If you invested in Apple, Nvidia, or these 8 other stocks in 1999, you'd have over $1 million now.
You may not be familiar with many of the top 10 publicly traded companies that provided the highest 25-year total return to their investors, aside from technology giants like Nvidia and Apple.
Decker's Outdoor Corporation is a global footwear, apparel, and accessories company that you may not recognize by name, but you're likely familiar with its portfolio of brands, which includes UGG, Hoka, and Teva footwear.
In 1973, the company was established and 20 years later, in October 1993, it made its stock market debut under the "DECK" ticker symbol, priced at approximately $1 per share.
In 1999, the company's stock price rose to over $3, and if you had invested $10,000 at that time, your investment would now be worth nearly $9 million, according to CNBC's calculations.
Over the past quarter century, Nvidia's stock value has skyrocketed, making a $10,000 investment from 25 years ago worth approximately $32 million today.
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The value of a $10,000 investment made 25 years ago in the top 10 companies with the highest 25-year total return, as calculated by CNBC using the October 22 closing share price for these companies, is as follows:
1. Nvidia
- Total as of October 22: $32,003,017
2. Monster Beverage
- Total as of October 22: $11,125,621
3. Decker's Outdoor
- Total as of October 22: $8,962,901
4. Old Dominion Freight Line
- Total as of October 22: $3,893,711
5. Apple
- Total as of October 22: $3,701,395
6. Tractor Supply Co
- Total as of October 22: $2,884,374
7. NVR, Inc.
- Total as of October 22: $2,188,602
8. Fair Isaac Corporation (FICO)
- Total as of October 22: $2,067,319
9. ANSYS, Inc.
- Total as of October 22: $1,467,718
10. Tyler Technologies
- Total as of October 22: $1,378,494
Why it's still not the best idea to pick individual stocks
Most financial experts would advise against investing $100 or $10,000 in a single stock chosen by yourself.
The stock market is unstable, and any number of factors, including natural disasters or E. coli outbreaks, could cause a sudden drop in a company's stock price. Without a diversified portfolio, a downturn in one company or sector could negatively impact your overall investment performance.
A more hands-off approach often works well for individuals, as experts suggest investing in low-cost index funds that aim to replicate market indices like the S&P 500, which tracks the performance of approximately 500 large publicly traded companies.
By investing in a diversified portfolio of stocks, you can spread your money across a wide range of companies, including Nvidia, FICO, and Monster Beverage.
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