2024-12-26 09:05:00 ET
You would think that about half the stocks in the S&P 500 do better than average in any given year. One would expect a balanced distribution between superior and inferior market performers.
The reality is that the exact percentage moves up and down in real time. And generally speaking, only around 20% of the constituents of the S&P 500 outperform the market average. That's why finding a winner is such a big deal.
According to MacroTrends, the five best stocks of the past decade are Nvidia (NASDAQ: NVDA) , AMD (NASDAQ: AMD) , Camtek (NASDAQ: CAMT) , Fair Isaac (NYSE: FICO) , and Tesla (NASDAQ: TSLA) . These stocks have compound annual growth rates between 40% and 75%. On the low end, a $10,000 investment in Tesla 10 years ago is worth $290,000 today. On the high end, a $10,000 investment in Nvidia back then is worth nearly $2.7 million now.