3 Stocks That Turned $1,000 Into 1 Million (or More)

The stock market is one of the best ways to build lasting wealth. That’s because over time, the broad S&P 500 has averaged about a 10% yearly return.

But if we look back at history, we’ll find some businesses that have crushed the market, turning small investments into seven-figure sums.

Here’s a closer look at Apple (NASDAQ: AAPL), Costco (NASDAQ: COST), and Home Depot (NYSE: HD), three magnificent consumer stocks that turned $1,000 into more than $1 million.

1. Apple

First on this list is the world’s most valuable brand. Apple has been a leader when it comes to selling some of the most popular electronics products out there. And this has propelled the FAANG stock 191,000% in the last roughly 43 years, turning $1,000 into $1.9 million today, including dividends.

While the iPhone still brings in more than half of the revenue, the business is finding success with other devices, like the MacBook, AirPods, and Watch. Combined, hardware made up 81% of total sales in the fiscal 2024 first quarter.

But the software and services division is rapidly ascending to become a more important business driver. Offerings include things like Apple Card, Pay, Music, TV+, iCloud, and advertising. Revenue here was up 11%, higher than the company total. With a gross margin exceeding 70%, services can boost Apple’s profitability over time.

Investors hoping for similar returns from this business over the next several decades should probably temper expectations. Apple’s massive revenue base is struggling to grow at a high rate. Sales dipped 2.8% in fiscal 2023, indicating a mature enterprise.

And the current price-to-earnings (P/E) ratio of 29.3 is very expensive, at least based on the average valuation of the last 10 years. This can also limit forward returns.

2. Costco

With trailing-12-month sales of $241 billion, Costco is the world’s third-biggest retailer. It operates hundreds of warehouses across the globe, offering shoppers high-quality merchandise at extremely low prices. This business…