How many did you get right? If it’s this hard to guess the best performing stocks looking backward, imagine how impossible it is to predict the same looking forward.
Will Monster Beverage stock go up by 100,000% over the next 25 years?? Probably not. But what will? No freaking clue. Trying to pick which stocks will be the next big winner is a fool’s game. The most “sophisticated” investors in the world routinely fail at this.
Instead, buy and hold index funds. That way you never have to worry about if you picked the right stocks because you will always own the winners!
Some companies, like Google, Tesla, and Facebook (Meta), weren’t public this whole period so they don’t count. But since those companies have been public, none would have made the list (Tesla would have been close). Amazon went public 26 years ago. Since their IPO they would easily make this list, but over the last 25 years they are ONLY up 10K%.
You might think it would be easier to guess the winners over the last 10 years?? Well, it really isn’t. Here are the top 10 best companies from the last 10 years.
1. Celsius Holdings – 31,502%
2. NVIDIA – 11,892%
3. Advanced Micro Devices – 3,228%
4. Tesla – 2,729%
5. Broadcom – 1,969%
6. Cadence Design Systems – 1,962%
7. Builders FirstSource – 1,802%
8. Fair Isaac Corp – 1,743
9. Palo Alto Networks 1,672%
10. Texas Pacific Land – 1,576
So don’t get fancy and try and pick the next hot stock. Not to spoil the ending for you, but an index fund will beat you every time in the long run.
As always, reminding you to build wealth by following the two PFC rules: 1.) Live below your means and 2.) Invest early and often.
-Vivi & Shane