Investing is often described as a long-term game, and the last two decades have delivered some stunning results for patient investors. A newly released analysis of the best-performing stocks in the S&P 1500 since 2004 highlights how a handful of companies turned modest investments into extraordinary wealth.
But before we dive in, a word of caution: Past performance is no guarantee of future returns. While these numbers inspire awe, replicating such gains is far from certain. Following the herd blindly is a good way of turning yourself into a terrible trader/investor…
$1k twenty years ago in these names and what it would be worth today:
5. Booking $BKNG: $215k
4. Apple $AAPL: $238k
3. Texas Pacific $TPL: $329k
2. Netflix $NFLX: $553k
1. NVIDIA $NVDA: $944k
$10,000 Invested in Nvidia $NVDA 20 years ago is currently worth $9,445,660.
Best Performing S&P 500 Stocks Last 20 Years
The 20-Year Investing Goldmine: Stocks That Turned $1,000 Into Small Fortunes
The Standout Performers
- The MVP of Growth – NVIDIA (NVDA):
A $1,000 investment in NVIDIA 20 years ago would now be worth an eye-watering $944,566. The company’s dominance in AI, gaming, and graphics hardware has positioned it as a market leader, but such extraordinary success was impossible to predict back in 2004. - Netflix (NFLX): From DVDs to Streaming Titan
Netflix’s pivot from DVDs to streaming made it one of the biggest media disruptors. A $1,000 stake grew to $553,216, highlighting the power of riding a trend early—but such trends are rare and come with high risks. - Texas Pacific Land (TPL): Energy’s Quiet Winner
While lesser-known, this energy-focused company transformed a $1,000 investment into $329,094, benefiting from sustained energy demand and savvy land management strategies.
Diverse Sectors, Big Gains
- The Power of Patience:
- NVIDIA (NVDA) is the undisputed leader, turning a modest $1,000 investment in 2004 into a jaw-dropping $944,566 as of late 2024. That’s an annualized return of nearly 40%! Its meteoric rise reflects the boom in AI, GPUs, and gaming technology.
- Other top performers like Netflix (NFLX) and Texas Pacific Land (TPL) also achieved stratospheric growth, growing initial investments to $553,216 and $329,094, respectively.
- Technology Leads the Pack:
- Unsurprisingly, technology companies dominate the list. Out of the top 10 stocks, four belong to the tech sector: NVIDIA, Apple, Salesforce, and Monolithic Power Systems.
- These companies leveraged innovation, scalability, and changing consumer habits to deliver outsized returns.
- Diversity of Sectors:
- While technology leads, other sectors like healthcare, consumer discretionary, and industrials also made a significant impact. Stocks like Intuitive Surgical (ISRG), Booking Holdings (BKNG), and Comfort Systems (FIX) show that opportunities exist across various industries.
- Industrials Punch Above Their Weight:
- Industrial companies like Old Dominion Freight Line (ODFL), Lennox International (LII), and United Rentals (URI) demonstrate that “boring” sectors often provide surprisingly strong returns. These businesses benefit from economic growth and infrastructure trends.
Lessons from the Last 20 Years
- Compounding Takes Time:
These gains didn’t happen overnight. Investors who held their shares through market downturns were rewarded—but only after enduring significant volatility. - Trends Shape the Market:
Many of these winners capitalized on major shifts: the rise of streaming, e-commerce, AI, and healthcare innovation. Identifying trends early is a skill that often separates top-performing portfolios from the rest. - Risk and Reward:
With extraordinary returns come extraordinary risks. Many of the companies on this list faced moments where their future seemed uncertain. Not every high-growth stock will survive, and many will fail.
