26 MAY 2016
Thanks to the magic of compound interest, stock splits and bumper dividends, investing in the right company at the right time can transform a tiny holding into a substantial fortune – as long as you're prepared to be patient and hold onto your investment. Take a look at the most lucrative long-term stocks from the year you were born, based on an initial investment of $1,000.
1940 – Dow Chemical: $1,000 invested then is worth $243,336 (£166k) + dividends today
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Key to wartime logistics, Dow has experienced steady growth since the 1940s. A single share in 1940 was priced at $70, so $1,000 invested in 1940 would buy you 14.28 shares, which by 2016 have multiplied to 4,623 shares worth $243,124 (£166k). And if you'd reinvested the dividends, your holding would be in the hundreds of thousands of dollars.
1941 – S&P 500 Index Fund: $1,000 invested then is worth $2.9 million (£2m) today
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Holding onto stocks for the long run can be highly lucrative even if you spread your risk. So $1,000 put into the S&P 500 in 1942 would offer an average annualized return of 8.9% – giving you a holding of $2.9 million (£2m) today if you'd reinvested the dividends.
1942 – Pfizer: $1,000 invested then is worth $206,950 (£142k) + dividends today
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Big pharma firm Pfizer released 240,000 shares of common stock in 1942 – the cash generated helped fund the commercialization of penicillin. One share cost $23.47 so if you bought $1,000-worth in 1942 it would equal 6,135 shares today worth $206,950 (£142k); more if you'd reinvested the dividends.
1943 – General Electric: $1,000 invested then is worth $197.974 (£135k) + dividends today
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The industrial giant was awarded its fair share of wartime contracts and has gone from strength to strength ever since. With a single share priced at $38 in 1943, a $1,000 investment would have snagged you 26.32 shares. Those shares would have multiplied over the years, and today your holding would be worth $197.974 (£135k) even without reinvesting your dividends.
1944 – Johnson & Johnson: $1,000 invested then is worth $7.5 million (£5.1) + dividends today
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Johnson & Johnson's initial public offering (IPO) was way back in 1944. Back then, a single share would have set you back $37.50, so $1,000 would have snapped up 26.67 shares. You'd have been wise to splash the cash as today your holding would comprise 66,675 shares worth $7.5 million (£5.1m) or in the tens of millions if you'd reinvested the dividends.
1945 – UK stock market: $1,000 invested then is worth $1.2 million (£820k) today
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The close of war was an opportune time to play the stock market, especially in the UK – an investment of $1,000 in 1945 would have been worth $1.2 million (£819,600) by 2016.
1946 – Lafayette College Investing Club: $1,000 invested then is worth $1.3 million (£888k) today
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Entrusting your cash to America's most successful college investment club would have been a savvy move back in 1946. A $1,000 investment would have turned into a cool $1.3 million (£888k) by 2016.
1947 – IBM: $1,000 invested then is worth $64million (£43.7) + dividends today
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If you'd become the owner of 333 IBM shares priced at $1,000 on the eve of the information revolution, your holding would have ballooned by 2016 to a staggering 433,333 shares worth a whopping $64 million (£43.7m), even without the dividends reinvested.
1948 – Walt Disney: $1,000 invested then is worth $96 million (£66m) today
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A phenomenal investment, Walt Disney stock has enjoyed a compound annualized growth rate of 18% since 1948, as well as multiple stock splits and dividend payouts. So $1,000 invested that year would be worth around $96 million (£66m) in 2016 assuming all the dividends had been reinvested.
1949 – A.W. Jones Partnership: $1,000 invested then is worth millions of dollars today
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Finance guru Alfred Winslow Jones founded the first hedge fund in 1949 and his A.W. Jones Partnership has offered stellar returns. An investment of $1,000 in 1949 would have skyrocketed to $48,000 (£33k) by 1969, and would be worth millions of dollars in 2016.
1950 – ExxonMobil/Standard Oil: $1,000 invested then is worth $2.4 million (£1.7m) today
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Back in 1950, an investment of just $1,000 in Standard Oil of New Jersey, the forerunner of ExxonMobil, would have set you up for a very comfortable retirement. At the start of 2016, your holding would have been worth $2.4 million (£1.7m).
1951 – Australian stock market: $1,000 invested then is worth $148,000 (£102k) today
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Along with the UK and US stock markets, the Australian All Ordinaries index has been buoyant throughout the 20th and early 21st century. An investment of $1,000 in the broad Australian stock market in 1951 would be worth $148,000 (£102k) today.
1952 – Gold: $1,000 invested then is worth $82,000 (£56k) today
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Forget the stock market for a moment. With its price attractively low, gold made for a solid investment in 1952. In fact, if you'd acquired shares to the tune of $1,000 that year your ingots would be valued at $82,000 (£56k) in 2016.
1953 – PZ Cussons: $1,000 invested then is worth $737,000 (£504k) today
PZ Cussons
Known at the time as Paterson Zochonis, the company went public on the London Stock Exchange in 1953. A fantastic time to invest, $1,000-worth of shares purchased at the IPO would have hit £504,000 ($737k) in early 2016.
1954 – Templeton Growth Fund: $1,000 invested then is worth 100s of thousands of dollars today
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Globally diversified mutual funds were pioneered by Sir John Templeton, who set up his eponymous firm in 1954. A bona fide long-term cash generator, $1,000 invested in 1954 had turned into $100,000 (£69k) by 1993, and would be worth hundreds of thousands of dollars today.
1955 – Aflac: $1,000 invested then is worth $10.9 million (£7.5m) today
Aflac
Currently America's largest provider of supplemental insurance, Aflac was the company to invest in back in 1955. Investing $1,000 would have bagged you 92 shares that year which, after stock splits and dividend bonuses, would represent a holding worth $10.9 million (£7.5m) today.
1956 – Walter Schloss Associates: $1,000 invested then is worth millions of dollars today
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In 1956, legendary value investor Walter Schloss was at the beginning of a super-successful few decades of making mega-bucks for his clients. Putting $1,000 into his fund that year would have turned into $525,000 (£362k) when he closed it in 2000.
1957 – Philip Morris/Altria: $1,000 invested then is worth $5.5 million (£3.8m) today
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Investing in tobacco conglomerate Philip Morris, which is now known as Altria, may not have been the most ethical choice but it would have been a financially sound decision, and then some. A $1,000 investment in 1957 would have transformed into $5.5 million (£3.8m) by 2007.
1958 – American Century Investments: $1,000 invested then is worth 100s of millions of dollars today
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A $1,000 stake in this investment firm put down in 1958 would have paid off big-time had you held on to it for 40 years. When American Century sold a large chunk of the company to J.P Morgan in 1998, that $1,000 investment had become a massive $600 million (£410m), and would be worth even more today.
1959 – Publix: $1,000 invested then is worth $4 million (£2.7m) today
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The Florida-based supermarket chain was definitely worthy of your investment cash back in 1959. Given the multitude of stock splits over the years and the company's impressive growth, a $1,000 investment made in 1959 would be worth around $4 million (£2.7m) in 2016.
1960 – Westfield: $1,000 invested then is worth $174 million (£120m) today
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You'd have lucked out big-time had you acquired just $1,000 in Westfield shares back in 1960 when the chain was floated on the Australian Stock Exchange. By 2011, your investment in the shopping mall empire would have been worth $174 million (£120m), assuming all the dividends had been reinvested.
1961 – Lowe's: $1,000 invested then is worth $6.2 million (£4.2m) today
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The US home improvement chain went public in 1961 with shares priced at a bargain $12.25 each. Fantastically lucrative over the long haul, 81.63 stocks priced at $1,000 would have turned into 78,365 shares worth $6.2 million (£4.2m) by 2016.
1962 – Coca-Cola: $1,000 invested then is worth $221,445 (£152k) today + dividends
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A classic long-term investment, Coca-Cola is renowned for offering patient investors decent returns. For instance, a $1,000 investment made in 1962 would be worth $221,445 (£152k) in 2016; even more you'd reinvested the dividends.
1963 – American Express: $1,000 invested then is worth $384,000 (£263k) today
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In 1963, Amex was in the midst of a financial scandal and its share price was at a record low. Enter uber-investor Warren Buffet who injected $1 million into the company. If he'd held onto his shares, they would have been worth $384 million (£265m) in 2016.
1964 – Berkshire Hathaway: $1,000 invested then is worth $18+ million (£12.4m) today
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Staying with Mr Buffet, a $1,000 stake in his ridiculously successful investment firm Berkshire Hathaway put down during the final quarter of 1964 would have turned into $18+ million (£12.4m) by 2016.
1965 – McDonald’s: $1,000 invested then is worth $4.1 million (£2.8m) today + dividends
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Notable for its many stock splits, McDonald’s went public in 1965 and hasn't looked back. Back then $1,000 would have got you 44.44 shares at the IPO, which would have grown to 33,046 shares worth $4.1 million (£2.8m) by 2016, even more if you'd reinvested the dividends.
1966 – Winnebago Industries: $1,000 invested then is worth $1.1 million (£752k) today + dividends
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An investment of $1,000 the motor home manufacturer would have snagged 80 shares in 1966. Fast-forward to 2016 and your 80 shares would have turned into 51,200 valued at $1.1 million (£752k) – and that figure doesn't even include the generous dividend payouts.
1967 – Public Bank Berhad: $1,000 invested then is worth $336,000 (£230k) today + dividends
Public Bank
Robust returns aren't limited to stock markets in the West. An investor who purchased $1,000-worth of stock in Malaysia's Public Bank Berhad when it was listed in 1967 would now own 135,400 shares worth $336,000 (£230k), without dividends.
1968 – Flowers Foods: $1,000 invested then is worth $140,000 (£96k) today + dividends
Flowers Foods
Known at the time as Flowers Industries, the American baked goods firm made its IPO in 1968. An investment of 80 shares priced at $1,000 would be worth $140,000 (£96k) today, even more if you'd reinvested the dividends.
1969 – Town Centre Securities (TCS): $1,000 invested then is worth $696,000 (£476k) today + dividends
TCS
This British property company, which was established in 1959, is notable for offering investors incredible returns. If you'd bought $1,000 (£683)-worth of shares in 1969, your holding would have grown to $696,000 (£475,828) by 2016.
1970 – Wal-Mart: $1,000 invested then is worth $9.6 million ($6.6m) today + dividends
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Wal-Mart's remarkable growth since its IPO in 1970 has made some early investors mega-rich, particularly those who held onto their stock. Buying 60.6 shares at the IPO for $1,000 would have turned into a holding of $9.6 million ($6.6m) by 2016, even without dividends reinvested.
1971 – Intel: $1,000 invested then is worth $280,000 (£191k) today + dividends
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Burgeoning information technology companies were a sure-fire bet for long-term investors during the early 70s and Intel was no exception. A $1,000 investment in the company when it went public in 1973 would net you $280,000 (£191k) today.
1972 – Southwest Airlines: $1,000 invested then is worth $2.2 million (£1.5m) today + dividends
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The US airline has rewarded investors with lavish annualized returns of 26% and several stock splits since 1972. An investment of $1,000 in the company that year would be worth just over $2.2 million (£1.5m) in 2016, not including any reinvested dividends.
1973 – Walgreens: $1,000 invested then is worth $584,445 (£400k) today
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Established way back in 1901, drugstore chain Walgreens has enjoyed steady growth throughout the 20th and 21st centuries making for very healthy returns. So 44 shares priced just under $1,000 in 1973, for instance, would have converted into $584,445-worth (£400k) by 2016 with the dividends reinvested.
1974 – Comcast: $1,000 invested then is worth $4.5 million (£3.4m) today
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Cable TV exploded in the 70s and 80s, so it's no wonder shares in Comcast, the world's largest cable company, surged throughout this time. And 471 shares bought for just over $1,000 in 1974 would have transformed into 72,707 shares worth $4.5 million (£3.4m) by 2016 if you'd reinvested the dividends.
1975 – Toronto-Dominion Bank (TD): $1,000 invested then is worth $392,000 (£268k) today
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Listed for trading on the Toronto Stock Exchange, this prosperous Canadian bank has delighted investors with seriously attractive returns since the 70s. So $1,000 invested in 1975 would have turned into $392,000 (£268k) by 2016 had you reinvested the dividends.
1976 – Apple: $1,000 invested then is worth $43.75 billion (£30bn) today
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Apple shares have notched up breathtaking gains over the years. In 1976, early shareholder Ron Wayne sold stock that would be worth $35 billion (£24bn) today for a paltry $800 ($3,400/£2.3k in today's money). And if you'd invested $1,000 at the firm's IPO in 1980, your holding would be worth $300,000 (£205k) today without the dividends reinvested.
1977 – Arsenal Football Club: $1,000 invested then is worth $382,000 (£261k) today
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Soccer fans could snap up shares in the London club for peanuts in 1977. One lucky investor purchased just £45-worth in 1977 and sold them for a very respectable £11,750 ($17k) in 2011.
1978 – Colgate-Palmolive: $1,000 invested then is worth $69,180 (£47k) today
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A $1,000 investment in Colgate-Palmolive in 1978 would have grown to $69,180 (£47k) by 2016 with the dividends reinvested. While not spectacular, the value of CP stock has increased steadily since the 70s.
1979 – Eaton Vance: $1,000 invested then is worth over $2 million (£1.4m) today
Eaton Vance
Since 1980, this little-known investment firm has provided a compound annual growth rate of 25.2%. This means $1,000 invested in Eaton Vance in 1979 would have translated to a holding worth over $2 million (£1.4m) by 2016.
1980 – Wipro: $1,000 invested then is worth $76.2 million (£52m) today
Wipro
Investing in the Indian stock market can pay off very nicely indeed. Buying $1,000-worth of shares in Wipro, one of India's top IT companies, back in 1980 would have increased to an eye-watering 9,600,000 shares worth $76.2 million (£52m) by 2016.
1981 – Proctor & Gamble: $1,000 invested then is worth $35,000 (£24k) today
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A reliable investment, $1,000-worth of Proctor & Gamble shares acquired in 1981 would net you $35,000 (£24k) today if you'd reinvested the dividends – that's a return of 3,407%.
1982 – Bemis: $1,000 invested then is worth $2 million (£1.4m) today
Courtesy Bemis
Packaging maker Bemis isn't the most glamorous of companies but its stock market performance definitely has the wow factor. A thousand dollars invested in 1982 would have bought 1,299 shares in the company, which would have turned into 41,568 shares worth $2 million (£1.4m) by 2016.
1983 – M&T Bank: $1,000 invested then is worth $3.1 million (£2.1m) today + dividends
M&T Bank
It's not hard to figure out why M&T Bank stock is one of Warren Buffet's favorites. Back in 1983, 1,300 shares were priced at $1,000 (£2,400/£1.6k in today's money). Thanks to several stock splits, those 1,300 shares would have turned in 26,000 worth $3.1 million (£2.1m), even without the dividends reinvested.
1984 – UnitedHealth: $1,000 invested then is worth $50,000 (£34k) today
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The Minnesota-based healthcare group went public in October 1984 and its long-term investors have not done too badly at all over the last 32 years. A $1,000 IPO investment would be worth in the region of $50,000 (£34k) in 2016 assuming the dividends had been reinvested.
1985 – Helical Bar: $1,000 invested then is worth $723,000 (£494k) today
Helical Bar
British property investment firm Helical Bar has rewarded early investors with excellent returns. So $1,000 invested in 1985 would have grown to $723,000 (£494,492) by 2016. Across the pond, you would have wanted to buy shares in a firm called Balchem, the best performer on the US stock market over the last 30 years. Its stock price has increased by 107,099% since the end of 1985.
1986 – Microsoft: $1,000 invested then is worth $740,000 (£506k) today
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Microsoft's IPO was made in 1986, with stock available at the bargain price of $21 a share. So $1,000-worth of stock at the IPO would be valued at $740,000 (£506k) today.
1987 – Oracle: $1,000 invested then is worth $646,542 (£442k) today + dividends
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Like Microsoft, information technology firm Oracle went public in 1986 and has offered investors similar bumper returns over the years. In 1987, $1,000 would have bought 50 shares, which would have turned into 16,200 shares worth $646,542 (£442k) by 2016, even without the dividends reinvested.
1988 – Dell: $1,000 invested then was worth $157,000 (£107k) by 2013
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Dell launched its IPO in 1988 and within a few years, the stock was offering first-class returns. A $1,000 investment in 1988 was worth $157,000 (£107k) in 2013, the year founder Michael Dell returned the company to private ownership.
1989 – Hasbro: $1,000 invested then is worth $31,481 (£21.5k) today
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Buying into the world-famous toy company would have been a shrewd plan back in 1989. A holding of 64 shares priced at just under $1,000 would now be worth $31,481 (£21.5k) had you reinvested the dividends.
1990 – Cisco: $1,000 invested then is worth $440,000 (£301k) today
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A slew of IT companies enjoyed remarkable growth during the late 80s and early 90s, including tech giant Cisco. So $1,000 invested in the company at its IPO in 1990 would have turned into $440,000 (£301k) by 2016.
1991 – Qualcomm: $1,000 invested then is worth $125,300 (£85.6k) today + dividends
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A pioneer of 3G and next-generation mobile technologies, Qualcomm made its IPO in 1991 and business has been booming ever since. A thousand bucks would buy you 56 shares in 1991. If you'd held onto them, your holding would now consist of 2,254 shares worth $125,300 (£85.6k), even more if you'd reinvested the dividends.
1992 – Starbucks: $1,000 invested then is worth $230,845 (£158k) today
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The now ubiquitous coffee shop chain was a relatively small-scale firm on the verge of great things when it went public in 1992. Therefore $1,000-worth of shares priced at $17 each that year represent a holding worth $230,845 (£158k) by 2016.
1993 – Infosys: $1,000 invested then is worth $1.6 million (£1.1m) today
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The Indian IT outsourcing company went public in 1993 and lucky investors who snapped up shares at the IPO have had a lot smile about over the years. Buying 714 shares at $1,000 in 1993 would have turned into 91,392 shares valued at $1.6 million (£1.1m) by early 2016.
1994 – Capita: $1,000 invested then is worth $50,000 (£34.2k) today
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Support services firm Capita has been the most outstanding performer on the London Stock Exchange since the early 90s. An investment of just $1,000 that year would be worth around $50k (£34,150) today.
1995 – Monster Beverage: $1,000 invested then is worth $435,018 (£297k) today
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Famed for its surging share price, the company that produces the popular Monster energy drink was crying out for your investment cash back in 1995, with shares priced at just 69¢ ($1.08/75p in today's money) each at one point that year. Taking into account a 2-1 split in 2012, 1,449 shares bought in 1995 for just under $1,000 would now be 2,898 shares worth $435,018 (£297k).
1996 – Yahoo: $1,000 invested then is worth $60,000 (£41k) today
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Yahoo launched its IPO on April 12 1996 and was pretty much king of the internet until the early 2000s. A $1,000 investment ($1,520/£1.1k today) in Yahoo stock in 1996 would now be worth in the region of $60,000 (£41k), not bad given the company's recent setbacks.
1997 – Amazon: $1,000 invested then is worth $440,000 (£301k) today
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The investment opportunity of the year, Amazon went public in 1997 and has since enjoyed remarkable growth, which has been reflected in its ever-buoyant share price. In fact, a $1,000 investment at the IPO would be valued at $440,000 (£301k) today.
1998 – eBay: $1,000 invested then is worth $181,028 (£124k) today + dividends
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Yet another fruitful internet-related investment opportunity, eBay went public in 1998 offering shares priced at $18 a pop. A $1,000 investment at the IPO for 55.55 shares would have grown to 7527 shares at $181,028 (£124k) by 2016, even more if you'd reinvested the dividends.
1999 – Keurig Green Mountain: $1,000 invested then is worth $500,000 (£344k) today
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Dubbed 'the year of the mega-IPOs', 1999 was also the height of the dotcom bubble – not the best year to invest in risky internet firms. This coffee company was a much better bet as $1,000-worth of Keurig Green Mountain shares purchased just before the millennium would be worth almost $500,000 (£344k) today.
2000 – Illumina: $1,000 invested then is worth $17,935 (£12.3k) today
Illumina
Several biotech companies have experienced rapid growth in the 21st century, offering investors enviable returns. Back in 2000, $1,000 would buy you in 62.5 shares in Illumina, 'the Google of genetic testing', at its IPO. Today, those 62.5 shares have multiplied to 125 worth $17,935 (£12.3k), even without dividends reinvested.
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