The top 5 best stocks of the past decade have compound annual growth rates between 40% and 75%

From Nasdaq: 2024-12-26 09:05:00

Only around 20% of S&P 500 stocks outperform the market average each year, making finding a winner a big deal. The top five stocks of the past decade, including Nvidia and Tesla, have compound annual growth rates between 40% and 75%. Despite significant drops in value, holding onto winners is key to success in investing.

Investors must be prepared for stocks to drop 50% or more, which can happen multiple times. Selling after a big drop can lead to missing out on huge gains. Having an investment thesis and staying calm during market fluctuations is crucial. Even the best stocks can experience significant volatility.

Consider investing in Nvidia, which wasn’t among the 10 best stocks recently identified by the Motley Fool Stock Advisor team. Despite missing the list, Nvidia has shown remarkable returns over time. Stock Advisor has significantly outperformed the S&P 500 since 2002, providing a solid blueprint for investing success. The Motley Fool recommends investing in Advanced Micro Devices, Nvidia, Tesla, and Fair Isaac. They have disclosed their positions in these companies and their recommendation policy. The author’s views in the article do not necessarily reflect those of Nasdaq, Inc.



Read more at Nasdaq: The Surprising Thing That the 5 Best Stocks of the Past Decade All Have in Common