We've all heard stories of investors striking gold on the share market.
The beauty of investing in ASX shares for the long term is that your downside is capped, but your upside is unlimited.
In other words, you can only lose as much as your initial investment. But there's no ceiling on what that investment could become.
Of course, it isn't easy finding multi-baggers on the ASX. But with fundamental research, temperament, and perhaps a sprinkle of luck, opportunities abound.
The road to becoming a millionaire doesn't necessarily require a big upfront investment either.
As you'll see, a $5,000 investment 10 years ago in each of the ASX shares below would have turned into more than $1 million today. Let's take a look.
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Altium Limited (ASX: ALU)
Kicking things off, Altium shares have returned a whopping 3,600% over the last 10 years. So, a $5,000 investment would now be worth around $180,000 today.
In FY12, Altium booked US$61 million of sales, with subscription sales representing 44% of the total.
Fast-forward a decade and the ASX 200 tech share has grown its top line at a compound annual growth rate (CAGR) of 14%.
Altium delivered sales of US$221 million in FY22, with recurring revenue making up 75% of the pie as the company transitions from perpetual licenses to term-based licenses and subscriptions.
PolyNovo Ltd (ASX: PNV)
PolyNovo announced itself on the ASX stage in 2019, taking out the title of the second best-performing ASX 200 share with a yearly gain of 231%.
But PolyNovo's history on the ASX dates back to 2008 when ASX-listed biotechnology company Calzada acquired it. The group divested its other operations and changed its name to PolyNovo in 2014.
In 2012, a $5,000 investment in what was then Calzada would have blossomed into $187,000 today, returning an eye-catching 3,730%.
Rewinding a decade, PolyNovo had just completed its first two human clinical trials for its NovoSorb BTM technology.
Today, NovoSorb BTM is sold across Australia and New Zealand, the United States, the United Kingdom, and Europe, generating global sales of $38 million in FY22.
Pinnacle Investment Management Group Ltd (ASX: PNI)
Next up, we have investment management company Pinnacle, which has grown its share price by 3,445% over the last 10 years. This means a $5,000 investment would be worth a chunky $172,000 today.
Pinnacle has come a long way since 2012 when it operated under the banner of Wilson HTM Investment Group. At the time, it had funds under management (FUM) of $10 billion across six affiliated boutique funds. This included the likes of Hyperion and Plato, which are still around today.
As we know, the Pinnacle of today is a much more formidable force, boasting FUM of $84 billion across an affiliate network of 15 fund managers.
HUB24 Ltd (ASX: HUB)
ASX 200 fintech share HUB24 has also been a standout performer over the last decade, flaunting returns of 3,700%. In other words, a $5,000 investment 10 years ago would have grown to a handsome $185,000 today.
Back then, the HUB24 platform had funds under administration (FUA) of $190 million. And it had only just rolled out its personal superannuation product.
Fast forward to today and HUB24 is one of the fastest-growing platforms in the market, boasting FUA of $68 billion through a network of 3,639 advisers.
Objective Corporation Limited (ASX: OCL)
Objective Corp isn't a well-known tech name but it's been one of the best performers on the ASX over the last decade. Rocketing 2,530%, a $5,000 investment 10 years ago would have turned into $127,000 today.
In FY12, the founder-led ASX tech share generated $40 million of revenue, 23% of which was reinvested in research and development. The business would have been trading on less than 1x sales at the time.
Today, Objective commands a market capitalisation of $1.3 billion, delivering $21 million of profit in FY22 from revenue of $107 million. Suffice to say, its valuation multiples have certainly expanded.
Dicker Data Ltd (ASX: DDR)
Last but not least, Dicker Data shares have catapulted 1,970% over the last 10 years. This means that a $5,000 investment would have shot up to almost $100,000 today.
In 2012, Dicker Data delivered record results but CEO David Dicker noted that despite the strong performance, it continued to struggle with most of the analyst community. In the company's 2012 annual report, he commented:
I am constantly told that our dividends are too high, we do not have 'independent' directors and there are not enough shares with the public. Rather than discuss this in detail I will just say that our results speak loudly and that I am very comfortable with our strategies.
A decade and a return of 1,970% later, David Dicker continues to lead the business and prove sceptics wrong.
The road to becoming a millionaire
All up, $5,000 investments into each of these six ASX shares would be worth a tidy $950,000 today purely from capital growth.
Adding in dividend income, particularly from Pinnacle and Dicker Data, tips us into the million-dollar territory.
In fact, those $5,000 worth of Pinnacle shares in 2012 would have generated $8,000 in dividends this year alone. That's more than the initial investment!
