If You Invested $50K In This Hardware Company 10 Years Ago, You Would Be a Millionaire Today

By Lee Jackson Published Mar 15, 1:15PM EDT

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If You Invested $50K In This Hardware Company 10 Years Ago, You Would Be a Millionaire Today — © Lemonsoup14 / Shutterstock.com

For years, 24/7 Wall St. has covered stocks under $10. While not all were home runs, many savvy investors with foresight and patience made millions on stocks that traded in the single digits. We found a company that had traded in the single digits for years and has exploded higher since 2020.

Typically, when modern-day investors think of hardware, servers, computers, and tech items of the same ilk, they usually come to mind. For older investors, hardware can mean something different, like a hardware store selling everything from sprinklers to tools to paint to a million other do-it-yourself items.

Many investors don’t realize that a long-term (say, ten years) investment in retail and commercial outlets can turn a sizable investment into a huge win, especially if that outfit becomes an exponential leader in construction in a booming part of the country.

That happened to savvy investors who invested $50,000 in Builders First Source Inc. (NASDAQ: BLDR) in 2014. The company and its subsidiaries manufacture and supply building materials, manufactured components, and construction services to professional homebuilders, sub-contractors, remodelers, and consumers in the United States.

The shares traded under the $10 level for years

Builders FirstSource is the nation’s largest supplier of structural building products.

From 2008 to 2015, the stock stayed below $10, and only in 2016 did it burst through $20.

Based in Texas, the company was in the right place

Builders FirstSource merged with BMC Stock Holdings in January 2021.

Located in the Dallas suburb of Irving, Texas, the stock exploded higher in 2020 as corporations and citizens looking for better tax treatment and opportunity poured into the Lone Star State, building on a trend that started in the 1990s.

Builders First Source consolidates the building supply business

Builders FirstSource and BMC Stock Holdings united the third-and fifth-largest dealers on the ProSales 100 list.

Supplying items such as roof trusses, kitchen cabinets and countertops, and much more, the company became one of the top go-to leaders in the Texas construction arena.

The stock explodes higher starting in 2021

The Company repurchased $1.8 billion of shares in 2023, reducing its total shares outstanding by 12.2% in 2023.

Trading at $40 in the summer of 2021, the shares toppled the $80 mark by the end of that year

After trading sideways for a year, the stocks parabolic move began in 2023

Builders FirstSource had revenue of $17.10 billion in the twelve months ending December 31, 2023.

From the beginning of 2023, the shares went into overdrive, and amazingly, according to the Wall Street Journal, only Nvidia Inc. (NASDAQ: NVDA | NVDA Price Prediction) and Meta Platforms Inc. (NASDAQ: META) outgained the stock’s stunning 142% gain over the last year.

Please show me the money

Builders FirstSource’s market capitalization as of March 04, 2024, is $24.49 billion.

The stock traded between $8.05 in January 2014 and $6.98 in December 2014. So, let’s say an investor bought $50,000 worth at an average price of $7.50. That would equal $6,667 shares.

If that savvy investor sold all of the shares today at $210.50 (the current trading price as of this writing), it would equal a remarkable $1,403,404. Subtracting initial $50,000 purchase price would be an incredible long-term capital gain of $1,353,404.

About the Author Lee Jackson →

Lee Jackson has covered Wall Street analysts' equity and debt research and equity strategy daily for 24/7 Wall St. since 2012. His broad and diverse career, which included a stint as the creative services director at the NBC affiliate in Austin, Texas, gives him unique insight into the financial industry and world.

Lee Jackson's journey in the financial industry spans over 30 years, with nearly two decades as an institutional equity salesperson at Bear Stearns, Lehman Brothers, and Morgan Stanley. His career was marked by his presence on the sell side during pivotal Wall Street events, from the dot.com rise and bubble to the Long Term Capital Management debacle, 9/11, and the Great Recession of 2008. This is a testament to his resilience and adaptability in the face of market volatility.

Lee Jackson’s practical financial industry experience, acquired from a career at some of the biggest banks and brokerage firms, is complemented by a lifetime of writing on various platforms. This unique combination allows him to shed light on the intricacies and workings of Wall Street in a way that only someone with deep insider experience and knowledge can. Moreover, his extensive network across Wall Street continues to provide direct access for him and 24/7 Wall St., a privilege few firms enjoy.

Since 2012, Jackson’s work for 24/7 Wall St. has been featured in Barron’s, Yahoo Finance, MarketWatch, Business Insider, TradingView, Real Money, The Street, Seeking Alpha, Benzinga, and other media outlets. He attended the prestigious Cranbrook Schools in Bloomfield Hills, Michigan, and has a degree in broadcasting from the Specs Howard School of Media Arts.