The Best-Performing Stock on the S&P 500 Since 1980 | The Motley Fool (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.

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 1.02%), 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 5.59%).

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.

The Best-Performing Stock on the S&P 500 Since 1980 | The Motley Fool (2)

Coming in second is L Brands (BBWI 0.96%), 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 -0.06%), 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 -0.08%), 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.

John Maxfield and The Motley Fool have no position in any of the stocks mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

The Best-Performing Stock on the S&P 500 Since 1980 | The Motley Fool (2024)

FAQs

What 10 stocks did Motley Fool recommend? ›

The Motley Fool has positions in and recommends Alphabet, Amazon, Chewy, Fiverr International, Fortinet, Nvidia, PayPal, Salesforce, and Uber Technologies.

What is the S&P 500 performance since 1980? ›

Stock market returns since 1980

This is a return on investment of 14,105.09%, or 11.85% per year. This lump-sum investment beats inflation during this period for an inflation-adjusted return of about 3,647.61% cumulatively, or 8.53% per year.

What is the best performing stock since 1980? ›

5 Stocks That Have Gained More Than 100,000% Since 1980
  • 5 Stocks That Have Gained More Than 100,000% Since 1980. Gains that will blow your mind. ...
  • Amazon -- 127,000% gains. ...
  • Microsoft -- 111,000% gains. ...
  • Berkshire Hathaway -- 119,000% gains. ...
  • Eaton Vance Corp. ...
  • Hasbro, Inc. ...
  • This will be hard to match.
Aug 17, 2018

What is the best performing S&P 500 index fund? ›

Top S&P 500 index funds in 2024
Fund (ticker)5-year annual returnsExpense 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 rows
Apr 5, 2024

What is the most successful stock of all time? ›

The Best Performing Stocks in History
  • Coca-Cola. (NASDAQ: KO) ...
  • Altria. (NASDAQ: MO) ...
  • Amazon.com. (NASDAQ: AMZN) ...
  • Celgene. (NASDAQ: CELG) ...
  • Apple. (NASDAQ: AAPL) ...
  • Alphabet. (NASDAQ:GOOG) ...
  • Gilead Sciences. (NASDAQ: GILD) ...
  • Microsoft. (NASDAQ: MSFT)

What is Motley Fool's all in buy? ›

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 is the 20 year return of the S&P 500? ›

The historical average yearly return of the S&P 500 is 9.74% over the last 20 years, as of the end of February 2024. This assumes dividends are reinvested. Adjusted for inflation, the 20-year average stock market return (including dividends) is 6.96%.

What is the 10 year return of the S&P 500? ›

S&P 500 10 Year Return (I:SP50010Y)

S&P 500 10 Year Return is at 167.3%, compared to 180.6% last month and 161.0% last year. This is higher than the long term average of 114.6%.

What is the S&P 500 performance last 30 years? ›

Looking at the S&P 500 for the years 1993 to mid-2023, the average stock market return for the last 30 years is 9.90% (7.22% when adjusted for inflation). Some of this success can be attributed to the dot-com boom in the late 1990s (before the bust), which resulted in high return rates for five consecutive years.

What is the best-performing stock of the last 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.

What stock has the best 10 year return? ›

Best Performing Stocks Over the Last 10 Years
TickerCompany Name
1CELHCelsius Holdings
2EXPIeXp World Holdings
3NVDANvidia
4SMCISuper Micro Computer
6 more rows

What is the safest investment with the highest return? ›

Overview: Best low-risk investments in 2024
  1. High-yield savings accounts. ...
  2. Money market funds. ...
  3. Short-term certificates of deposit. ...
  4. Series I savings bonds. ...
  5. Treasury bills, notes, bonds and TIPS. ...
  6. Corporate bonds. ...
  7. Dividend-paying stocks. ...
  8. Preferred stocks.
Apr 1, 2024

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.

What are the top 5 stocks in S&P 500? ›

S&P 500 companies by weight
  • Key points. The S&P 500 index is often used as a proxy for the broader U.S. stock market. ...
  • Microsoft (MSFT) Index weight: 7.09% ...
  • Apple (AAPL) Index weight: 5.65% ...
  • Nvidia Corp. (NVDA) ...
  • Amazon.com Inc (AMZN) ...
  • Meta Platforms Class A (META) ...
  • Alphabet Class A (GOOGL) ...
  • Berkshire Hathaway Class B (BRK.B)
Apr 26, 2024

Should I invest my Roth IRA in S&P 500? ›

S&P 500 index funds

One of the best places to begin investing your Roth IRA is with a fund based on the Standard & Poor's 500 Index. It's a collection of hundreds of America's top companies, including many of the names you know and use every day (Amazon, Apple and Microsoft, for example).

What stock will boom in 2024? ›

10 Best Growth Stocks to Buy for 2024
StockImplied 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 rows
Apr 26, 2024

What are the top 10 stocks to invest in in 2024? ›

2024's 10 Best-Performing Stocks
Stock2024 Return Through April 30
Trump Media & Technology Group Corp. (DJT)185.3%
Canopy Growth Corp. (CGC)191.2%
Super Micro Computer Inc. (SMCI)202.1%
Alpine Immune Sciences Inc. (ALPN)238.9%
6 more rows
May 3, 2024

What are the top ten stocks to invest in? ›

9 best stocks to invest in for the long term
  • Alphabet.
  • Walmart.
  • Nvidia.
  • Costco.
  • Microsoft.
  • Visa.
  • Berkshire Hathaway.
  • Coca-Cola.
3 days ago

What stocks are in Motley Fool's ownership portfolio? ›

Portfolio Holdings for Motley Fool Asset Management
Company (Ticker)Portfolio WeightChange in Shares
Berkshire Hathaway Inc Cl B Ordinary Shares (BRK.B)3.6+325%
Microsoft Corp Ordinary Shares (MSFT)3.2+7%
Amazon Ordinary Shares (AMZN)3.1+4%
Apple Ordinary Shares (AAPL)2.7+7%
65 more rows

References

Top Articles
Latest Posts
Article information

Author: Virgilio Hermann JD

Last Updated:

Views: 5587

Rating: 4 / 5 (61 voted)

Reviews: 84% of readers found this page helpful

Author information

Name: Virgilio Hermann JD

Birthday: 1997-12-21

Address: 6946 Schoen Cove, Sipesshire, MO 55944

Phone: +3763365785260

Job: Accounting Engineer

Hobby: Web surfing, Rafting, Dowsing, Stand-up comedy, Ghost hunting, Swimming, Amateur radio

Introduction: My name is Virgilio Hermann JD, I am a fine, gifted, beautiful, encouraging, kind, talented, zealous person who loves writing and wants to share my knowledge and understanding with you.