The 20 Best-Performing Stocks of the Last Decade
Hindsight is 20/20. It can be incredibly difficult to pick the “next big stock” in the moment, but looking back gives us clarity on where we could have reaped the highest rewards. While some of the decade’s chart-toppers—like Netflix and Amazon—are household names, other stocks may come as a surprise.
Today’s visualization reveals the best-performing stocks over the last 10 years, and shows how much an initial $100 investment would be worth today.
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.
So, which stocks come out on top? Here’s a full list of the top 20, organized by ranking:
|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||Health Care|
|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||Health Care|
|7||United Rentals Inc.||NYSE: URI||$1,534||Industrials|
|8||Regeneron Pharmaceuticals Inc.||NASDAQ: REGN||$1,530||Health Care|
|9||Ulta Beauty Inc.||NASDAQ: ULTA||$1,333||Consumer Discretionary|
|10||Amazon.com Inc.||NASDAQ: AMZN||$1,309||Consumer Discretionary|
|11||Extra Space Storage Inc.||NYSE: EXR||$1,266||Real Estate|
|12||Constellation Brands Inc. Class A||NYSE: STZ||$1,224||Consumer Staples|
|13||Nvidia Corp.||NASDAQ: NVDA||$1,217||Information Technology|
|14||Take-Two Interactive Software Inc.||NASDAQ: TTWO||$1,214||Information Technology|
|15||Ross Stores Inc.||NASDAQ: ROST||$1,181||Consumer Discretionary|
|16||Fortinet Inc.||NASDAQ: FTNT||$1,179||Information Technology|
|17||Mastercard Inc. Class A||NYSE: MA||$1,178||Information Technology|
|18||Charter Communications Inc. Class A||NASDAQ: CHTR||$1,177||Communication Services|
|19||O'Reilly Automotive Inc.||NASDAQ: ORLY||$1,160||Consumer Discretionary|
|20||Cintas Corp.||NASDAQ: CTAS||$1,153||Industrials|
Note: The final value of a $100 investment is based on the total return, with reinvested dividends, from December 31, 2009 – December 5, 2019.
In comparison, $100 in the S&P 500 index overall would have amounted to $344 over the same time period. Let’s take a closer look at these strong performers.
Streaming giant Netflix takes the #1 spot. The company earned a staggering 3,767% return over the last ten years, meaning an initial $100 investment would now be worth almost $4,000. However, it remains to be seen whether Netflix’s first mover advantage will remain strong with new competitors entering the space.
One such rival, Amazon, takes its spot at #10 in the best-performing stocks of the decade. From its humble roots as an online bookseller, the company has transformed into an ecommerce leader. CEO Jeff Bezos credits Amazon’s admirable success to three key customer-centric factors: listen, invent, and personalize.
At #12 on the list, Constellation Brands—owner of several alcohol brands such as Corona—is also no stranger to invention. The company is protecting itself against cannabidiol (CBD) disruption with a $5 billion dollar investment in Canopy Growth, and future plans to create its own CBD-infused beverages.
Other well-known names on the top 20 list include discount department store chain Ross Stores (#15) and the credit card company Mastercard (#17), with the latter benefiting from an oligopoly in the industry.
Flying Under the Radar
Apart from the names you’d expect to see, there are also some lesser-known companies that made the list.
Well established among institutional investors and broker-dealers, MarketAxess Holdings takes the #2 spot. The fintech company operates a global electronic bond trading platform, vastly improving the process for investors who traditionally traded bonds “over-the-counter”.
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.
A Sector View
If we organize the top 20 by sector, information technology stocks appear in the list most frequently with five companies, followed by consumer discretionary (4 companies), and industrials and healthcare (3 companies each).
Sectors with less representation in the top 20 are communication services (2 companies), as well as consumer staples, financials, and real estate (1 company each).
The Bottom Line
While these stocks have performed extremely well over the last decade, they are not necessarily the best portfolio additions today. Some companies may have become overvalued, or be facing new competition in their industry—as is the case with Netflix. It’s best to consider all current information when building a portfolio.
However, the top 20 stocks do demonstrate the power of a buy-and-hold strategy. If you’re lucky enough to identify a winner early on, it’s possible to simply sit back and let your dollars grow.
All of the World’s Money and Markets in One Visualization
Our most famous visualization, updated for 2020 to show all global debt, wealth, money, and assets in one massive and mind-bending chart.
All of the World’s Money and Markets in One Visualization
In the current economic circumstances, there are some pretty large numbers being thrown around by both governments and the financial media.
The U.S. budget deficit this year, for example, is projected to hit $3.8 trillion, which would be more than double the previous record set during the financial crisis ($1.41 trillion in FY2009). Meanwhile, the Fed has announced “open-ended” asset-buying programs to support the economy, which will add even more to its current $7 trillion balance sheet.
Given the scale of these new numbers—how can we relate them back to the more conventional numbers and figures that we may be more familiar with?
Introducing the $100 Billion Square
In the above data visualization, we even the playing field by using a common denominator to put the world’s money and markets all on the same scale and canvas.
Each black square on the chart is worth $100 billion, and is not a number to be trifled with:
In fact, the entire annual GDP of Cuba could fit in one square ($97 billion), and the Greek economy would be roughly two squares ($203 billion).
Alternatively, if you’re contrasting this unit to numbers found within Corporate America, there are useful comparisons there as well. For example, the annual revenues of Wells Fargo ($103.9 billion) would just exceed one square, while Facebook’s would squeeze in with room to spare ($70.7 billion).
Billions, Trillions, or Quadrillions?
Here’s our full list, which sums up all of the world’s money and markets, from the smallest to the biggest, along with sources used:
|Category||Value ($ Billions, USD)||Source|
|Silver||$44||World Silver Survey 2019|
|Global Military Spending||$1,782||World Bank|
|U.S. Federal Deficit (FY 2020)||$3,800||U.S. CBO (Projected, as of April 2020)|
|Coins & Bank Notes||$6,662||BIS|
|Fed's Balance Sheet||$7,037||U.S. Federal Reserve|
|The World's Billionaires||$8,000||Forbes|
|Gold||$10,891||World Gold Council (2020)|
|The Fortune 500||$22,600||Fortune 500 (2019 list)|
|Stock Markets||$89,475||WFE (April 2020)|
|Narrow Money Supply||$35,183||CIA Factbook|
|Broad Money Supply||$95,698||CIA Factbook|
|Global Debt||$252,600||IIF Debt Monitor|
|Global Real Estate||$280,600||Savills Global Research (2018 est.)|
|Global Wealth||$360,603||Credit Suisse|
|Derivatives (Market Value)||$11,600||BIS (Dec 2019)|
|Derivatives (Notional Value)||$558,500||BIS (Dec 2019)|
|Derivatives (Notional Value - High end)||$1,000,000||Various sources (Unofficial)|
Derivatives top the list, estimated at $1 quadrillion or more in notional value according to a variety of unofficial sources.
However, it’s worth mentioning that because of their non-tangible nature, the value of financial derivatives are measured in two very different ways. Notional value represents the position or obligation of the contract (i.e. a call to buy 100 shares at the price of $50 per share), while gross market value measures the price of the derivative security itself (i.e. $1.00 per call option, multiplied by 100 shares).
It’s a subtle difference that manifests itself in a big way numerically.
Correction: Graphic updated to reflect the average value of an NBA team.
Charting the Rise and Fall of the Global Luxury Goods Market
This infographic charts the rise and fall of the $308 billion global personal luxury market, and explores what the coming year holds for its growth
The Rise and Fall of the Global Luxury Goods Market
Global demand for personal luxury goods has been steadily increasing for decades, resulting in an industry worth $308 billion in 2019.
However, the insatiable desire for consumers to own nice things was suddenly interrupted by the coming of COVID-19, and experts are predicting a brutal contraction of up to one-third of the current luxury good market size this year.
Will the industry bounce back? Or will it return as something noticeably different?
A Once Promising Trajectory
The global luxury goods market—which includes beauty, apparel, and accessories—has compounded at a 6% pace since the 1990s.
Recent years of growth in the personal luxury goods market can be mostly attributed to Chinese consumers. This geographic market accounted for 90% of total sales growth in 2019, followed by the Europe and the Americas.
Analysts suggest that China’s younger luxury goods consumers in particular have significant spending power, with an average spend of $6,000 (¥41,000) per person in pre-COVID times.
An Industry Now in Distress
The lethal combination of reduced foot traffic and decreased consumer spending in the first quarter of 2020 has brought the retail industry to its knees.
In fact, more than 80% of fashion and luxury players will experience financial distress as a result of extended store closures.
With iconic luxury retailers such as Neiman Marcus filing for bankruptcy, the pressure on the luxury industry is clear. It should be noted however, that companies who were experiencing distress before the COVID-19 outbreak will be the hardest hit.
Predicting the Collapse
In a recent report, Bain & Company estimated a 25% to 30% global luxury market contraction for the first quarter of 2020 based on several economic variables. They have also modeled three scenarios to predict the performance for the remainder of 2020.
- Optimistic scenario: A limited market contraction of 15% to 18%, assuming increased consumer demand for the second and third quarter of the year, roughly equating to a sales decline of $46 billion to $56 billion.
- Intermediate scenario: A moderate market contraction of between 22% and 25%, or $68 to $77 billion.
- Worst-case scenario: A steep contraction of between 30% and 35%, equating to $92 billion to $108 billion. This assumes a longer period of sales decline.
Although there are signs of recovery in China, the industry is not expected to fully return to 2019 levels until 2022 at the earliest. By that stage, the industry could have transformed entirely.
Changing Consumer Mindsets
Since the beginning of the pandemic, one-quarter of of consumers have delayed purchasing luxury items. In fact, a portion of those who have delayed purchasing luxury goods are now considering entirely new avenues, such as seeking out cheaper alternatives.
However, most people surveyed claim that they will postpone buying luxury items until they can get a better deal on price.
This frugal mindset could spark an interesting behavioral shift, and set the stage for a new category to emerge from the ashes—the second-hand luxury market.
Numerous sources claim that pre-owned luxury could in fact overtake the traditional luxury market, and the pandemic economy could very well be a tipping point.
The Future of Luxury
Medium-term market growth could be driven by a number of factors, from a global growing middle class and their demand for luxury products, as well as retailers’ sudden shift to e-commerce.
While analysts can only rely on predictions to determine the future of personal luxury, it is clear that the industry is at a crossroads.
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