In 1980, had you invested a mere $1,000 in what went on to become the top-performing stock of S&P 500, then you would be sitting on a cool $1.2 million today.
Source: The Motley Fool
If you love money, this will blow your mind.
In 1980, had you invested a mere $1,000 in what went on to become the top-performing stock of S&P 500 (^GSPC 0.70%), then you would be sitting on a cool $1.2 million today.
That equates to a total return of 120,936%.
The stock? None other than Gap (GPS 0.57%).
You read that right. According to an analysis of the "entire universe of U.S. based stocks publicly traded since 1980," M&T Bank found that the multi-branded retailer scored the top spot among all of the stocks that are currently on the S&P 500.
What's perhaps more interesting is that Gap was in exceptionally good company, as four of the top five S&P 500 components on the list were all retailers.
You can see evidence in the following graphic, which charts how much a $1,000 investment in 1980 would be worth with respect to each of these stocks today.
Coming in second is L Brands (BBWI -0.06%), the retail concern behind Victoria's Secret and Bath & Body Works, among others, with a compound annual growth rate of 22.9%. Third is TJX (TJX 1.98%), the "off-price apparel and home fashions retailer" behind T.J. Maxx and Marshalls, among others, with a CAGR of 22.8%. And in fourth place is Wal-Mart (WMT 0.83%), the world's largest retailer, with a CAGR of 21.9%.
It's also worth pointing out that all of these are, to varying extents, discount retailers that were positioned perfectly to take advantage of the Great Bull Market that got under way in 1982. And all of them have since grown alongside the American consumer. Their total returns (rounded to the nearest 1,000%) come out to be 90,000%, 88,000%, and 69,000%, respectively.
The lesson here is simple. The opportunity to invest in great companies coupled with the magical power of compounding returns can make prescient and patient investors very rich.
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What is the S&P 500 performance since 1980? ›
Stock market returns since 1980
This is a return on investment of 13,619.04%, or 11.74% per year. This lump-sum investment beats inflation during this period for an inflation-adjusted return of about 3,505.34% cumulatively, or 8.42% per year.
What is the S&P 500 performance over the past 20 years? ›
The historical average yearly return of the S&P 500 is 9.88% over the last 20 years, as of the end of April 2024. This assumes dividends are reinvested. Adjusted for inflation, the 20-year average stock market return (including dividends) is 7.13%.
What stocks have outperformed the S&P 500 over 10 years? ›
S&P tech stocks beaten the index over the past decade
This includes the heavy hitters, such as Microsoft, Apple, Nvidia, as well as many others. And over the years, focusing on that section of the S&P has been very profitable.
What are Motley Fool's top 5 growth stocks? ›
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What are Motley Fool's top 10 stocks for 2024? ›
Top growth stocks in 2024
| Company | 3-Year Sales Growth CAGR | Industry |
|---|
| Amazon (NASDAQ:AMZN) | 10% | E-commerce and cloud computing |
| Meta Platforms (NASDAQ:META) | 10% | Digital advertising |
| Salesforce.com (NYSE:CRM) | 17% | Cloud software |
| Alphabet (NASDAQ:GOOG), (NASDAQ:GOOGL) | 15% | Digital advertising |
6 more rowsAverage Market Return for the Last 30 Years
Looking at the S&P 500 for the years 1993 to mid-2023, the average stock market return for the last 30 years is 9.90% (7.22% when adjusted for inflation).
What is the 10 year return on the S&P 500? ›
Average returns
| Period | Average annualised return | Total return |
|---|
| Last year | 25.7% | 25.7% |
| Last 5 years | 14.2% | 94.5% |
| Last 10 years | 15.3% | 316.2% |
| Last 20 years | 10.6% | 651.5% |
In 1980, had you invested a mere $1,000 in what went on to become the top-performing stock of S&P 500 (^GSPC -0.74%), then you would be sitting on a cool $1.2 million today. That equates to a total return of 120,936%.
What is better than the S&P 500? ›
The S&P 500's track record is impressive, but the Vanguard Growth ETF has outperformed it. The Vanguard Growth ETF leans heavily toward tech businesses that exhibit faster revenue and earnings gains. No matter what investments you choose, it's always smart to keep a long-term mindset.
Price index
| Category | All-time highs |
|---|
| Closing | 5,321.41 | Tuesday, May 21, 2024 |
| Intraday | 5,341.88 | Thursday, May 23, 2024 |
S&P 500 3 Year Return is at 20.44%, compared to 32.26% last month and 43.16% last year. This is lower than the long term average of 23.24%.
What if I invested $1000 in S&P 500 10 years ago? ›
Over the past decade, you would have done even better, as the S&P 500 posted an average annual return of a whopping 12.68%. Here's how much your account balance would be now if you were invested over the past 10 years: $1,000 would grow to $3,300. $5,000 would grow to $16,498.
Has Warren Buffett outperformed the S&P? ›
A big cash pile protects the above-average core operations of this stellar company. Warren Buffett has an incredible track record of outperforming the S&P 500. At the start of every Berkshire Hathaway (BRK. A -0.97%) (BRK.
What is the best performing stock over the last 20 years? ›
Best performing stocks in the S&P 500 over the last 20 years
| Total 20-year return | Annualized return |
|---|
| Monster BeverageMNST | 82,942% | 39% |
| AppleAAPL | 51,052% | 37% |
| NvidiaNVDA | 32,830% | 33% |
| Intuitive SurgicalISRG | 16,569% | 29% |
7 more rowsNov 8, 2023
Our list for 2024 includes a diversified mix of familiar stocks and some surprises, once again leaning toward, but not exclusively to, the value camp: Alibaba Group Holding, Alphabet, Barrick Gold, Berkshire Hathaway, BioNTech, Chevron, Hertz Global Holdings, Madison Square Garden Sports, PepsiCo, and U-Haul Holding.
What is the perfect 10 stock? ›
The aggregated results are distilled into a single score, a simple rating on a scale of 1 to 10, letting investors know at a glance the likely course forward of any given share. A 'Perfect 10' is a clear indicator that a stock deserves a closer look, based on the data.
What are the 10 best stocks to buy right now? ›
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| Company (ticker) | Analysts' consensus recommendation score | Analysts' consensus recommendation |
|---|
| Amazon.com (AMZN) | 1.29 | Strong Buy |
| Nvidia (NVDA) | 1.33 | Strong Buy |
| Microsoft (MSFT) | 1.33 | Strong Buy |
| Bio-Techne (TECH) | 1.39 | Strong Buy |
21 more rows"Double down buy alerts" from The Motley Fool signal strong confidence in a stock, urging investors to increase their holdings.
