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 0.31%), 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 -1.29%).
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 0.47%), 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 -0.43%), 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 0.02%), 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 was the best performing stock of 1980? ›
Home Depot (HD) had the highest return in the 1980s by a US stock, returning 5,913.6%.
| ASSET | DECADE | % RETURN |
|---|
| Graham (GHC) | 1980s | 1,591.83% |
| Bridgford Foods (BRID) | 1980s | 1,575.02% |
| CVB Financial (CVBF) | 1980s | 1,542.55% |
| Ennis (EBF) | 1980s | 1,469.81% |
21 more rowsTop S&P 500 index funds in 2024
| Fund (ticker) | 5-year annual returns | Expense ratio |
|---|
| iShares Core S&P 500 ETF (IVV) | 14.5% | 0.03% |
| Schwab S&P 500 Index (SWPPX) | 14.5% | 0.02% |
| Vanguard 500 Index Fund (VFIAX) | 14.5% | 0.04% |
| Fidelity 500 index fund (FXAIX) | 14.5% | 0.015% |
4 more rowsApr 5, 2024
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 stock will make me rich 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 rowsPerformance List of Multibagger Penny Stocks for 2024
| Name | Book Value | 1 Year (%) |
|---|
| J Taparia Projects | ₹ 18.56 | 345.61% |
| Rasi Electrodes | ₹ 9.45 | 52.90% |
| 3P Land Holdings | ₹ 37.75 | 24.68% |
| SAL Steel | ₹ 4.87 | 110.65% |
6 more rows5 days ago
Microsoft (MSFT) has had the highest return between April 27, 1984 and April 27, 2024 by a US stock with a market cap of $50B+, returning 741,359.9%.
What is the best stock since 1985? ›
Microsoft (MSFT) had the highest return between 1985 and 2023 by a US stock in the S&P 500 (GSPC), returning 684,837.8%.
What is the best performing stock of the past 30 years? ›
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.
Which S&P 500 is best for long-term? ›
You can use an S&P 500 index fund for a high-conviction, long-term bet on U.S. large-cap stocks. Our recommendation for the best overall S&P 500 index fund is the Fidelity 500 Index Fund. With a 0.015% expense ratio, it's the cheapest on our list.
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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 rowsThese 2 ETFs Are Easily Beating the S&P 500 This Year. Are They Buys?
- Invesco Mid-Cap Momentum ETF. One characteristic of the S&P 500 is that big tech stocks make up a huge chunk of its value. ...
- Global X Defense Tech ETF. Sector ETFs are another way to beat the S&P 500.
It tracked a hypothetical $10,000 investment in the S&P 500 stock index made on Jan 1, 1980 through the end of 2022. If the money was left untouched, the $10,000 invested in 1980 was worth $1.26 million at the end of 2022.
Should I put all my money in the S&P 500? ›
Investing in an S&P 500 fund can instantly diversify your portfolio and is generally considered less risky. S&P 500 index funds or ETFs will track the performance of the S&P 500, which means when the S&P 500 does well, your investment will, too. (The opposite is also true, of course.)
How much would I have if I invested $10,000 in S&P 500? ›
Assuming an average annual return rate of about 10% (a typical historical average), a $10,000 investment in the S&P 500 could potentially grow to approximately $25,937 over 10 years.
What are the top 10 stocks to buy right now? ›
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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 rows- Vodafone Idea FPO allotment.
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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 ...
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.
