Investing in growth-oriented businesses that continually reinvest in their operations and focus on growing areas of the economy can lead to incredible returns. DexCom and Tesla are two stocks that have turned a $40,000 investment into over $1 million and $2.7 million, respectively, over the past decade.
DexCom, which produces continuous glucose monitoring (CGM) devices, has experienced significant growth in the past decade and is now consistently profitable. With 38% of the adult US population having pre-diabetes and 8.5 million undiagnosed individuals, DexCom’s future looks bright, especially with its newest G7 device approved for use in all types of diabetes for anyone two years of age and older. While not producing the same returns as the past decade, DexCom remains a great stock to buy and hold.
Tesla’s revenue has grown significantly over the past decade, generating $81.5 billion in revenue and earning a profit of $12.6 billion last year, becoming a top company and included within the S&P 500. With the global electric vehicle industry expected to grow at an annualized rate of about 24% through 2028, Tesla can continue to be a great growth stock. However, there are risks to consider, such as the growing number of competitors in the EV space and the possibility of developing fully autonomous vehicles. Nonetheless, with the stock down 50% from its 52-week high, Tesla remains a good buy.