The 10 best stocks on the US stock market in the last 30 years

While the S&P 500 returned “only” 9.6% annually over the past decades, there were 10 stocks with three times higher returns. Which are?

Let’s see below the podium with the 10 best actions:

Before continuing, I want to make a comment about this, since it happens to many investors. It’s tempting to fantasize about having been one of those people who bought shares of Manzana on day one and simply held them until today, watching their value grow exponentially. But the reality is much more complex.

In the real world, emotions play a fundamental role. Let’s remember that it is very difficult to sustain losses (in addition to being not recommended). And it is even more difficult not to be tempted and sell when one is in profits. It’s not just about buying and holding. It’s about making decisions in an uncertain environment.

Would we have had the strength to hold on when the stock doubled or would we have walked away happy with a 100% gain in a short time? Would we have stayed with the five drops greater than 50% that Apple had or would we have sold? Investment is not just numbers, it is psychology too.

Let’s move on to the names in the ranking:

• MNST (Monster Beverage): Produces and markets energy drinks and related products. It had an average annual return of 31.1%.

• AMZN (Amazon): Leading company in e-commerce, cloud services, entertainment and electronic devices. It had an average annual return of 32.6%.

• AAPL (Apple): It designs and sells electronic products, software and services around the world. It is currently the largest company in the world. It had an average annual return of 24.7%.

• NVDA (Nvidia): Develops graphic processing units (GPU) and visual computing technologies. It is booming due to artificial intelligence. It had an average annual return of 29.1%.

• NVR (NVR Corp): Home builder and provider of residential mortgage services in the US. It had an average annual return of 23.3%.

• POOL (Pool Corp): Distributor of equipment, supplies and products related to swimming pools and recreation areas. It had an average annual return of 24.5%.

• MO (Altria): Tobacco and other related products company. It had an average annual return of 22.6%.

• BIIB (Biogen): Biotechnology company focused on the development of therapies for neurodegenerative and autoimmune diseases. It had an average annual return of 22.5%.

• AXON (Axon Enterprise): It produces security technology, especially for the police sector, such as body cameras and data management software. It had an average annual return of 30.4%.

• NFLX (Netflix): Streaming entertainment platform that offers a wide variety of series, movies and original content. It had an average annual return of 31%.

The S&P 500 index, represented by the SPY ETF, has recorded growth of 1,447% over these three decades, which is equivalent to an annualized return of 9.6%. While that’s an impressive performance, the gap with the best stocks is overwhelming.

These exceptional cases not only illustrate the potential of good stocks over the long term, but also the importance of diversification.

The lessons are clear: persistence, innovation and the ability to adapt are characteristics that define the companies that have dominated the market for the last three decades. And for investors, these success stories serve as a reminder that identifying and holding strong stocks over the long term can pay off big time. But you shouldn’t believe that it is easy either. In fact, only few stocks have this privilege.

While identifying strong long-term stocks can be beneficial, the ‘buy and hold’ approach is not without risk. A significant drop in a stock price can test an investor’s patience. Without a well-defined exit strategy, there is a risk of being trapped in an investment that does not recover, facing considerable losses.

The absence of a clear strategy can compromise long-term performance and, in some cases, significantly impact invested capital. So the important thing is to always have a plan. Let us remember that this ranking shows only the companies that were successful.

For now, the returns of these 10 stocks speak for themselves: those who trusted these innovative companies have been greatly rewarded for their long-term vision.

To finish, I want to invite you to download a report that I prepared with three simple secrets to discover winning actions. I honestly think it will be very useful for you to be able to analyze companies with potential. It has no waste. You can download it at this link: https://informes.cartafinanciera.com/

Note: The material contained in this note should NOT be interpreted under any circumstances as investment advice or a recommendation to buy or sell a particular asset. This content is for educational purposes only and represents the opinion of the author only. In all cases it is advisable to seek advice from a professional before investing.