Long-Term Investing: 2 Stocks That Could Turn $10,000 Into $100,000

Can $10,000 become $100,000? Discover the power of long-term investing and the strategies to achieve remarkable returns.

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Key Points

  • Long-term investing in growing businesses like Nvidia and Constellation Software can potentially turn $10,000 into $100,000 with returns driven by strong company fundamentals and growth catalysts like AI and acquisitions.
  • Despite economic swings and challenges, such as tech stock meltdowns or foreign exchange losses, staying invested in companies with secular growth offers lucrative long-term potential.
  • 5 stocks our experts like better than Nvidia.

Can stock market investing convert $10,000 into $100,000? It is not wishful thinking but a practical return is possible if invested in the right stocks for the long term. You must have read stories about how Apple and Amazon made their loyal shareholders who invested in them 15–20 years ago millionaires. That is the time a company needs to convert thousands into millions.

How to convert $10,000 to $100,000

If you want to convert $10,000 to $100,000, you need a portfolio that can give you 13% compounded annual returns for 20 years or 18% for 15 years. This growth may not be stable throughout, as every business undergoes challenges. There could be growth spurts and downturns. As long as secular growth is intact and the company’s fundamentals can withstand a downturn, you can stay invested or buy more at the dip to enjoy the cyclical growth.

Two stocks for long-term investing

A long-term investing approach is relatively safe if you are investing in a business. In this approach, you have to focus on the big picture and have a strong reason to be bullish on the company. If you can see demand for the company’s products and services increasing in the future, you can hold the stock with confidence during turbulent times. Apart from this, the company should have robust management, strong implementation, and lower debt.

Nvidia‘s long-term bull case

Nvidia (NASDAQ:NVDA) has converted $10,000 to $138,000 over the last five years. However, not all five years were green. There was a bear phase in the 2022 tech stock meltdown, when tech stocks crashed after a significant pandemic rally in 2021. NVIDIA’s stock fell more than 60% between November 2021 and October 2022 due to the meltdown and the crypto bubble burst, which dumped second-hand graphics processing units (GPUs) in the market. Nvidia had to slow production to give the market time to absorb the stock.

However, Nvidia’s secular growth catalyst was artificial intelligence (AI), on which it has been working since 2015. Its data centre GPUs suddenly became the talk of the town after the ChatGPT frenzy in November 2022 and led to a growth spurt. Those who stayed invested or bought the stock during the tech meltdown for its AI secular growth are now sitting on $128,000 profit.

Nvidia has another growth catalyst – AI at the edge, through self-driving cars, robots, drones, and other embedded devices. It is difficult to say when this growth will materialize, but it will. And when it does, Nvidia could see another growth spurt.

As for US tariffs blocking trade of Nvidia’s data centre GPUs to China, the company can thrive even during weak demand with its US$56.8 billion cash reserve. The management is using some of this cash to buy back shares, while focusing on innovation to maintain its reputation for designing the most advanced GPUs. This shows the management keeps shareholders’ returns at the forefront, presenting a bullish stance for long-term growth.

Constellation Software’s long-term investing case

This evergreen resilient growth stock Constellation Software (TSX:CSU) has a track record of generating a 20% compounded annual growth rate in the last 10 years. During this time, it converted $10,000 to $79,000. However, CSU’s 2025 performance has been tepid due to a US$118 million foreign exchange loss. Constellation acquires vertical-specific software companies globally, collects cash from maintenance fees, and reports its consolidated earnings in US dollars.

The tariff uncertainty stirred up the dollar value and reduced its net income by 68% to US$56 million in the second quarter. Thus, the stock fell 11% after the earnings release and still trades at a lower price. Net income could improve once the value of the dollar normalizes.

The foreign exchange loss does not impact Constellation’s compounding business model of using the cash flow from acquired companies to acquire more companies. You can buy and hold the stock as the acquisitions will continue to add to the enterprise value. Since the company does not dilute its shares through a stock split, the share price could keep growing.

Fool contributor Puja Tayal has no position in any of the stocks mentioned. The Motley Fool recommends Amazon, Apple, Constellation Software, and Nvidia. The Motley Fool has a disclosure policy.

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