However, those figures were from over 18 months ago. Here’s what the stock market has done since then:

• FTSE All-World Index: +33%
• S&P 500: +48%
• Nasdaq: +64%
• FTSE 100 +8%
• FTSE 250: +12%

These returns don’t even include dividends. Therefore, I assume there’ll be well over 5,000 investors with a seven-figure portfolio right now. We’ll know for sure when the next set of figures is released.

Here, I’ll outline how I aim to one day join this growing ISA millionaire club by investing quite modest sums.

Active investing

My first goal is to try and max out the annual ISA allowance, which currently stands at £20,000. This works out at approximately £1,666 a month or £384 a week.

Next, I aim to beat the market by picking individual stocks (active investing). My portfolio is globally diversified, including many UK and US shares, so I think the FTSE All-World Index is a good benchmark.

It’s comprised of about 3,645 large and mid-sized company stocks in developed and emerging markets.

The average annual return of this index is around 10.3%. I’m targeting a return slightly above this over time (roughly 12%).

A potential hidden gem

One under-the-radar stock I’ve been considering for my portfolio is Novocure (NASDAQ: NVCR). This is a global oncology company that has pioneered Tumour Treating Fields (TTFields) therapy.

This involves the use of electric fields to disrupt cancer cell division, while sparing healthy cells. Its flagship product is Optune, a scalp-worn, portable device approved for an aggressive form of brain cancer.

In Q3, the firm’s revenue grew 22% year on year to $155m. However, its net loss was $30.6m, due to $51.9m in research, development, and clinical studies expenses.

Though I expect the firm to reach profitability, these losses add risk, despite it also having $960m in cash.

On 2 December, the firm announced that its TTFields therapy extended the lives of patients with a form of advanced pancreatic cancer when combined with chemotherapy.

This was Novocure’s third positive Phase 3 clinical trial in the last two years. And upon this news, the stock exploded nearly 50% higher. However, it still remains 87% below its mid-2021 record.

Novocure will probably file for regulatory approval of this new cancer product in 2025, with its Chinese partner, Zai Lab, doing likewise in China.

From today’s modest $2.9bn market cap, I think the stock could outperform long term. I’m seriously considering it.

Getting to £1m

So, I have my amount (£1,666 a month) and the average return target (12%). Now I can calculate how long it should take my ISA to reach seven figures.

Note that I haven’t included platform fees, and the figures assume I reinvest dividends to really fuel compound returns. Naturally, it’s possible I might underperform, and individual dividends aren’t guaranteed.

In the above scenario, it’ll take me just under 17 years to reach £1m. Due to the power of compounding though, it’d only take another six years of regular investing to get to £2m!

Food for thought…

The post How I could make £1 million investing in an ISA appeared first on The Motley Fool UK.

That’s a wealth-shredding 92% drop over three years!

Is this fallen star now a bargain hiding in plain sight? Or is this one to avoid? Let’s dig into the details.

What does it do?

Novocure is a medical device company specialising in a unique cancer treatment called Tumour Treating Fields (TTFields). This non-invasive therapy uses electric fields to disrupt cancer cell division, slowing the spread of tumours.

The wearable device primarily targets glioblastoma, a particularly aggressive type of brain cancer. The patches on the scalp deliver electric fields and are connected to a portable device, often carried like a backpack, allowing continuous cancer treatment while maintaining mobility.

At the end of June, there were 3,963 active patients using TTFields therapy, an 11% increase from the previous year. 

Mixed results

I was first attracted to the share a few years ago when I heard the firm’s proprietary technology being called the “fourth modality of cancer treatment” (along with surgery, chemotherapy, and radiation).

The hope was that its technology would become a standard treatment for several types of cancer. However, while Novocure has expanded its research to include non-small cell lung cancer, pancreatic cancer, and ovarian cancer, it’s had mixed results so far.

Last year, its phase 3 trial of TTFields in patients with a type of ovarian cancer failed to meet its primary endpoint. On the plus side, it announced earlier this year that its Phase 3 METIS trial, involving patients with lung cancer that had spread to the brain, did meet its primary endpoint. Final results are pending.

Looking forward, a lot will hinge on data due later this year from its phase 3 PANOVA-3 clinical trial in advanced pancreatic cancer. If that is successful, it could open up a significant growth opportunity and be a big catalyst for the stock.

Of course, there’s also a risk these results could disappoint and heap further pressure on the share price.

Sluggish growth and zero profits

The company’s revenue growth has stalled in recent years. And while brokers see a bit of growth in the next couple of years, it isn’t anything to get overly excited about.

Meanwhile, the firm reported a net loss of $207m last year. And Wall Street has a $150m loss pencilled in for each of the next two years.

That said, the company isn’t in any danger of going under. At the end of June, its cash and short-term investments totalled $951m. But the losses do add risk to the investment case here.

My move

Novocure appears close to expanding its TTFields technology to several cancer types and this could significantly increase its addressable market.

Plus, the stock is trading on a price-to-sales (P/S) ratio of around 3.5. Not obvious bargain territory perhaps, but a lot cheaper than 2021 when the P/S multiple was 14.5.

This share could be set for a big turnaround at some point. So I’m going to keep it on my watchlist while I wait for the company’s upcoming clinical trial results.

The post After a 92% share price crash, is this a bargain basement growth stock? appeared first on The Motley Fool UK.