This Sacramento woman turned $1,000 into a staggering $380,000 with just 1 stock — and left the Ramsey Show stunned. Here’s the stock and how you can build investing riches too

“That is the one time I will have won the lottery in this lifetime,” she told astonished Ramsey Show co-hosts John Delony and George Kamel.

While Alice’s story is rare, it highlights how the stock market can be an engine for wealth creation if you follow some basic principles.

Focus on the product

Like Tesla and its electric vehicles, some of the best-performing stocks have delivered value to early investors thanks to product success. Apple’s stock has soared thanks to the succes of its iPhone and Nvidia’s AI chips have been highly profitable.

Understanding and evaluating a product’s potential is key to successful investing.

Riches in niches

When Alice purchased Tesla stock in 2011, the electric vehicle market was limited to enthusiasts and early adopters. Only 0.2 percent of total car sales were electric that year, according to the Bureau of Labor Statistics. Given that data, it’s not surprising that Tesla stock was overlooked and relatively undervalued at the time.

Investors looking for hyper-growth investment opportunities should keep an eye on niche segments of the economy that other investors are neglecting.

Time horizon matters

Assuming she purchased Tesla shares at $2 each in 2011, Alice saw a 1,000% return by 2017. If she had sold the stock after holding it for six years, it would have been considered a sound investment decision. However, having the discipline to keep it for 14 years, despite the volatility, turned out to be an even better decision.

It’s also a rare one. In the past 50 years, the average time investors hold individual stocks has plummeted from 5 years to just 10 months, according to eToro’s Ben Laidler.

Resisting the urge to buy and sell stocks frequently allows you to fully enjoy the power of compounding. As Warren Buffett once told his shareholders:

“If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes.”