• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
Roots of Wealth

Roots of Wealth

Roots of Wealth Blog with Dan and Maureen Crimmins

  • Home
  • About
  • Events
  • Firm Website
  • Free Guide
  • Videos
  • (201) 785-7660
  • Email

Welcome to Roots of Wealth. A financial blog focusing on life, planning, and interesting information worthy of sharing with you.
Roots of Wealth is proudly managed by Crimmins Wealth Management Located in Ramsey, NJ.
Visit Our Website

Top 10 Stocks Over the Last Decade

July 22, 2020 by Dan Crimmins Leave a Comment

Let’s go back to the year 2009.  In January, Barack Obama was sworn as the 44th President of the United States. In April, three Somali pirates are killed freeing Captain Philips and ending a multi-day standoff between the United States Navy and the pirates.  Later the event is made into a movie.  In November, the New York Yankees defeat the Philadelphia Phillies to win their 27th baseball World championship (their last one).

So if you could go back to invest money in any large U.S. company stock (a piece of ownership in the company) in December 2009, what would you have invested in?  As in, what was the top performing U.S. S&P 500 stock over the last decade? (Specifically, from December 31, 2009 until December 5, 2019)

Please answer in the form of a jeopardy question…..

Would you have guessed that it was Netflix Inc.?

I am sure some of you did.  With the quarantine in place, the well-known company became a household name.  The stock earned an annualized 44.12% during the 10 years ending in December 2019.  Thus, a $100 invested in the stock in would have been worth $3,867.

However, after the first spot, the company names get harder.  Well-known in the financial industry, MarketAxess Holdings came in second place earning an annualized return of approximately 41%.  This fintech company operates a global electronic bond trading platform, vastly improving the process for investors who traditionally traded bonds “over-the-counter”.

Have A Wealth Management Question? Click Here To Ask Dan

I would venture to guess that no one would have been able to name the rest of the spots until number 10 – Amazon.  The type of industries that the companies operate in also dealt in 6 different sectors.

In third place, healthcare technology company Abiomed develops medical devices that provide circulatory support. The company’s Impella® device—the world’s smallest heart pump— has been used to treat over 50,000 U.S. patients.

Fourth place company TransDigm Group gains its stronghold by developing specialized products for the aerospace industry. It has a strong acquisition strategy as well, having acquired over 60 businesses since its formation in 1993.

Ulta Beauty photo

Below is the rest of the Top 10 list with the Final Value of the $100 investment, and the industry sectors.

Rank Company Ticker Final Value         of $100                Investment S&P 500 Sector
1 Netflix Inc. NASDAQ: NFLX $3,867 Communication Services
2 MarketAxess Holdings Inc. NASDAQ: MKTX $3,282 Financials
3 Abiomed Inc. NASDAQ: ABMD $2,221 Healthcare
4 TransDigm Group Inc. NYSE: TDG $2,165 Industrials
5 Broadcom Inc. NASDAQ: AVGO $2,019 Information Technology
6 Align Technology Inc. NASDAQ: ALGN $1,558 Healthcare
7 United Rentals Inc. NYSE: URI $1,534 Industrials
8 Regeneron                     Pharmaceuticals Inc. NASDAQ: REGN $1,530 Healthcare
9 Ulta Beauty Inc. NASDAQ: ULTA $1,333 Consumer Discretionary
10 Amazon.com Inc. NASDAQ: AMZN $1,309 Consumer Discretionary

Take Away:

While these stocks have performed extremely well over the last decade, they are not likely to perform at the top again. Some companies may have become overvalued, or be facing new competition in their industry—as is the case with Netflix.  Many large entertainment firms such as ViacomCBS and Disney are aggressively investing in this space.

The key to capture the next decades “market out-performers” is to diversify in the entire available trading universe.  Once this is accomplished, you need to have a strategy of buy-and-hold to capture the long-term returns. If you’re lucky enough to identify a winner early on, it’s possible to simply sit back and let your dollars grow.

What companies will emerge in the 2020’s and be on the Top Ten list?  I do not know, but I do know that we already own the company stock in our clients’ portfolios.

Hope you have a great week!

If you know of anyone that you think would appreciate this post, please don’t hesitate to forward it on.

List Criteria:  To compile the list, MarketWatch reviewed the current S&P 500 constituents and excluded any stocks that have traded in their present form for less than 10 years. The remaining companies were sorted based on their total return, with reinvested dividends, from December 31, 2009 to December 5, 2019.

Source:  https://www.visualcapitalist.com/best-performing-stocks-decade/

Share this:

  • LinkedIn
  • Twitter
  • Buffer
  • Email
  • Print
The foregoing content reflects the opinions of Crimmins Wealth Management and is subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that the statements, opinions or forecasts provided herein will prove to be correct. Past performance may not be indicative of future results. All investing involves risk, including the potential for loss of principal. There is no guarantee that any investment plan or strategy will be successful.

About Dan Crimmins

Dan Crimmins, co-founder of Crimmins Wealth Management, is a financial coach and fee only financial planner. Have a financial question? ASK DAN

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Join Our Newsletter
Top Financial Advisor Blogs And Bloggers – Rankings From Nerd’s Eye View | Kitces.com

Topics

Footer

1000D Lake Street
Ramsey, NJ 07446

Phone: (201) 785- 7660
Email: dan@crimminswm.com
or maureen@crimminswm.com

  • Home
  • About
  • Events
  • Firm Website
  • Free Guide
  • Videos
  • (201) 785-7660
  • Email

Important Consumer Disclosure from Crimmins Wealth Management

Copyright © 2021 Roots of Wealth | Site Design by 3200 Creative

loading Cancel
Post was not sent - check your email addresses!
Email check failed, please try again
Sorry, your blog cannot share posts by email.