Over the past 10 years, the stock market experienced one of its most severe declines in history, then followed with a robust rally that is still going on. During this time, some stocks have thrived while others have struggled.
GOBankingRates researched historical prices to see what $1,000 invested in your favorite companies in 2007 would be worth 10 years later. Click through to see which companies have produced impressive average annualized returns during the past decade to get some ideas of the best ways to invest $1,000.
Apple (AAPL): $8,818.81
- Share price Aug. 31, 2007: $19.78
- Share price Aug. 31, 2017: $164.00
- Average annualized return: 24.32%
Apple is one of the most iconic and well-known brands in the world, thanks in part to a few key reinventions and rebranding strategies. And while it is a technology company, Apple can also be considered one of the premier consumer product brands. The stock has had some ups and downs over the past decade, though it has done well recently. Shares have popped 60 points over the past year, good for a gain of more than 55 percent.
Netflix (NFLX): $69,835.28
- Share price Aug. 31, 2007: $2.50
- Share price Aug. 31, 2017: $174.71
- Average annualized return: 52.90%
If you had invested $1,000 in Netflix 10 years ago, you'd likely be tens of thousands of dollars richer today — if you stayed with the company for the long term. Netflix shares have been prone to large gains and losses as it has grown into a dominant media company. For example, in 2003, the stock posted a 396.73 percent gain, nearly matched in 2013 by a 297.63 percent increase. On the downside, the stock fell 60.56 percent in 2011 and 54.91 percent in 2004. Over the past year, the stock has risen another 75 points, or just over 79 percent.
Alphabet (GOOGL): $2,940.78
- Share price Aug. 31, 2007: $257.37
- Share price Aug. 31, 2017: $939.33
- Average annualized return: 11.39%
Alphabet is the holding company for technology giant Google, well-known for its search engine. Over the years, the company has expanded into many different businesses. These range from office productivity products to phones, virtual assistants and entertainment services. In July 2017 the company reported quarterly revenue of $26 billion, a 21 percent increase from the prior year. The stock has responded in kind, surging 150 points over the past year.
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Walt Disney Co. (DIS): $3,273.39
- Share price Aug. 31, 2007: $33.60
- Share price Aug. 31, 2017: $101.20
- Average annualized return: 12.59%
With its TV shows, networks, movies and theme parks, Disney has evolved into a huge media conglomerate. Its share price stagnated in 2016 and 2017, in part due to poor subscriber numbers at subsidiary ESPN. However, the long-term performance of the stock has fared better, beating its media group peers over the past 3-, 5-, 10- and 15-year periods.
Coca-Cola (KO): $2,095.80
- Share price Aug. 31, 2007: $26.89
- Share price Aug. 31, 2017: $45.55
- Average annualized return: 7.68%
Coke is an iconic brand and one of Warren Buffett's favorite investments. However, the "Oracle of Omaha" may have to hold the stock for some time, as it has lagged in performance against the S&P 500. Over the past 1-, 3-, 5- and 15-year periods, the S&P 500 has bested the total return of KO, despite a 12 percent year-to-date gain in the share price.
Walmart (WMT): $2,158.92
- Share price Aug. 31, 2007: $43.63
- Share price Aug. 31, 2017: $78.07
- Average annualized return: 8.00%
Walmart is the world's biggest retailer but it suffered a scare from competitors like Amazon in 2015, and the stock fell 26.34 percent. The stock bounced back in 2016 and 2017, but its longer-term performance has been less robust. Walmart shares have lagged the S&P 500 over the past 1-, 3-, 5- and 15-year periods.
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Microsoft (MSFT): $2,893.60
- Share price Aug. 31, 2007: $28.73
- Share price Aug. 31, 2017: $74.77
- Average annualized return: 11.21%
Microsoft’s stock has performed well over the past few years, but it pales in comparison to its performance during the 1990s, when it helped create a number of “Microsoft millionaires.” These days, it's still considered one of the safest stocks to invest in — especially for first-time investors. The stock has outpaced the S&P 500 every year since 2013, nearly doubling the return of the index in 2017 alone.
Nike (NKE): $4,091.52
- Share price Aug. 31, 2007: $12.20 (adjusted close)
- Share price Aug. 31, 2017: $52.81
- Average annualized return: 15.13%
Nike continues to be an innovator and leader in the sports apparel and equipment industry. By sponsoring a number of high-profile athletes and teams, the Nike symbol is one of the most recognizable around. However, in 2016 the stock hit some headwinds and took a hard tumble. The underperformance has carried over into 2017, with NKE trailing the S&P 500 by more than 6 percentage points through August.
General Electric (GE): $857.99
- Share price Aug. 31, 2007: $38.87
- Share price Aug. 31, 2017: $24.55
- Average annualized return: -1.52%
Like much of the overall market, General Electric’s stock plummeted during the 2008-09 financial crisis. For GE, the culprit was mainly its financial division, GE Capital. The stock recovered nicely coming out of that period, but major missteps in 2014 and 2017 have turned it into a long-term underperformer. General Electric is the only stock on our list with a negative return over the past 10 years, and it has underperformed both the S&P 500 and its sector over a 1-, 3-, 5-, 10- and 15-year basis.
Amazon (AMZN): $12,246.65
- Share price Aug. 31, 2007: $79.91
- Share price Aug. 31, 2017: $980.60
- Average annualized return: 28.47%
A $1,000 investment in Amazon would have provided a substantial return for the long-term investor. A leader in e-commerce, Amazon consistently adds new products and services for consumer and business customers. This might be the reason many experts say this is one stock you'll want to hold onto for a very long time. In the past year alone, the stock has skyrocketed more than 200 points, peaking at above $1,000 per share in 2017.
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Pfizer (PFE): $1,772.35
- Share price Aug. 31, 2007: $24.84
- Share price Aug. 31, 2017: $33.92
- Average annualized return: 5.89%
Thinking about investing in the healthcare sector? Pfizer is a good stock for beginners to try. The company is a major biopharmaceutical company whose stock provides consistent growth. On the downside, it has lagged the performance of both its industry group and the S&P 500 index over multi-year periods. Over the past 12 months, the stock is essentially flat.
Mylan NV (MYL): $2,089.97
- Share price Aug. 31, 2007: $15.10
- Share price Aug. 31, 2017: $31.48
- Average annualized return: 7.65%
If you've been staying on top of current events, you might recognize the Mylan name. The company has been in the news for its steep price hikes for the EpiPen allergic reaction treatment. Public outrage over the EpiPen pricing issue hit the stock hard in 2016, when shares fell about 40 percent. The bad times have carried over into 2017, with the stock dropping an additional 17 percent through August. These recent declines bring the 10-year return to just about even with the S&P 500.
McDonald’s (MCD): $3,836.02
- Share price Aug. 31, 2007: $49.25
- Share price Aug. 31, 2017: $159.97
- Average annualized return: 14.39%
McDonald's is in an industry where it must regularly reinvent itself. Faced with changing consumer trends and an onslaught of competitors, the company has responded by retooling its menu, adding all-day breakfast and changing to fresh beef in some of its burgers. The stock price results have been impressive, with a nearly 34 percent year-to-date gain as of Aug. 31. Those results have helped turn the stock into a long-term champion, besting the S&P 500 index over 1-, 3-, 5-, 10- and 15-year periods.
Starbucks (SBUX): $4,283.83
- Share price Aug. 31, 2007: $12.31 (adjusted close)
- Share price Aug. 31, 2017: $54.86
- Average annualized return: 15.66%
Starbucks has taken the way we drink coffee and turned it into a lifestyle, both domestically and internationally. After being hit hard during the financial crisis, the stock rebounded nicely the following years. Starbucks ran into trouble in 2016 and 2017, however, as charismatic leader Howard Schulz stepped aside for new CEO Kevin Johnson. Over the past year, the stock has been essentially flat, underperforming the S&P 500 by a wide margin.
FedEx (FDX): $2,026.78
- Share price Aug. 31, 2007: $109.68
- Share price Aug. 31, 2017: $214.38
- Average annualized return: 7.32%
Although FedEx and other shipping competitors have benefited from the boom in e-commerce retailers such as Amazon, its stock has underperformed the S&P 500 over the past decade. Investors would have done better in an index fund tracking the S&P, albeit only slightly, as the S&P returned 7.62 percent annually over the same period. However, things have lately looked up for FedEx. The stock has risen about 50 points over the past year.
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