"If you aren't thinking about owning a stock for 10 years, don't even think about owning it for 10 minutes." That's sage advice from billionaire investor Warren Buffett, who has been a buy-and-hold investor for decades. But while buying and holding investments for decades is a solid way of achieving significant gains on the stock market, some investors have amassed incredible returns over much shorter time frames.
Below, I'll look at three stocks that have generated significant gains for investors over the past half-decade. Investing $10,000 into Nvidia (NVDA +2.59%), Strategy (MSTR 0.17%), and Mara Holdings (MARA 1.34%) five years ago -- $30,000 total -- would have produced a portfolio worth $566,000 today. Here's a look at why these stocks have done so well, and whether it's too late to invest in them right now.
1. Nvidia
NASDAQ: NVDA
Key Data Points
Chipmaking giant Nvidia is one of the most valuable companies in the world, with a market cap around $2.6 trillion. Although its valuation has been falling this year as investors grow concerned about the overall health of the markets, this business has become the face of artificial intelligence (AI). As other companies invest in next-gen technologies and advance their plans for AI, Nvidia often plays a key part of that process, providing the chips needed to drive that development.
A $10,000 investment in Nvidia five years ago would have swelled to a value of around $174,000 as I write this, as it has been among the best tech stocks you could have owned during that period.
And with a lot more growth on the horizon in AI, plus Nvidia posting nearly $73 billion in profit in its most recent fiscal year (which ended on Jan. 26), this company looks unstoppable over the long term. Despite its seemingly high valuation, it can be a great buy today, trading at 26 times estimated future profits.
2. Strategy
NASDAQ: MSTR
Key Data Points
Strategy, the current name of MicroStrategy, has also been a red-hot buy over the past five years. If you invested $10,000 into the tech company back in early 2020, that position would now be worth $196,000 -- even more than the stake in Nvidia from the last section. And that's accounting for Strategy's stock price falling in recent weeks.
The driving force behind the stock is Bitcoin. The cryptocurrency recently hit the $100,000 mark -- though has since fallen back -- and many crypto enthusiasts are optimistic that under the Trump administration, there will be more favorable policies put into place that can help its value rise even higher in the near term.
Strategy, as the largest corporate holder of Bitcoin, stands to profit considerably from any uptick in the digital currency's value. With its recent rebrand to Strategy, the company noted that its "new logo includes a stylized 'B', signifying the company’s Bitcoin strategy, and its unique position as a Bitcoin Treasury Company. The brand’s primary color is now orange, representing energy, intelligence, and Bitcoin."
While it's technically a provider of business intelligence software solutions, the big reason behind the excitement around Strategy is for its exposure to crypto. The overall business incurred a whopping $1.2 billion loss last year and investors should brace for more volatility given its Bitcoin holdings.
While the stock has been a great buy over the past five years, this is a risky and volatile stock to hold. Unless you're bullish on crypto, you may want to take a pass on Strategy.
3. Mara Holdings
NASDAQ: MARA
Key Data Points
Rounding out this list of high-performing stocks is Mara Holdings, which has also benefited from Bitcoin's rising valuation in recent years. A $10,000 investment into the Bitcoin mining company five years ago would now be worth $196,000.
Mara Holdings is coming off a strong year in 2024, in which its net income doubled to $541 million. But its cost of revenue ($816 million) was actually higher than the revenue it generated ($656 million). Gains on the fair value of digital assets were the big reasons why the business achieved such impressive results. And that means that if Bitcoin struggles, so will Mara's financials. It is the second-largest corporate holder of Bitcoin after Strategy.
As with Strategy, Mara Holdings will inevitably be a volatile investment to hang on to, and it also may only be a suitable option for crypto investors with a high-risk tolerance.
