Most investors don't have $1 million to invest in a single stock. But it's fascinating to see what would happen if you went all in on one of the best investments in recent history: Palantir Technologies Inc (PLTR +1.09%). Want to know what a $1 million investment during Palatir's IPO would be worth today? Prepare to be shocked.
NASDAQ: PLTR
Key Data Points
Palantir stock has been a dream for patient investors
It's not easy to spot stocks capable of truly massive growth. But if you were lucky enough to buy into Palantir when the company went public in September 2020, you've achieved what most investors can only dream of: growth of nearly 1,800% in just five years. A $1 million initial investment would now be worth around $18 million!
But when you look at Palantir's history, the ride hasn't always been smooth. In fact, there's a clear lesson here for investors looking to replicate such an incredible performance.
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Warren Buffett has said that his favorite holding period is "forever." But this is easier said than done. Palantir's trading history demonstrates this reality well.
In 2020, Palantir went public at roughly $10 per share. Within a few months, shares had soared to around $35 -- a 250% profit in just 100 days! Many investors decided to cash in. That seemed like a smart choice for a while. In 2022, shares slid below the $10 mark yet again.
When looking at long-term price charts, it can be easy to miss how volatile a stock has been over the short term. Yes, Palantir stock now trades above $170 per share. But as with the previous example, there have been many steep ups and downs. If you find a business worth owning for decades, avoid timing the market. Instead, keep a steady hand. Those who did so with Palantir stock are likely sitting on the biggest gains.
