weekday in his Ask Matt column at money.usatoday.com. To submit a question, e-mail Matt at mkrantz@usatoday.com. Follow Matt on Twitter at: twitter.com/mattkrantz

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La-Z-Boy ?
All those out of work Americans?
Might as well be comfortable while you are looking for a job.