Other than tech giants like Nvidia and Apple, you may not have heard of many of the top 10 publicly traded companies that have given investors the highest total returns in 25 years.
Take Decker’s Outdoor Corporation, a global footwear, apparel, and accessories company. You may not recognize the Decker’s name, but you’re probably familiar with the company’s brand portfolio, which includes footwear from UGG, Hoka, and Teva.
The company was founded in 1973 and debuted on the stock market 20 years later in October 1993 under the “DECK” ticker symbol at a price of about $1 per share.
A few years later, on October 22, 1999, the company’s stock price rose slightly to over $3. If you invested $10,000 in the company back then, your investment would be worth nearly $9 million as of Oct. 22, according to CNBC’s calculations.
Nvidia has also experienced rapid stock price growth over the past quarter century. A $10,000 investment in Nvidia made 25 years ago is now worth just over $32 million.
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CNBC calculates how much a $10,000 investment made 25 years ago would be worth today in the top 10 companies with the highest 25-year total returns, based on these companies’ October 22 closing stock prices. did. Here are the results:
1. Nvidia
2. Monster Beverage
3. Deckers Outdoor
4. Old Dominion Freight Line
5. Apple
6. Tractor Supply Company
7. NVR Co., Ltd.
8. Fair Isaac Corporation (FICO)
9. Ansys Co., Ltd.
10. Tyler Technologies
Why picking individual stocks is still not the best bet
Whether you have $100 or $10,000 to invest, most financial experts advise against putting that money into one stock of your own choosing.
That’s because the stock market is unpredictable. Any situation, from natural disasters to E. coli outbreaks, can lead to an unexpected drop in a company’s stock price. If a portfolio is not diversified, there is a risk that if one company or sector underperforms, the performance of the entire portfolio will suffer.
Fortunately, hands-off approaches tend to work well for people. Experts usually recommend investing in low-cost index funds. These funds aim to mimic market indexes such as the S&P 500, which tracks the performance of about 500 large publicly traded companies.
This approach allows you to spread your money across a variety of stocks, including many of the companies mentioned, such as Nvidia, FICO, Monster Beverage, and more.
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