What if you invested $1000 in Microsoft 20 years ago?
The bottom line on Microsoft stock
If You Invested $1000 In This Stock 20 Years Ago, You Would Have $16,000 Today. Microsoft MSFT has outperformed the market over the past 20 years by 7.1% on an annualized basis producing an average annual return of 15.03%.
Microsoft's return is even more impressive than Apple's, as it turned $1,000 invested in its 1986 IPO to $4.1 million now.
According to our calculations, a $1000 investment made in February 2014 would be worth $5,971.20, or a gain of 497.12%, as of February 5, 2024, and this return excludes dividends but includes price increases. Compare this to the S&P 500's rally of 178.17% and gold's return of 55.50% over the same time frame.
Therefore, if you had invested $1,000 in Apple stock in 1990, it would be worth approximately $598,972.50 today.
A decade ago, $1,000 would have bought you a little more than 210 shares. Today those same shares are nearly $900, each. If you'd invested $1,000 into Nvidia a decade ago, the position would be worth nearly $185,000 today.
Achieving this milestone isn't a walk in the park by any means, but it can be more accomplishable than many realize, thanks to the power of investing and compound interest. A $10,000 investment in Microsoft 30 years ago, at the start of January 1994, would be worth nearly $2.4 million today with dividends reinvested.
What does that look like on a brokerage statement? Check out the above chart and you'll see that if you invested $1,000 in Apple stock 20 years ago, it would today be worth almost $530,000. The same $1,000 invested in the S&P 500 would have theoretically turned into $6,186 over the same period.
Have a look at the above chart and you'll see that if you put a grand into MSFT stock two decades ago, today it would be worth more than $24,000. The same amount invested in the S&P 500 20 years ago would theoretically be worth almost $6,500 today.
Microsoft (NASDAQ:MSFT) is undoubtedly one of the best blue-chip stocks to buy in 2024. They just recently surpassed the $3 trillion market capitalization status, and AI will be a huge growth driver for the company over the next decade.
How much is $10,000 in Tesla 10 years ago?
A $10,000 investment in Tesla back in April of 2014 would now be worth roughly $121,460 right now -- and that's even factoring in the stock's pullback this year.
| Discount Rate | Present Value | Future Value |
|---|---|---|
| 6% | $1,000 | $3,207.14 |
| 7% | $1,000 | $3,869.68 |
| 8% | $1,000 | $4,660.96 |
| 9% | $1,000 | $5,604.41 |
This means that your $1,000 10 years ago — technically, $1,002 — would have bought 60 shares of Tesla. As of Mar. 3, 2024, those 60 shares of Tesla would be worth $12,158.40. That marks a 28.342% annual rate of return.
Factoring in the company's five stock splits, these 454 shares would have increased to 101,696 shares, as of today. With Apple closing last week at $140.09, it means an initial $10,000 investment nearly 42 years ago would now be worth $14,246,593. Keep in mind that this figure doesn't take into account dividends paid.
Those gains translate to a 23.2% compound annual growth rate for Amazon compared to a 6.2% CAGR for the S&P 500 in that time. As a result, $10,000 in AMZN stock purchased 20 years ago would now be worth $645,262. A $10,000 investment in the S&P over the same period, however, would amount to $33,452.
Apple completed its purchase of Shazam in 2018 for an estimated $400 million, with the goal of integrating the technology into iPhones and other smart devices.
Key Points. Nvidia's stock has seen extraordinary growth over the last decade, but maintaining its recent 67% annual return rate is unlikely in the future. Investing $20,000 in Nvidia in 2016 could have made you a millionaire by 2024.
To put this into perspective, as of Feb. 13, shares of Nvidia were up 17,044% in the past 10 years, according to an Investor's Business Daily analysis. In turn, that means that if you had invested $10,000 in the stock 10 years ago, your investment would now be worth an eye-popping $1.7 million.
Semiconductor designer Nvidia (NASDAQ: NVDA) has made many millionaires in recent years. Its stock has more than tripled in the last year alone.
Now, let's consider how our calculations change if the time horizon is 10 years. If you are starting from scratch, you will need to invest about $4,757 at the end of every month for 10 years. Suppose you already have $100,000. Then you will only need $3,390 at the end of every month to become a millionaire in 10 years.
How much would $10000 invested in Amazon in 2000 be worth today?
If you had invested $10,000 in Amazon stock on Jan. 1, 2000 (just before the dot-com crash), your investment would be worth over $470,000 today.
Be that as it may, the evidence suggests that Microsoft stock is still a reasonable buy, even near its all-time high.
If you had invested $1,000 during Amazon's IPO in May 1997, your investment would be worth $1,341,000 as of August 31, according to CNBC calculations.
Indeed, Apple shares will never get back to $700, says The Economist.
If you had invested $1,000 in Apple stock on Feb. 4, 1997, today, you would have $1,343,269. Likewise, if you had invested $1,000 in an index fund replicating Nasdaq, you would have $11,038. A similar $1,000 investment in an index fund that replicates the S&P 500 would be worth $6,140.
