The best performing shares in Australia you MUST buy: Top 20 stock market success stories of the past two decades show some have delivered returns above 1,000 per cent –
- Fortescue Metals Group was the leading ASX 300 company in Australia
- The Andrew Forrest run company took ‘calculated risks with huge rewards’
- Likes of REA Group, Data #3 and Reece featured in top 20 from 2000-2020
Australia’s best performing shares have delivered returns above 1,000 per cent since the turn of the millennium.
Ausbil, a leading Australian investment manager, examined the share price growth and dividends of ASX 300 companies stretching back to the year 2000.
The financial experts have compiled a Top 20 of stock market success stories revealing the companies you should invest in.
Fortescue Metals Group, the brainchild of Perth based mining magnate and billionaire Andrew ‘Twiggy’ Forrest, quickly emerged as a standout.
The resources giant has given its shareholders total returns of more than 330,000 per cent – or 50 per cent annually.
Andrew ‘Twiggy’ Forrest (pictured above) is a billionaire due largely due to the success of his company Fortescue Metals Group
Jessica Amir (pictured above), a market analyst with Bell Direct, advised that investors should look to technology and consumer trends
Excelling on the stock market in Australia is not an easy task without the right knowledge (stock image)
‘There was an incredible amount of hurdles they had to overcome to get there, but to the credit of Andrew Forrest, he had the vision,’ Ausbil Investment Management founder Paul Xiradis said.
‘Now it is one of the highest-paying dividend stocks in the market.’
REA Group came in second, delivering total returns above 70,000 per cent.
The company built online property website realestate.com.au, which dominates the real estate market, before expanding overseas.
REA’s total return since the year 2000 is 71,000 per cent, or just under 40 per cent annually.
Brisbane-based company Data#3, which provides utilised cloud technology at IT services, sit in third spot, ahead of health care giant Ramsay Health Care in fourth.
Credit Core Group rounded out the top five.
Other companies which featured in the top 20 included the Breville Group, Oz Minerals, Reece, Webjet and Metcash.
Toby Grimm, a managed portfolio analyst from Baker Young, said Fortescue’s ability to take calculated risks resulted in huge rewards.
‘They went from a minnow nipping at the heels of Rio and BHP to a bona fide giant in its own right,’ he told the publication.
Mr Grimm added diversifying across sectors and stocks is the best way to manage risk.
Jessica Amir, a market analyst with Bell Direct, advised that investors should look to technology and consumer trends.
She said educating yourself about the market is essential, as well as seeking companies who have strong management.
Ms Amir also pointed to a number of sectors to watch beyond 2020, including health care, technology, agriculture, mining an renewable energy.
Top 20 share market leaders (from 2000-2020)
1. Fortescue Metals Group
Total return 334,000%, Annualised return 50%
2. REA Group
Total return 71,000%, Annualised return 38.9%
3. Data #3
Total return 9650%, Annualised return 25.7%
4. Ramsay Health Care
Total return 5380%, Annualised return 22.1%
5. Credit Core Group
Total return 5290%, Annualised return 22%
6. Cromwell Property Group
Total return 4000%, Annualised return 20.4%
7. Saracen Mineral Holdings
Total return 3450%, Annualised return 19.5%
8. Jumbo Interactive
Total return 3440%, Annualised return 19.5%
9. Breville Group
Total return 3110%, Annualised return 18.9%
10. Monadelphous Holdings
Total return 3100%, Annualised return 18.9%
11. ARB Corporation
Total return 2900%, Annualised return 18.5%
12. Oz Minerals
Total return 2830%, Annualised return 18.4%
Total return 2590%, Annualised return 17.9%
14. Pro Medicus
Total return 2560%, Annualised return 17.8%
Total return 2160%, Annualised return 16.9%
Total return 2130%, Annualised return 16.8%
Total return 1890%, Annualised return 16.1%
Total return 1680%, Annualised return 15.5%
19. Cedar Woods Properties
Total return 1660%, Annualised return 15.4%
20. Eagers Auotmotive
Total return 1630%, Annualised return 15.3%
Source: Ausbil Investment Management