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3 Stocks In Singapore That Have Gained Over 1,000% Since 2000

“In the short run, the market is like a voting machine. But in the long run, the market is like a weighing machine.”
– Benjamin Graham

The father of value investing sums it up simply. If you want to invest, long-term investing is the only way to go.

With reference to the quote above, Graham is basically saying that if we had invested in a stock and sold it off for a profit the very next day, it’s just luck. But, if we had invested in a company 20 years ago and manage to see some huge gains today, then skill is involved and we are really investing.

In Singapore’s stock market, I have picked out three billion-dollar companies that have delivered a total return (inclusive of gains from reinvested dividends) of over 1,000% since 2000. Put another way, the three companies have generated returns of over 15.5% per year over the past 16-plus years.

The trio are none other than CWT Ltd (SGX: C14)Raffles Medical Group Ltd (SGX: R01), and Ho Bee Land Ltd (SGX: H13).

Company Total Return %
CWT Limited 1883.32%
Raffles Medical Group 1729.33%
Ho Bee Land 1060.83%

Source: S&P Global Market Intelligence

How did these companies achieve such solid returns?

One key point to note is that all three have remained in the same business and industry over the past 16 years.

CWT was founded in 1970 and has remained in the logistics business ever since. Raffles Medical’s history can also be traced to the 1970s when it started as a two-clinic medical practice. Today, the company is Singapore’s largest private healthcare provider. In the case of Ho Bee, it started its property development business in 1989 and is today a global real estate powerhouse with operations in Singapore, Australia, China, and the United States.

The businesses that the trio are in may seem mundane. But, growth can come with the mundane. From 2000 to 2015, CWT’s earnings had grown from just S$4.7 million in to S$108.9 million. As for Raffles Medical, its earnings had spiked from S$5.3 million in 2000 to S$69.3 million in 2015. Ho Bee Land, meanwhile, had seen its book value soar from S$248 million to S$2.82 billion over the same period as the other two companies.

Foolish Summary

We have seen that companies with great long-term records need not come from complicated industries. The companies also do not need to diversify away from their core businesses in order to be successful.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore writer Stanley Lim does not own any companies mentioned above.