Yahoo Finance You’d have $252K if you’d bought $10K of these shares five years ago
It’s been a strange five years for the ASX. Australia’s major banks have seen middling performance while milk formula companies have taken off.
In fact, if you’d bough $10,000 worth of A2 Milk shares (A2M.AX) at $0.56 when the firm started trading in April 2015, your shares would now be worth $252,321 at time of writing.
And if you’d bought the same amount of fellow milk brand, Bellamy’s Australia (BAL.AX) (which was listed in August 2004), at $1.28 in August that year, then you’d have $74,921.88 today.
Both of these shares saw considerable gains after China decided to abandon its one-child policy, but Bellamy’s shuddered lower in 2016 with the Chinese government’s announcement of pending regulatory changes.
Both of these incidents occurred after the Chinese milk formula scandal which saw manufacturers lie to consumers about dangerous levels of chemicals in the product. Six children died and thousands were ill, while two Chinese nationals were executed for their part in the scandal.
The aftermath triggered a massive black market for Australian milk formula products which continue to be considered superior to domestically manufactured products.
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