As we navigate the world of personal finance, it’s always helpful to take a step back and look at historical performance analysis of blue-chip companies. These are the tried-and-true giants of the stock market that have stood the test of time. While past performance is not an indicator of future results, it can provide some interesting insights and maybe even a chuckle or two!
Let’s dive into the realm of historical data and see what these blue chips have been up to over different time periods.
1. The Turtle-like Growth: General Electric (GE)
General Electric, once considered an industrial powerhouse, has had a bit of a rough patch in recent years. But let’s rewind back to its glory days in the late 1990s when GE was flying high.
If you had invested $10,000 in GE on January 1st, 1995, by December 31st, 2000 your investment would have grown to approximately…wait for it…$10,086! That’s right folks; after six long years your investment gained you a whopping $86.
But hey, don’t be too disappointed because during that same period if you had invested in dot-com stocks like Amazon or Yahoo!, you might be able to retire on your private island by now!
2. The Tale of Two Decades: IBM
IBM is another iconic company that has seen its fair share of ups and downs over the decades. Let’s compare two different twenty-year periods for this tech giant.
If you had invested $10,000 in IBM on January 1st, 1980 and held onto it until December 31st, 1999 – known as the era before Y2K – your investment would have grown to approximately $400k! Now we’re talking serious money!
However, fast forward to another twenty-year period from January 1st, 2000 till December 31st, 2019, and your $10,000 investment would have shrunk to around $11k. Ouch! This goes to show that even the mighty can stumble.
3. The Rollercoaster Ride: General Motors (GM)
General Motors has had a tumultuous history with its fair share of highs and lows. Let’s take a look at its performance over three different time periods.
If you had invested $10,000 in GM on January 1st, 1950 and held onto it until December 31st, 1974 – an era marked by muscle cars and bell-bottoms – your investment would have grown to approximately $420k! That’s enough money to buy yourself a fleet of vintage Corvettes!
However, if you had invested that same amount on January 1st, 1975 and held onto it until December 31st, 2009 – a period filled with oil crises and financial meltdowns – your investment would have dwindled down to roughly $960. Yes, you read that right; less than one thousand dollars!
But don’t despair just yet because if you had the foresight to invest in GM again on January 1st, 2010 and held onto it till December 31st, 2019 – amidst their resurgence after bankruptcy – your initial $10k would have grown to around $24k. It seems like GM is making a comeback!
4. The Steady Eddy: Johnson & Johnson (JNJ)
Now let’s turn our attention towards the pharmaceutical giant Johnson & Johnson for some stability in these turbulent times.
If you had invested $10,000 in JNJ on January 1st,1990 through all the ups and downs until December 31st ,2019 your investment would have soared to approximately $180k. Not too shabby for a long-term hold!
Johnson & Johnson has proven time and again that it’s a reliable investment, regardless of the economic climate or global pandemics. Plus, their Band-Aids have come in handy for all those investing boo-boos along the way!
While historical performance analysis can offer some guidance, it’s always important to remember that the stock market is unpredictable. Investing should be done with careful consideration and a diversified portfolio.
So there you have it, folks! A humorous journey through some historical performance analysis of blue-chip companies. Whether you found these numbers enlightening or hilarious, let them serve as a reminder to approach the stock market with caution and maybe even a sense of humor!