There is no single strategy and approach when it comes to investing. While many professionals will say that using index funds is the best way to grow your portfolio, it can take a long time — decades in many cases — to really grow your portfolio to a significant amount of money.
You can also invest in many types of growth stocks, which may carry some risk but can also generate more significant returns in a shorter time frame. Three stocks that have performed exceptionally well since the start of the decade include adze (NASDAQ:TSLA), Nvidia (NASDAQ: NVDA)and Celsius Holdings (NASDAQ: CELH). Investing $13,000 in each of these stocks would put you at over $1 million right now.
Here’s how much they’ve risen since 2020 and how much a $13,000 investment in these stocks would be worth today (at the time of writing).
Image source: Getty Images.
Tesla stock is up about 1,500% since the start of the decade and would have turned a $13,000 investment into about $204,000 right now. Back then, Tesla was a much riskier-looking stock than it is today. It ended 2019 with a net loss of $862 million. It was an improvement over the previous year’s loss of $976 million, but it was still a very unprofitable business at the time.
Fast forward to today, and Tesla has proven many of its doubters wrong. In the past four quarters, the company has reported profits of less than $5.1 billion, and it is battling intense competition and margin pressures. In 2023, its profit was an incredible $15 billion.
The main problem with Tesla stock these days is valuation. The stock trades at more than 300 times its trailing earnings, and with a valuation of about $1.5 trillion, it’s one of the most valuable companies in the world. It’s not likely to generate massive returns given the high price today, but if you believe in the company’s vision to develop robots in the future, it may still be a good buy, but it comes with risks.
Chipmaker Nvidia is the most valuable company in the world, with a market capitalization of around $4.5 trillion. The company needs no introduction to anyone who has followed artificial intelligence (AI) stocks over the past few years. Its AI chips are the key ingredients in the development of next-generation models, chatbots and other products and services.
Nvidia stock has risen more than 3,000% in just over six years and would have turned a $13,000 investment back then into $412,000 today. Most of its growth has occurred in the past few years amid growing excitement around chatbots and all things AI.
Just a few years ago, in fiscal year 2023 (which ended on January 29, 2023), its net income was $4.4 billion. Meanwhile, over the past 12 months, the company’s profits are now just under $100 billion. It’s been a mammoth turnaround for both Nvidia stock and its business. That’s why even though its market cap is so high, it still trades at a fairly reasonable forward price-earnings (P/E) multiple of 24 and could remain a good long-term buy.
The only stock on this list that isn’t in the trillion-dollar club is beverage company Celsius Holdings. Its market value is only $14 billion. In 2020, however, he started the year with a valuation of around $220 million.
The company was still early in its supercharged growth, with its energy drinks growing in popularity ever since. From $75 million in revenue in 2019, to the company now generating over $2 billion on an annual basis, Celsius has been a tremendous growth stock to own over the past six years. The company acquired Alani Nu last year and has a strong distribution partnership with the drinks giant PepsiCo. P/E before 37 is not cheap, but this could also be a good long-term buy.
As of 2020, Celsius shares are up about 3,300%, and a $13,000 investment would now be worth about $439,000. When combined with the other stocks on this list, the total value of all these holdings would now be worth over $1 million. It should serve as a reminder of why picking growth stocks — even established ones — could be a worthwhile move for investors who are willing to buy and hold.
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David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Celsius, Nvidia and Tesla. The Motley Fool has a disclosure policy.
Investing $13,000 in These 3 Stocks in 2020 Would Have Made You a Millionaire Today was originally published by The Motley Fool