The saying goes “with big risk comes big reward” — and that’s certainly what investors were banking on when they bought shares (or simply stayed invested) in these floundering companies.
Luckily, these dicey investments proved that sometimes a gambler’s spirit can lead to a seriously lucrative outcome. Read on to find out five of the riskiest investments that paid off big time.
1. Apple in December 1997
In today’s day and age, Apple is one of the most stable companies in the industry, but back in the 90s, that wasn’t the case. Stock prices were at a measly 46 cents a share by December 1997, when the company was forced to either make it or break it. Fortunately, against all odds, Apple made it — and in a big way.
Of course, hindsight is 20/20 for those who missed out on big investment gains for this technology powerhouse.
2. Ford in January 2009
As the rest of the world’s finances started collapsing in 2009, so did the auto industry — nearly taking Ford down in the process. Stocks fell to just $1.45 a share, largely because gas prices had skyrocketed in 2008, pushing die-hard fans of Ford’s gas-guzzling trucks and SUVs towards fuel-efficient vehicles that would help their bottom line. Thanks to the major bailout program in place by the U.S. government, Ford re-shifted its focus to more environmentally friendly rides — and saw a major rebound.
3. Nasdaq in October 2002
You can thank the dot-com boom for this major downturn. When tech companies started to blossom in the late 90s, the Nasdaq saw index numbers as high as 5,000 — a stark contrast to the puny 1,114.11 in October 2002. Thankfully, with time came a return to Nasdaq’s prosperity — on Jan. 26, 2018, the index staked out a new high of 7,505.77, a nearly seven-fold rise from its bottom in October 2002.
4. American Airlines in November 2011
Back in 2011, you could’ve bought a share of American Airlines stock for two dimes — literally. Thanks to the rising fuel costs and a sluggish economy, many investors thought American Airlines was headed for an implosion — but patience paid off. Shareholders who stuck out the dark days made a windfall, with the stock price approaching $60 in January 2018.
5. Wynn Resorts in January 2016
In the luxury hotel industry, Wynn Resorts’ name looms large. In 2013, the company’s creator, Steve Wynn, made major coin thanks to the Chinese gambling mecca of Macau, skyrocketing his company’s shares to $249.31. Less than two years later, his stocks plummeted massively — back down to $50, worrying shareholders.
Even though his stock has since recovered, Wynn has recently been splashed all over the headlines in light of the #MeToo movement, so stay tuned to see if there’s another valley in the future of Wynn Resorts.
More on Investing:
- The Best Online Stock Brokers for Beginners
- 10 Best Penny Stocks for Investors Who Love Risk
- 13 Best First-Time Homebuyer Programs
- Watch: We Know Warren Buffett’s Best Investing Secret, Do You?
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