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 0.74%), 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 1.12%).
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 1.87%), 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 -0.44%), 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 -0.87%), 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.
FAQs
See the 10 stocks
The Motley Fool has positions in and recommends Alphabet, Amazon, Chewy, Fiverr International, Fortinet, Nvidia, PayPal, Salesforce, and Uber Technologies.
What is the best performing stock since 1980? ›
5 Stocks That Have Gained More Than 100,000% Since 1980
- 5 Stocks That Have Gained More Than 100,000% Since 1980.
- Amazon -- 127,000% gains. ...
- Microsoft -- 111,000% gains. ...
- Berkshire Hathaway -- 119,000% gains. ...
- Eaton Vance Corp. ...
- Hasbro, Inc.
Stock market returns since 1980
This is a return on investment of 14,105.09%, or 11.85% per year. This lump-sum investment beats inflation during this period for an inflation-adjusted return of about 3,647.61% cumulatively, or 8.53% per year.
What is the 20 year return of the S&P 500? ›
The historical average yearly return of the S&P 500 is 9.74% over the last 20 years, as of the end of February 2024. This assumes dividends are reinvested. Adjusted for inflation, the 20-year average stock market return (including dividends) is 6.96%.
What are the Motley Fools top stocks? ›
See the 10 stocks »
The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Apple, Berkshire Hathaway, CrowdStrike, Microsoft, Nvidia, and Tesla.
What is the most successful stock of all time? ›
The Best Performing Stocks in History
- Coca-Cola. (NASDAQ: KO) ...
- Altria. (NASDAQ: MO) ...
- Amazon.com. (NASDAQ: AMZN) ...
- Celgene. (NASDAQ: CELG) ...
- Apple. (NASDAQ: AAPL) ...
- Alphabet. (NASDAQ:GOOG) ...
- Gilead Sciences. (NASDAQ: GILD) ...
- Microsoft. (NASDAQ: MSFT)
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% |
The best-performing stock of the past three decades is not one of the tech titans you'd assume. It's actually an energy drink company: Monster Beverage . Monster's stock has climbed for decades, along with sales, which have grown consistently for 31 years straight.
What is the best-performing stock of the last 50 years? ›
| ASSET | DATE | % RETURN |
|---|
| Walmart (WMT) | 5/10/1974 - 5/10/2024 | 1,024,306.78% |
| Microsoft (MSFT) | 5/10/1974 - 5/10/2024 | 752,308.76% |
| Hasbro (HAS) | 5/10/1974 - 5/10/2024 | 744,046.34% |
| UnitedHealth (UNH) | 5/10/1974 - 5/10/2024 | 457,921.68% |
21 more rowsIn 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.
The S&P 500 returned 345% over the last two decades, compounding at 7.7% annually. But with dividends reinvested, the S&P 500 delivered a total return of 546% over the same period, compounding at 9.8% annually. Investors can get direct, inexpensive exposure to the index with a fund like the Vanguard S&P 500 ETF.
What if I invested $100 in the S&P 500 in 1990? ›
S&P 500: $100 in 1990 → $3,058.10 in 2024
This lump-sum investment beats inflation during this period for an inflation-adjusted return of about 1,179.71% cumulatively, or 7.73% per year. If you used dollar-cost averaging (monthly) instead of a lump-sum investment, you'd have $2,842.89.
Does money double every 7 years? ›
For example, the Rule of 72 states that $1 invested at an annual fixed interest rate of 10% would take 7.2 years ((72 ÷ 10) = 7.2) to grow to $2. In reality, a 10% investment will take 7.3 years to double (1.107.3 = 2).
What is the 30 year return of the S&P 500? ›
5-year, 10-year, 20-year and 30-year S&P 500 returns
| Period (start-of-year to end-of-2023) | Average annual S&P 500 return |
|---|
| 15 years (2009-2023) | 12.63% |
| 20 years (2004-2023) | 9.00% |
| 25 years (1999-2023) | 7.18% |
| 30 years (1994-2023) | 9.67% |
2 more rowsMay 3, 2024
If you invested $100 in the S&P 500 at the beginning of 1950, you would have about $308,558.66 at the end of 2024, assuming you reinvested all dividends. This is a return on investment of 308,458.66%, or 11.43% per year.
What are Barron's 10 stocks for 2024? ›
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 stock will boom in 2024? ›
10 Best Growth Stocks to Buy for 2024
| Stock | Implied upside from April 25 close* |
|---|
| Tesla Inc. (TSLA) | 23.4% |
| Mastercard Inc. (MA) | 19% |
| Salesforce Inc. (CRM) | 20.8% |
| Advanced Micro Devices Inc. (AMD) | 30.1% |
6 more rowsApr 26, 2024
2024's 10 Best-Performing Stocks
| Stock | 2024 Return Through April 30 |
|---|
| Trump Media & Technology Group Corp. (DJT) | 185.3% |
| Canopy Growth Corp. (CGC) | 191.2% |
| Super Micro Computer Inc. (SMCI) | 202.1% |
| Alpine Immune Sciences Inc. (ALPN) | 238.9% |
6 more rowsMay 3, 2024
We regularly see similar ads from the Motley Fool about “all in” buy alerts, sometimes also called “double down” or “five star” buys, and they're generally just the type of steady teaser pitch that they can send out all year, over and over with no updates, to recruit subscribers for their flagship Motley Fool Stock ...
