Building a $1 million position in a stock isn't as hard as you might think, and it doesn't require a huge initial investment. However, you'll still need two key ingredients: time and solid, consistent returns. Find a business that can steadily build market share and earnings power over several decades, and you've got a great shot at seeing life-changing levels of gains.

You don't need to own highly speculative tech stocks to see this type of growth, either. There's a retailer, in fact, that has helped create many millionaires since its initial public offering in 1985. With $2,400 invested in the stock at its IPO price, you'd have over $1 million today (not including dividends). Read on to see which retailer made this impressive feat happen, and how the chain has continued setting records in 2024.

The math

The retailer in question is none other than Costco (COST 1.70%), which went public in Dec. 1985 at an IPO price of $10 per share. Adjusting for stock splits, that IPO price was approximately $1.67 per share.

Investing $2,400 at that time (or about $6,500 in today's dollars) would have given you about 1,400 shares of the warehouse retailing specialist.

Based on the stock's $715 share price as of this writing, the value of that holding would be sitting at over $1 million today, translating into a compound annual growth rate of about 17% over the past 39 years. In absolute terms, Costco stock has risen a whopping 42,700% since its IPO, while the S&P 500 is up 2,350% over the same period -- not a bad run for a business situated in a mature, highly competitive industry characterized by low profit margins.

And again, those gains don't include Costco's dividend payments, which have been substantial in recent years. Your position would be worth even more if you chose to automatically reinvest those dividends in additional shares of the company as well.

A powerful selling approach

The first Costco warehouse opened in Seattle, Washington, in 1983 and the no-frills operating model was an immediate hit with its customers looking for deals. The chain keeps costs low mainly by creating a highly efficient shopping process. "Our warehouses are not elaborate," management points out in Costco's annual report.

That strategy combines perfectly with the chain's membership approach that charges subscription fees for access to the club, which are in turn directed toward keeping prices low. Costco rode that approach to quick success by becoming the first company ever to reach $3 billion of sales in less than six years from its founding. The chain now generates about $250 billion in annual revenue.

Excitement for the future

Wall Street remains excited about Costco stock today. Shares are outperforming the broad market year to date as the chain continues to demonstrate its ability to find ways to sustain growth. Customer traffic has been healthy, and shoppers are flocking to its online store. Most recently, the company has seen strong success in selling gold bars to its members, lifting sales by as much as $200 million per month.

Sure, Costco is an established, mature business that can't realistically boost its sales as quickly as it could a few decades ago. But that size also comes with huge economies of scale that allow it to acquire merchandise at competitive prices with the resulting savings for members keeping them loyal to the brand. It counts 71 million members around the world paying fees that deliver highly stable earnings for a retail business, and membership retention consistently sits above 90%.

Nearly four decades since the IPO, shareholders can still count on this millionaire-maker stock to deliver impressive returns.