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 -0.20%), 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 -1.09%).
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 0.38%), 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 -1.70%), 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 -0.28%), 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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The Motley Fool has positions in and recommends Alphabet, Amazon, Chewy, Fiverr International, Fortinet, Nvidia, PayPal, Salesforce, and Uber Technologies.
What is the S&P 500 performance since 1980? ›
S&P 500: $100 in 1980 → $12,097.47 in 2023
This is a return on investment of 11,997.47%, or 11.61% per year. This lump-sum investment beats inflation during this period for an inflation-adjusted return of about 3,171.49% cumulatively, or 8.32% per year.
What is the S&P 500 return over the last 20 years? ›
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 is the best performing stock in the S&P 500? ›
Best S&P 500 stocks as of April 2024
| Company and ticker symbol | Performance in 2024 |
|---|
| Super Micro Computer (SMCI) | 255.3% |
| NVIDIA (NVDA) | 82.5% |
| Constellation Energy (CEG) | 58.1% |
| Deckers Outdoor (DECK) | 40.8% |
7 more rowsThe top 10 stocks to buy in April 2024
- CrowdStrike (CRWD -0.68%), $68 billion.
- PayPal (PYPL 0.64%), $66 billion.
- MercadoLibre (MELI -1.79%), $84 billion.
- Airbnb (ABNB 1.17%), $88 billion.
- Shopify (SHOP -2.37%), $105 billion.
- Intuitive Surgical (ISRG -0.55%), $128 billion.
- Walt Disney (DIS 0.18%), $165 billion.
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)
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.
What is the S&P 500 performance 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). Some of this success can be attributed to the dot-com boom in the late 1990s (before the bust), which resulted in high return rates for five consecutive years.
What is the 10 year return on the S&P 500? ›
Basic Info. S&P 500 10 Year Return is at 180.6%, compared to 174.1% last month and 161.9% last year. This is higher than the long term average of 114.4%.
How many years has the S&P 500 had a negative return? ›
History says the stock market could rebound in 2023
Since 1957, the S&P 500 has only fallen more sharply than 19.4% in three years: 1974, 2002, and 2008. Each of those downturns was precipitated by major economic headwinds. In 1974, gasoline shortages and double-digit inflation rates caused the S&P 500 to plunge 29.7%.
The S&P 500 (^GSPC -0.46%) has been reaching new heights, soaring by a whopping 41% from its lowest point in October 2022. This can be an exciting time for investors, many of whom have watched their portfolios plummet in value over the past several years.
What is the 3 year return of the S&P 500? ›
S&P 500 3 Year Return is at 32.26%, compared to 33.72% last month and 58.99% last year. This is higher than the long term average of 23.25%. The S&P 500 3 Year Return is the investment return received for a 3 year period, excluding dividends, when holding the S&P 500 index.
What stock will double in 2024? ›
3 Stocks That Are on Their Way to Doubling in 2024
- Celsius, Sweetgreen, and Instacart are up between 59% and 95% so far in 2024.
- Celsius may not seem cheap right now, but five years ago you could've bought it for less than what it should earn next year.
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
The Best Growth Stocks of April 2024
| Company (ticker) | 5-Year Avg. Yearly EPS Forecast |
|---|
| The Vita Coco Company, Inc (COCO) | 104.1% |
| Live Nation Entertainment, Inc. (LYV) | 80.3% |
| Full Truck Alliance Co. Ltd (YMM) | 35.9% |
| Nvidia Corporation (NVDA) | 35.0% |
6 more rowsApr 1, 2024
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| Company (ticker) | Analysts' consensus recommendation score | Analysts' consensus recommendation |
|---|
| Amazon.com (AMZN) | 1.30 | Strong Buy |
| Microsoft (MSFT) | 1.32 | Strong Buy |
| Delta Air Lines (DAL) | 1.35 | Strong Buy |
| Nvidia (NVDA) | 1.38 | Strong Buy |
15 more rowsOverview of the top long-term stocks in India as per market capitalisation
- Reliance Industries. With a market capitalisation of ₹19,91,203 crore (as on 19th February 2024), Reliance Industries Limited is the biggest stock in Indian markets. ...
- Tata Consultancy Services (TCS) ...
- HDFC Bank. ...
- ICICI Bank. ...
- Infosys.
10 of the Best Stocks to Buy for 2024
- Alphabet Inc. (ticker: GOOGL)
- Discover Financial Services (DFS)
- Walt Disney Co. (DIS)
- PDD Holdings Inc. (PDD)
- Occidental Petroleum Corp. (OXY)
- Match Group Inc. (MTCH)
- Grupo Aeroportuario del Sureste SAB de CV (ASR)
- Target Corp. (TGT)
Motley Fool Asset Management
- Top 5 stock holdings are AAPL, MSFT, AMZN, GOOG, WSO, and represent 24.83% of Motley Fool Asset Management's stock portfolio.
- Added to shares of these 10 stocks: WMT (+$13M), SWAV (+$10M), RTO (+$8.7M), CNI (+$8.1M), WAT (+$7.7M), AMT (+$7.6M), TREX (+$5.4M), MSFT, AAPL, UPS.
