Investing $2,000 in Each of These 3 Growth Stocks 20 Years Ago Would Have Made You $3.8 Million

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Investing in growth stocks can lead to huge returns in the long run. The problem is that it can be difficult to predict which ones will become the real deal and which ones will fail miserably. That’s why rather than investing a large sum into one stock, you may be better off spreading that amount across multiple investments. Even if you get most of your stock picks wrong, hitting a home run with one growth stock can more than make up for those losses.

Take the following three stocks as examples: Nvidia (NASDAQ: NVDA), Netflix (NASDAQ: NFLX), and Apple (NASDAQ: AAPL). They all would have generated life-changing returns for you during the past 20 years. And if you had invested $2,000 into each one of them, then the total value of all those investments would now be worth about $3.8 million. Here’s a look at what those investments would be worth individually, and if these stocks are still good buys today.

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Nvidia was a promising tech company in the early 2000s, but its value has gone on a rapid ascent in just the past couple of years, and that’s when investors would have earned mammoth returns. Thanks to the emergence of ChatGPT and the growing popularity of chatbots powered by artificial intelligence (AI), demand for Nvidia’s chips has been soaring. Its new Blackwell chips are sold out, with customers now having to wait a year or longer for them.

A couple of decades ago, it would have been impossible to forecast this type of scenario; the unpredictability of growth stocks highlights why putting some money on a promising company could make a lot of sense. In its 2004 fiscal year (Nvidia’s year ends in January), Nvidia’s revenue totaled $1.8 billion and it had declined from the $1.9 billion it reported in the previous year. Although the business was still growing, its performance that year pales in comparison to the company’s recent quarters, where sales have been more than doubling.

Nvidia’s business has evolved drastically in just the past couple of years and that has helped it become the most valuable company in the world, with a market cap of about $3.6 trillion. A $2,000 investment in the company 20 years ago would be worth about $2.2 million today. While Nvidia is unlikely to replicate those types of returns during the next 20 years given its mammoth valuation, it can still be a good buy for growth investors looking for a solid stock to hold on to for the long haul.

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