The stock market can be an incredible wealth-building machine for patient investors.
Over the last 30 years, the S&P 500 (SNPINDEX: ^GSPC) index has delivered a compound annual return of 10.5%, which would have turned an investment of $10,000 into almost $208,760
Many individual stocks have performed even better, albeit with more volatility along the way. But for young investors in their 20s, taking a little more risk for the opportunity to earn higher returns can be a worthwhile trade-off. If I were that age today, I’d buy these three stocks with the intention of holding them for the next 30 or 40 years until retirement. 1.
Nvidia Since going public in 1999, Nvidia (NASDAQ: NVDA) stock has returned a mind-boggling 831,900%. That translates to a compound annual return of almost 40% over the last 27 years, four times higher than the average annual gain in the S&P 500 over the same period. Nvidia created the world’s first graphics processing unit (GPU) in the late 1990s, which redefined 3D graphics for personal computers.