Here are the 10 top stocks since 1992.
Trying to pick which stocks will perform best over a given day or week can be fun and exciting. However, most investors aren’t short-term traders and market speculators. Instead, the majority of U.S. investors are trying to cultivate a nest egg that will grow over the long term and potentially boost their quality of life in retirement. In February 2022, Compound Capital Advisors compiled a list of the 10 best-performing stocks in the market over the past 30 years. These stocks can provide some insight for investors looking to identify the top stocks to own for the next 30 years.
Monster Beverage Corp. (ticker: MNST)
Monster Beverage has been an under-the-radar home run investment since its August 1995 initial public offering. In 27 years, Monster has generated a total return of 260,061%, making it the best-performing S&P 500 stock of the past three decades. In 2015, Monster struck a deal with Coca-Cola Co. (KO) in which Coca-Cola took a 19% ownership stake in Monster in return for Coca-Cola becoming Monster’s primary global distributor. Since its IPO, Monster shares have generated an average annual return of 34.6%. A $10,000 stake in MNST stock in 1995 would now be worth more than $26 million.
Amazon.com Inc. (AMZN)
Perhaps the least surprising stock on this list is e-commerce and cloud services leader Amazon. Amazon went public in May 1997. Since that time, the company and its stock have gone on a historic run. Over the years, Amazon has pivoted from a niche online bookstore to a $1.6 trillion online marketplace juggernaut. In the roughly 25 years since its IPO, Amazon has generated a total return of 199,332%, more than any other tech stock in the past 30 years. In fact, $10,000 invested in AMZN stock in 1997 would now be worth $19.9 million.
Pool Corp. (POOL)
Pool is the world’s largest wholesale distributor of swimming pool supplies and equipment, as well as related outdoor living and irrigation products. The company went public in 1993 and has generated a total return of 69,752%, an average annual gain of 28.2% over 29 years. Unlike other stocks that have slowed down in recent years, POOL has stayed hot. In the past five years, POOL has generated a total return of 207.9%, nearly three times the 71.7% total return of the S&P 500 during that stretch. A $10,000 investment in POOL stock back in 1993 would now be worth $6.9 million.
Nvidia Corp. (NVDA)
Nvidia is a semiconductor stock that produces high-end graphics processors for personal computers, smartphones and other applications. Nvidia first went public back in January 1999. Despite cyclical ups and downs in the semiconductor industry in recent years, Nvidia shares have gained 67,231% overall in the past three decades, a 32.6% average annual return. Today, Nvidia’s revenue growth is still going strong. The stock is down 50.6% in 2022, but Nvidia’s revenue was up 46.4% in the first quarter. A $10,000 investment in NVDA stock back in 1999 would now be worth $6.7 million.
NVR Inc. (NVR)
NVR is one of the largest U.S. homebuilders. It constructs and sells condominiums, townhouses and single-family and luxury homes under three brands: Ryan Homes, NVHomes and Heartland Homes. NVR went public back in November 1993 and has generated a 52,515% return over the past 29 years. Since 1993, NVR has generated an average annual return of 23.2% for investors. Unfortunately, NVR’s growth has slowed, and the stock is up just 22.7% overall in the past three years. Still, $10,000 invested in NVR stock 29 years ago would now be worth $5.2 million.
Johnson Controls International PLC (JCI)
Johnson Controls is an industrial building products producer that specializes in intelligent buildings, efficient energy systems, integrated infrastructure and next-generation transport systems. Johnson Controls went public way back in October 1965 and has generated a cumulative return of 50,728% for investors in the past 30 years. The company’s IPO was more than 56 years ago, making it the oldest public company among these 10 top performers. The stock has understandably slowed down in the past decade, generating an 81.1% total return. A $10,000 investment in JCI stock in 1992 would now be worth about $5.1 million.
Altria Group Inc. (MO)
Global tobacco giant Altria may be a surprise top market performer of the past 30 years. Altria first went public back in July 1985. Despite major public relations and regulatory pressures on the tobacco industry in recent years, Altria shares have gained 46,463% overall in the past three decades, a 22.7% average annual return. Today, Altria’s revenue growth has slowed to a crawl. The stock is down 10.8% in 2022, but Altria still pays a sizable 8.5% dividend. A $10,000 investment in MO stock back in 1992 would now be worth $4.6 million.
Netflix Inc. (NFLX)
Shares of streaming video giant Netflix have taken a big hit in 2022, but there’s no question Netflix has been one of the best growth stocks in the market since its May 2002 IPO. When Netflix went public, it was sending DVDs to its customers through the mail. Today, Netflix has about 222 million paying households on its subscriber list and is one of the world’s largest media companies. Since 2002, Netflix has generated a total return of 39,581%, or about 35.4% annually. A $10,000 investment in NFLX stock just 20 years ago would now be worth $3.9 million.
Apple Inc. (AAPL)
Like Amazon, iPhone maker Apple is certainly no surprise on the list of top-performing stocks. Apple has been one of the most innovative technology companies of all time, and its transition from hardware sales to services revenue in recent years demonstrates the company’s ongoing commitment to adaptivity. Apple went public back in December 1980. In the past 30 years, the stock has generated a total return of 36,830%, or about 21.8% annually. Despite a disappointing year-to-date performance in 2022, a $10,000 investment in AAPL stock back in 1992 would now be worth $3.6 million.
Microchip Technology Inc. (MCHP)
Microchip Technology produces microcontrollers, analog semiconductors and other semiconductor products. Microchip was founded way back in 1987 and went public in March 1993. The stock’s outperformance is certainly no surprise given how semiconductor demand has boomed in Microchip’s end markets, such as data centers and the aerospace and defense industry. In the past 30 years, Microchip’s shares have generated a total return of 36,686%, or about 22.7% annually. Microchip shares are up just 25.1% overall in the past five years. Still, a $10,000 investment in MCHP stock back in 1993 would now be worth $3.6 million.
10 best-performing stocks of the past 30 years:
— Monster Beverage Corp. (MNST)
— Amazon.com Inc. (AMZN)
— Pool Corp. (POOL)
— Nvidia Corp. (NVDA)
— NVR Inc. (NVR)
— Johnson Controls International PLC (JCI)
— Altria Group Inc. (MO)
— Netflix Inc. (NFLX)
— Apple Inc. (AAPL)
— Microchip Technology Inc. (MCHP)
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Update 07/06/22: This story was published at an earlier date and has been updated with new information.