Personally, my objective is to achieve strong, market-beating returns over the long term so I have plenty of money for retirement. Here’s a look at how I’m targeting big gains over the next decade and beyond.

Aiming for big gains

You might think that to obtain big gains in an ISA, you have to invest in highly speculative, risky small-cap stocks (eg penny stocks). But that’s not the case.

Invest in a high-quality growth business that reinvests its earnings for future growth, and hold for the long term (while the company gets bigger and bigger), and the results can be incredible. Just look at Amazon. Over the last decade, this stock has turned a $10,000 investment into around $95,000. That translates to a return of about 25% a year.

This is just one example of a high-quality stock that’s delivered big gains over the long term. There are many more (especially within the US market). Some examples include Mastercard, Intuitive Surgical, and Lam Research. All of these stocks have generated gains of around 20% or more a year over the last decade.

Now I’m not saying that all of these stocks are buys today (I think Amazon and Lam Research are worth considering). But they’re all high-quality growth businesses. They all have competitive advantages, growing profits, and strong balance sheets along with long-term growth drivers. And in the long run, investors have seen huge gains as the companies have increased in size.

My approach

So what I’m doing to target big gains is building a portfolio of these types of high-quality growth stocks. The aim is to hold them for the long term while they get bigger and bigger.

Obviously, not every stock I own is going to perform exceptionally well. But by owning 30-40 different stocks, I can give myself a good chance of landing a few long-term winners.

A stock I’ve been buying

One stock I believe has the potential to be a big winner over the next decade (and is worth considering today) is Nasdaq (NASDAQ: NDAQ). It’s the owner of the tech-focused Nasdaq stock exchange (businesses listed on the exchange pay it ongoing fees), the Nasdaq indexes, and a RegTech business called Adenza.

I see this company as well-placed for growth in our tech-focused world. Looking ahead, we’re likely to see more tech companies emerge as the world becomes more digital. Where are these firms most likely to list? The Nasdaq – home to most of the world’s biggest tech businesses.

The Nasdaq also looks well-placed to benefit from the increasing focus on data. It sells its data to banks, brokerage firms, and asset managers who use it for research and portfolio management.

Additionally, there’s plenty of potential on the RegTech side. Here, Nasdaq helps customers navigate risk management and compliance issues.

Of course, weak market conditions are a risk. They could temporarily reduce demand for the company’s services.

Taking a long-term view however, I’m bullish. It’s worth noting that over the last decade this stock’s returned almost 400%.

The post How I’m targeting monster gains in my Stocks and Shares ISA appeared first on The Twelfth Magpie.

Looking ahead to 2025, I expect this index to be a source of opportunity for investors again. With that in mind, here are three S&P 500 growth shares to consider buying for a Stocks and Shares ISA.

Amazon

Starting with a Big Tech play, I like Amazon (NASDAQ: AMZN) right now. It has done well this year (rising around 50%). However, I think the uptrend here has legs.

One reason I’m bullish is that after years of cost-cutting, Amazon is on a growth drive again. Recently, it has been rolling out some incredible artificial intelligence products designed to help customers build their own AI applications.

It has also entered the AI chip space, and recently launched its high-powered ‘Trainium 3’ product. These chips could be popular given that Nvidia’s chips are both very expensive and supply-constrained.

Now, a risk is a slowdown in consumer spending. Today, a large chunk of Amazon’s revenues still comes from online shopping.

With the price-to-earnings (P/E) ratio under 40, however, I like the risk/reward set-up. I’ve made the stock my largest holding.

KLA Corp

2024 was a mixed year for companies in the AI chip ecosystem. While Nvidia (which designs chips) did really well, a lot of companies that specialise in chip manufacturing equipment didn’t.

Given this lack of performance in the chip manufacturing equipment space, I think there could be some opportunities here for 2025. And one stock I like is KLA Corp (NASDAQ: KLAC).

This company specialises in technology that helps to ensure chip quality and production efficiency. So, the way I see it, it’s a good ‘picks-and-shovels’ play on the semiconductor industry.

That’s not the only reason I like it though. I’m also attracted to the earnings growth and the valuation. For the year ending 30 June 2025, Wall Street expects earnings growth of a high 30%. Meanwhile, the P/E ratio here right now is just 20.7, which is not high.

Now, I’ll point out that KLA generates around 20% of its revenues in China. So US export restrictions are a risk.

I believe the company will do well in the years ahead though. That’s because it plays a crucial role in the chip industry.

Nasdaq

Finally, I like the look of Nasdaq (NASDAQ: NDAQ) as we head towards 2025. It operates stock market platforms and also offers solutions in relation to data, indexing, analytics, and regulatory technology.

There are a few reasons I’m bullish here. One is that as the operator of the tech-focused Nasdaq index, it should do well as the tech industry continues to grow.

Another is that there’s a good chance that the IPO market will heat up next year. This could lead to more revenue for the company.

Finally, the stock is trending up and the valuation looks attractive. Currently, the P/E ratio is under 25.

Of course, in the short term, a meltdown in the financial markets or the tech sector could lead to share price weakness. Taking a long-term view, however, I think the shares have tons of potential.

I’ve just bought a few for my own portfolio.

The post 3 top S&P 500 growth shares to consider buying for a Stocks and Shares ISA in 2025 appeared first on The Twelfth Magpie.