It’s hard to turn $10,000 into $1 million, but if you’re looking, one of the best places to find such an opportunity is the IPO market, where investors can get a chance to buy a company’s stock in its early years.
It takes time — maybe a decade or more — but these magic multipliers happen. And besides, aren’t hundred-fold returns worth the wait?
Many optimistic investors hope Facebook might be the next 100x darling. Whether it will remains to be seen, but we might get a better idea by examining other former IPO breakouts.
When looking at past examples of IPOs that hit the “Franklin multiple,” you see some interesting themes. The companies started with a focus on a core market, but they continued to fuel breakout growth — revenues ramps often hit 100%-plus year-over-year — through both innovation and entering new categories and markets.
The following five IPOs mostly fit the mold — with their own unique twists — and eventually turned $10,000 investments into $1 million: