When you first start investing in shares, it’s good to look at companies that you already know a bit about. This is of course not a guarantee of success, but it provides a good starting point. It also helps if these companies are in a sector you are familiar with.
The reason being, before investing in a stock it’s important to do your research and look at competitor performance, and the industry. If you pick a sector or company you have no interest in, then it will make this process boring and difficult.
A lot of my initial investments were in the tech and gaming industry as it’s an area I already follow closely. Luckily for me these are sectors which have done well, and gone from strength to strength over the last couple of decades.
However, in this post I’d like to share the two shares which have done the best and achieved the highest amount of growth in my portfolio. This is by no means a recommendation for you to go out and invest in the same, it’s purely to serve as a real example of the growth I’ve seen.
TAKE-TWO INTERACTIVE SOFTWARE (NASDAQ: TTWO)
Take Two Interactive is a video holding company which has seen fantastic growth over the past couple of years (especially since Q1 2017).
Two of the most well know publishers they own are Rockstar Games, and 2K. By far their biggest game franchise is the Grand Theft Auto series, and it is this which has contributed to a large amount of their growth.
As a holding company Take Two Interactive has exceeded growth targets for the last few quarters. And with the highly anticipated Red Dead Redemption 2 being released later this year, they are showing no signs of slowing down.
I purchased the shares at a price of $34.87 in March 2016, and today (July 2018) they are worth around $126. That’s an increase of over 260%!
NVIDIA Corporation Shares (NASDAQ: NVDA)
Nvidia are an American technology company who specialise in graphics cards and GPUs for computers.
I first heard about them when I got into gaming as a kid, and built my first computer. And after looking into the company more it seemed like a good purchase. One of the real benefits is it’s a growing market and Nvidia is by far the leader. With AMD it’s closest competitor massively trailing behind.
I first invested in Nvidia shares in August 2016, acquiring it at a price of $62 per share. Now in July 2018, they are worth around $250 a share! That’s an increase of over 300% per share in less than two years.
One of the main reasons Nvidia has done so well is due to Bitcoin. When Bitcoin erupted over the last couple of years many people created ‘mining rigs’ to harvest Bitcoin. And the more powerful the rig, the more it can mine and generate income. As a result Nvidia reported making $289 million in Q1 2018 alone, due to the Cryptocurrency.
This reminds me of a quote by legendary trader Peter Lynch. Lynch said:
“During the Gold Rush, most would-be miners lost money, but people who sold them picks, shovels, tents and blue-jeans made a nice profit.”
The same is true of Bitcoin, as many crypto ‘miners’ are starting to lose money as the price plummets. But the modern ‘shovel manufacturers’ like Nvidia are making a killing.
This lesson from Peter Lynch is something to think about when you are picking shares of your own. A company which is facilitating a trend via service or product, has the potential be a great investment.
If you want to start investing, check out our article: Simple Ways To Start Investing With Little Money.