While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk.
How much a stock’s price changes over time is a significant driver for most investors. Not only can the performance of price impact an investor’s portfolio, but it can also help said investor compare investment results across sectors and industries.
Over long-term horizons, the index typically produces better returns than actively managed portfolios, especially after accounting for taxes and fees. Many investors usually compare their investment returns to the S&P 500 index. Active traders or stock-picking investors are often judged against this benchmark in hindsight to evaluate how well they performed.
To get a better look at the growth of some of the stocks of the top companies in 2012, we researched historical prices to see what $1,000 invested in some of the leading companies in 2012 would be worth 10 years later, as well as what the compound annual growth rate is to give you a sense of what the yearly return for each has been over time.
Adobe Inc [ADBE] – $12,494.72
- Share price April 25, 2012: $33.13
- Share price April 25, 2022: $413.95
- Compound annual growth rate: 28.73%
Adobe Inc. is a software company. The company offers products and services used by professionals, marketers, knowledge workers, application developers, enterprises, and consumers for creating, managing, measuring, optimizing, and engaging with compelling content and experiences.
If you had invested in Adobe 10 years ago, you would make a considerable profit. Adobe Inc is one of the companies that benefited from covid-19. The work-from-home shift boosted subscription revenue for the company. The company’s momentum and product innovation have continued to be essential factors, making the company achieve record Q1 revenue.
Netflix Inc [NFLX] – $17,010.53
- Share price April 25, 2012: $12.34
- Share price April 25, 2022: $209.91
- Compound annual growth rate: 32.76%
Netflix, Inc. is an entertainment services company. The company has paid streaming memberships in over 190 countries. It allows members to watch various television (TV) series, documentaries, feature films, and mobile games across multiple genres and languages.
In terms of stock prices, the pandemic has been kind to Netflix. The company saw significant gains during 2020 and 2021 as consumers were stuck at home under various restrictions. However, a gloomy forecast for Netflix is set to erase much of the stock’s pandemic gains since Netflix lost 200,000 subscribers globally in the first quarter of 2022—and predicts it will lose another 2 million subscribers in the second quarter. In January, the company expected an uptick in about 2.5 million subscribers.
Amazon.com Inc. [AMZN] – $15,026.64
- Share price April 25, 2012: $194.42
- Share price April 25, 2022: $2,921.48
- Compound annual growth rate: 31.13%
Amazon.com is a vast Internet-based enterprise that sells books, music, movies, housewares, electronics, toys, and many other goods, either directly or as the middleman between other retailers and Amazon’s millions of customers.
The tech company, a leader in e-commerce, fared better than many companies during the covid-19 pandemic, recording record earnings as consumers embraced and accelerated a shift to online shopping.
A $1,000 investment in Amazon would have provided a substantial return for the long-term investor — with that investment essentially increasing in size by over one-third each year for a decade.
NVIDIA Corporation [NVDA] – $66,340.00
- Share price April 25, 2012: $3.00
- Share price April 25, 2022: $199.02
- Compound annual growth rate: 52.12%
NVIDIA Corp. engages in designing and manufacturing computer graphics processors, chipsets, and related multimedia software. NVIDIA is a dominant name in the Data Center, professional visualization, and gaming markets. The company’s partnerships with almost all major cloud service providers (CSPs) and server vendors are a crucial catalyst.
This company continued its strong financial performance during the coronavirus pandemic, posting record sales in the latest quarter propelled by strong demand for online gaming and remote computing services.
Demand for services offered by data centers has grown rapidly during the pandemic, boosting demand for Nvidia’s chips, making this company keep growing even in an uncertain market.
Walmart Inc [WMT] – $3,438.65
- Share price April 25, 2012: $45.67
- Share price April 25, 2022: $156.94
- Compound annual growth rate: 13.14%
Walmart Inc is a retailer that operates grocery stores, supermarkets, hypermarkets, department and discount stores, and neighborhood markets. Unlike so many retailers that were struggling to compete with Amazon even before the pandemic, Walmart has adapted well and stayed profitable.
Even now, Walmart posted robust sales gains in its U.S. businesses for its 2022 fourth quarter and fiscal year, topping Wall Street’s earnings forecast despite a revenue impact from international divestitures.
Booking Holdings Inc [BKNG] – $3,099.91
- Share price April 25, 2012: $724.55
- Share price April 25, 2022: $2,246.04
- Compound annual growth rate: 11.98%
Booking Holdings provides online travel and related services to consumers and local partners in more than 220 countries. The company offers a platform that allows users to make travel reservations with providers of travel services and provides accommodation reservations, rental cars, airline tickets, and vacation packages.
The pandemic has been unkind to the travel industry, and Booking Holdings certainly took a hit. However, the company beat estimates for the first-quarter earnings. Global travel trends pointed to a busy summer season, especially in Europe, sending its shares up about 7% in extended trade.
FedEx Corp [FDX] – $2,557.91
- Share price April 25, 2012: $80.30
- Share price April 25, 2022: $205.40
- Compound annual growth rate: 9.85%
FedEx Corp provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce, and business services.
After a decade of gains, FedEx stock prices waned in the second half of 2018, but the pandemic — and the massive increase in package deliveries it stoked — has been good for shareholders. Their stock has since soared and reports solid earnings in Q3 2022.
Mastercard Inc [MA] – $8,436.83
- Share price April 25, 2012: $42.03
- Share price April 25, 2022: $354.60
- Compound annual growth rate: 23.77%
Mastercard Inc is a technology company in the global payments business. They connect consumers, financial institutions, merchants, governments, and businesses worldwide, enabling them to use electronic forms of payment instead of cash and checks.
After taking a hit during the beginning of the pandemic, Mastercard Inc has reported first-quarter profit above Wall Street expectations and said consumers were braving stubbornly high inflation and concerns around new coronavirus variants to spend on travel. However, the company also flagged potential risks to its three-year performance objectives from 2022 to 2024 from its decision to exit Russia.
Pfizer Inc [PFE] – $3,237.43
- Share price April 25, 2012: $15.12
- Share price April 25, 2022: $48.95
- Compound annual growth rate: 12.46%
Pfizer Inc is a research-based global biopharmaceutical company. The Company is engaged in discovering, developing, manufacturing, marketing, selling, and distributing biopharmaceutical products. Its global portfolio includes medicines and vaccines.
Pfizer has taken investors on a roller-coaster ride over the last several years. Since the summer of 2019, it’s been a jagged line of steep losses that were quickly gained back before being lost again. Despite Pfizer shares hitting a record high with the development of the COVID-19 vaccine, little has changed.
The Boeing Company [BA] – $2,772.86
- Share price April 25, 2012: $63.44
- Share price April 25, 2022: $175.91
- Compound annual growth rate: 10.74%
The Boeing Company is an aerospace company that engages in manufacturing commercial jetliners and defense, space, and security systems.
2017 was a year of extraordinary growth for Boeing, and the gains lasted for about two years. Then the 737 Max scandal rattled the company before the COVID-19 crisis sent shares falling from nearly $340 to $95 in a little more than a month between February and March.
It has since recovered from this low, but not by any means. Boeing’s commercial aircraft business had a bad first quarter in 2022, and Boeing’s defense business had an even worse quarter, with sales down 23% year-over-year.
Depending on your investment choices today, your portfolio can grow and bring you plentiful returns, or it can achieve the exact opposite.
According to an American publisher of business forecasts and personal finance advice, the $75.7 trillion in net global stock market wealth created over the past 30 years was generated solely by the top-performing 2.4% of stocks.
Accurately identifying the precious few stocks amid the many thousands of underachieving companies is extremely difficult. Your portfolio is more likely to suffer because you guessed wrong and failed to invest in the market’s best stocks over the long term.
However, any investor can achieve success with the right tools, especially if hard data and AI drive them. By using tools like the ones offered by the Analytical Platform, you can reduce the uncertainty in investing and minimize human error with strategies developed to cater to the needs of new and experienced investors.
For the next 10 years, trust in data-driven analytics to beat the market even in the case of a black swan event like covid-19.