Markets
The 25 Best Stocks by Shareholder Wealth Creation (1926-2022)
The 25 Best Stocks by Shareholder Wealth Creation (1926-2022)
Out of 28,114 publicly-listed U.S. companies analyzed over the last century, the 25 best stocks have created nearly a third of all shareholder wealth. Put another way, just 0.1% of stocks have added over $17.6 trillion to investors’ wallets.
In this graphic, we use data from Henrik Bessembinder of Arizona State University to show the best stocks of the last century.
How is Shareholder Wealth Creation Calculated?
Bessembinder took three steps to measure lifetime shareholder wealth creation:
- Considered U.S. stocks in the Center for Research in Security Prices database from 1926 (or when the stock was first listed) until 2022 (or when the stock was delisted).
- Measured share price changes as well as cash flows to/from shareholders including dividends, spinoffs, share buybacks, and new share issuances.
- Calculated the excess wealth generated compared to investing in one-month Treasury bills over the same time period.
If a company exited the database during the period, Bessembinder calculated its delisting return based on any proceeds from mergers or acquisitions as well as estimates of any remaining value after delistings for negative reasons.
GM is the only company within the top 25 to be delisted prior to December 2022. Its second IPO in 2010 was considered a new company and not continuous wealth creation.
The 25 Best Stocks in Modern History
With this definition in mind, here are the best stocks since 1926.
Rank | Company | Lifetime Wealth Creation | First Month | Last Month |
---|---|---|---|---|
1 | APPLE | $2.7T | Jan‐81 | Dec‐22 |
2 | MICROSOFT | $2.1T | Apr‐86 | Dec‐22 |
3 | EXXON MOBIL | $1.2T | Jul‐26 | Dec‐22 |
4 | ALPHABET | $1.0T | Sep‐04 | Dec‐22 |
5 | AMAZON | $764B | Jun‐97 | Dec‐22 |
6 | BERKSHIRE HATHAWAY | $704B | Nov‐76 | Dec‐22 |
7 | JOHNSON & JOHNSON | $661B | Oct‐44 | Dec‐22 |
8 | WALMART | $629B | Dec‐72 | Dec‐22 |
9 | CHEVRON | $583B | Jul‐26 | Dec‐22 |
10 | PROCTER & GAMBLE | $581B | Sep‐29 | Dec‐22 |
11 | IBM | $563B | Jul‐26 | Dec‐22 |
12 | UNITEDHEALTH GROUP | $551B | Nov‐84 | Dec‐22 |
13 | ALTRIA GROUP | $490B | Jul‐26 | Dec‐22 |
14 | MERCK & CO | $478B | Jun‐46 | Dec‐22 |
15 | HOME DEPOT | $477B | Oct‐81 | Dec‐22 |
16 | COCA COLA | $474B | Jul‐26 | Dec‐22 |
17 | GENERAL ELECTRIC | $463B | Jul‐26 | Dec‐22 |
18 | JPMORGAN CHASE | $459B | Apr‐69 | Dec‐22 |
19 | GENERAL MOTORS | $454B | Jul‐26 | Jun‐09 |
20 | ELI LILLY | $418B | Aug‐70 | Dec‐22 |
21 | ORACLE | $383B | Apr‐86 | Dec‐22 |
22 | VISA | $372B | Apr‐08 | Dec‐22 |
23 | MASTERCARD | $370B | Jun‐06 | Dec‐22 |
24 | PEPSICO | $369B | Jul‐26 | Dec‐22 |
25 | PFIZER | $350B | Feb‐44 | Dec‐22 |
Apple takes the top spot, having created nearly 5% of all shareholder wealth. From the iPod to the iPhone, Apple’s ability to keep innovating has helped it gain a loyal fan base and given the company pricing power. Notably, Apple is America’s most profitable company.
ExxonMobil is the only non-technology company among the five best stocks. When Exxon and Mobil merged in 1999, it was the biggest merger in history and ExxonMobil temporarily became the world’s largest public company by market capitalization. More recently, the company experienced record profits in 2022 due to high oil prices.
The list also shows how wealth-generating patterns have changed over time. While energy and consumer staples are more frequent among older companies in the ranking, the stocks that have created massive wealth in recent years are more likely to be technology or financial companies.
Finding the Next Winners
Given that the names on this list account for 0.1% of all public U.S. stocks, picking out one of the next long-term winners could be a difficult task. In fact, 95% of actively-managed large cap funds—which aim to beat the market through stock picking—underperformed their benchmark over a 20-year period.
Investing in index funds is one possible way to get exposure to top performers. For instance, Apple has been part of the S&P 500 since 1982, about a year after it went public.
Markets
The European Stock Market: Attractive Valuations Offer Opportunities
On average, the European stock market has valuations that are nearly 50% lower than U.S. valuations. But how can you access the market?
European Stock Market: Attractive Valuations Offer Opportunities
Europe is known for some established brands, from L’Oréal to Louis Vuitton. However, the European stock market offers additional opportunities that may be lesser known.
The above infographic, sponsored by STOXX, outlines why investors may want to consider European stocks.
Attractive Valuations
Compared to most North American and Asian markets, European stocks offer lower or comparable valuations.
Index | Price-to-Earnings Ratio | Price-to-Book Ratio |
---|---|---|
EURO STOXX 50 | 14.9 | 2.2 |
STOXX Europe 600 | 14.4 | 2 |
U.S. | 25.9 | 4.7 |
Canada | 16.1 | 1.8 |
Japan | 15.4 | 1.6 |
Asia Pacific ex. China | 17.1 | 1.8 |
Data as of February 29, 2024. See graphic for full index names. Ratios based on trailing 12 month financials. The price to earnings ratio excludes companies with negative earnings.
On average, European valuations are nearly 50% lower than U.S. valuations, potentially offering an affordable entry point for investors.
Research also shows that lower price ratios have historically led to higher long-term returns.
Market Movements Not Closely Connected
Over the last decade, the European stock market had low-to-moderate correlation with North American and Asian equities.
The below chart shows correlations from February 2014 to February 2024. A value closer to zero indicates low correlation, while a value of one would indicate that two regions are moving in perfect unison.
EURO STOXX 50 | STOXX EUROPE 600 | U.S. | Canada | Japan | Asia Pacific ex. China |
|
---|---|---|---|---|---|---|
EURO STOXX 50 | 1.00 | 0.97 | 0.55 | 0.67 | 0.24 | 0.43 |
STOXX EUROPE 600 | 1.00 | 0.56 | 0.71 | 0.28 | 0.48 | |
U.S. | 1.00 | 0.73 | 0.12 | 0.25 | ||
Canada | 1.00 | 0.22 | 0.40 | |||
Japan | 1.00 | 0.88 | ||||
Asia Pacific ex. China | 1.00 |
Data is based on daily USD returns.
European equities had relatively independent market movements from North American and Asian markets. One contributing factor could be the differing sector weights in each market. For instance, technology makes up a quarter of the U.S. market, but health care and industrials dominate the broader European market.
Ultimately, European equities can enhance portfolio diversification and have the potential to mitigate risk for investors.
Tracking the Market
For investors interested in European equities, STOXX offers a variety of flagship indices:
Index | Description | Market Cap |
---|---|---|
STOXX Europe 600 | Pan-regional, broad market | €10.5T |
STOXX Developed Europe | Pan-regional, broad-market | €9.9T |
STOXX Europe 600 ESG-X | Pan-regional, broad market, sustainability focus | €9.7T |
STOXX Europe 50 | Pan-regional, blue-chip | €5.1T |
EURO STOXX 50 | Eurozone, blue-chip | €3.5T |
Data is as of February 29, 2024. Market cap is free float, which represents the shares that are readily available for public trading on stock exchanges.
The EURO STOXX 50 tracks the Eurozone’s biggest and most traded companies. It also underlies one of the world’s largest ranges of ETFs and mutual funds. As of November 2023, there were €27.3 billion in ETFs and €23.5B in mutual fund assets under management tracking the index.
“For the past 25 years, the EURO STOXX 50 has served as an accurate, reliable and tradable representation of the Eurozone equity market.”
— Axel Lomholt, General Manager at STOXX
Partnering with STOXX to Track the European Stock Market
Are you interested in European equities? STOXX can be a valuable partner:
- Comprehensive, liquid and investable ecosystem
- European heritage, global reach
- Highly sophisticated customization capabilities
- Open architecture approach to using data
- Close partnerships with clients
- Part of ISS STOXX and Deutsche Börse Group
With a full suite of indices, STOXX can help you benchmark against the European stock market.
Learn how STOXX’s European indices offer liquid and effective market access.
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