Can you guess the best performing stock since 1925?

[kranky]

This stock has generated an average ANNUAL return of 17% over the last 80 years, and no other stock has done better.

Since 1957, when the S&P 500 was established, the average ANNUAL return has been around 20%. Just to put it in perspective, a 20% annual return turns $1,000 into a $1,000,000 in 35 years.

Can you guess what company it is?

(return = price change + dividends).

 

[DainBramaged]

no

 

[FoBoT]

general electric ?

 

[laurenlex]

The company that invented the operating system for the typewriter?

 

[DnetMHZ]

Phillip Morris

 

[KLin]

I cheated 😱.

 

[KLin]

Originally posted by: DnetMHZ
Phillip Morris

So did you. 😛

 

[kranky]

Originally posted by: DnetMHZ
Phillip Morris

WINNAR! Nicely done.

 

[DnetMHZ]

Originally posted by: KLin

Originally posted by: DnetMHZ
Phillip Morris

So did you. 😛

I did no such thing 😛

 

[chambersc]

35 years to earn $1mill is too long of a wait for me.

 

[KLin]

Originally posted by: chambersc
35 years to earn $1mill is too long of a wait for me.

That's a good retirement fund for a middle class couple.

 

[jdub1107]

Originally posted by: kranky
This stock has generated an average ANNUAL return of 17% over the last 80 years, and no other stock has done better.

Since 1957, when the S&P 500 was established, the average ANNUAL return has been around 20%. Just to put it in perspective, a 20% annual return turns $1,000 into a $1,000,000 in 35 years.

Can you guess what company it is?

(return = price change + dividends).

Yea, I think I just read that in a TMF article regarding Roth IRAs.

 

[drnickriviera]

Man that's a nice dividend. 4.5%

 

[God On Alcohol]

i hate stocks...

 

[Cashmoney995]

I just invested in a variable life policy (im 19) and if I continue to purchase insurance later on, I won't have to undergo a medical check, and in about 25 years itll be worth 3.5 million. Right now im payin 76$ a month.

 

[iamwiz82]

Originally posted by: Cashmoney995
I just invested in a variable life policy (im 19) and if I continue to purchase insurance later on, I won't have to undergo a medical check, and in about 25 years itll be worth 3.5 million. Right now im payin 76$ a month.

Uhh... That seems... high...

@20% interest that's only $475,000 in 25 years.

 

[Tom]

Google.

 

[KoolDrew]

Originally posted by: DainBramaged
no

 

[Maetryx]

I read the article about the incoming Federal Reserve Chairman and that is where I found out about Philip Morris (now the Atria Group, but the stock symbol is still MO). Apparenlty, the incoming Fed Chairman holds one stock and that is the one.

 

[kranky]

Originally posted by: Cashmoney995
I just invested in a variable life policy (im 19) and if I continue to purchase insurance later on, I won't have to undergo a medical check, and in about 25 years itll be worth 3.5 million. Right now im payin 76$ a month.

I don't know any more about your situation than what's in the above post, but I'm confident that the chances of that happening are very, very slim. I'm sure that's what they told you, but those people have a tendency to either exaggerate the facts, or leave out important and pertinent information.

Variable life isn't a real good idea. It combines overpriced insurance with an underperforming investment component.

 

[mooncancook]

Originally posted by: DnetMHZ
Phillip Morris

cool! I own 50 shares. I'm going to be rich!

 

[DaveSimmons]

Originally posted by: kranky

Originally posted by: Cashmoney995
I just invested in a variable life policy (im 19) and if I continue to purchase insurance later on, I won't have to undergo a medical check, and in about 25 years itll be worth 3.5 million. Right now im payin 76$ a month.

I don't know any more about your situation than what's in the above post, but I'm confident that the chances of that happening are very, very slim. I'm sure that's what they told you, but those people have a tendency to either exaggerate the facts, or leave out important and pertinent information.

Variable life isn't a real good idea. It combines overpriced insurance with an underperforming investment component.

Listen to kranky! Do some Googling, but if I recall correctly Attorney General offices in serveral states have gone after companies and agents for presenting these policies as investments rather than insurance.

If you research a bit, you might find the expected return is much lower, and that you would be (much) better off with investing in stock index based mutual funds.

If so, you may be able to get out of this investment either by them having a reasonable termination clause or if necessary by contacting your state's AG office or insurance commisioner's office.

 

[alkemyst]

Originally posted by: chambersc
35 years to earn $1mill is too long of a wait for me.

It's from $1000...stack that and profit.

A 17-20% sure thing (not saying this still is, but I am betting it ain't going to be shabby) is a godsend for those with investment cash to burn.

 

[mercanucaribe]

Is it the Get A Life stock?

 

[cyclistca]

Originally posted by: Cashmoney995
I just invested in a variable life policy (im 19) and if I continue to purchase insurance later on, I won't have to undergo a medical check, and in about 25 years itll be worth 3.5 million. Right now im payin 76$ a month.

I hate to rain on your parade but that's a horrible investment. Go get yourself a book on investing.

1 - Unless you have a spouse their is not reason to even have life insurance
2 - Term life in the long run is still cheaper
3 - Dedicated investment vehicle will always perform better then life policies.