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.
Maps
Mapped: The 10 U.S. States With the Lowest Real GDP Growth
In this graphic, we show where real GDP lagged the most across America in 2023 as high interest rates weighed on state economies.
The Top 10 U.S. States, by Lowest Real GDP Growth
This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.
While the U.S. economy defied expectations in 2023, posting 2.5% in real GDP growth, several states lagged behind.
Last year, oil-producing states led the pack in terms of real GDP growth across America, while the lowest growth was seen in states that were more sensitive to the impact of high interest rates, particularly due to slowdowns in the manufacturing and finance sectors.
This graphic shows the 10 states with the least robust real GDP growth in 2023, based on data from the Bureau of Economic Analysis.
Weakest State Economies in 2023
Below, we show the states with the slowest economic activity in inflation-adjusted terms, using chained 2017 dollars:
Rank | State | Real GDP Growth 2023 YoY | Real GDP 2023 |
---|---|---|---|
1 | Delaware | -1.2% | $74B |
2 | Wisconsin | +0.2% | $337B |
3 | New York | +0.7% | $1.8T |
4 | Missississippi | +0.7% | $115B |
5 | Georgia | +0.8% | $661B |
6 | Minnesota | +1.2% | $384B |
7 | New Hampshire | +1.2% | $91B |
8 | Ohio | +1.2% | $698B |
9 | Iowa | +1.3% | $200B |
10 | Illinois | +1.3% | $876B |
U.S. | +2.5% | $22.4T |
Delaware witnessed the slowest growth in the country, with real GDP growth of -1.2% over the year as a sluggish finance and insurance sector dampened the state’s economy.
Like Delaware, the Midwestern state of Wisconsin also experienced declines across the finance and insurance sector, in addition to steep drops in the agriculture and manufacturing industries.
America’s third-biggest economy, New York, grew just 0.7% in 2023, falling far below the U.S. average. High interest rates took a toll on key sectors, with notable slowdowns in the construction and manufacturing sectors. In addition, falling home prices and a weaker job market contributed to slower economic growth.
Meanwhile, Georgia experienced the fifth-lowest real GDP growth rate. In March 2024, Rivian paused plans to build a $5 billion EV factory in Georgia, which was set to be one of the biggest economic development initiatives in the state in history.
These delays are likely to exacerbate setbacks for the state, however, both Kia and Hyundai have made significant investments in the EV industry, which could help boost Georgia’s manufacturing sector looking ahead.
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