As we reach the end of the decade, we are presented with the perfect opportunity to look back on some of the most successful stocks of the past 10 years. Reflecting on what companies performed well can give us direct insight into making better investment decisions in the future. Thinking through questions like “Why did these companies perform so well?” and “What are companies that are similarly positioned for success in the coming decade?” is a great way to get a head start with your investment goals for the coming years.
The top 5 performing S&P 500 stocks of the past decade is a list with a few familiar names as well as some companies that might be flying under the radar for most retail investors. It’s amazing to think about where the market was 10 years ago and just how far we have come as our nation emerged from a serious financial crisis. The next decade is sure to bring some surprising successes as well, but before we look forward let’s take a moment to admire some of the best performers from the last decade. Below, we are going to walk you through the top 5 performing S&P 500 stocks of the past decade and aim to figure out why they were so hot.
- Netflix (NFLX)
The number one performing stock of the past decade is a company that you are probably already using on a regular basis. Netflix is one of the pioneers of streaming video service and its stock price has gained 3726% as of Dec 13th, 2019. This company is a perfect example of how disruptive technology can take the market by storm. When you try to think about how Netflix became such a successful company, you need to consider a major decision that changed their entire business model. When Netflix pivoted from sending out physical DVDs to customers in the mail to focusing on a streaming platform with original content, they made one of the smartest moves possible. It’s a great example of how recognizing new and exciting technologies that can impact our everyday lives leads to huge returns.
- MarketAxess Holdings (MKTX)
Number two on our list is MarketAxess Holdings, a financial services company that is far from a household name. This company is the leader in online corporate bond trading and returned a whopping 2770% over the last ten years as of Dec 13th, 2019. This is another example of a company that found a unique market need and capitalized on it. We have been able to trade stocks online for quite a long time, but online bond trading was something that simply had not been perfected until MarketAxess came along. It will be interesting to see the performance of bonds in the coming years and how MarketAxess will be impacted.
- ABIOMED (ABMD)
The third best performing S&P 500 stock over the last decade is a health care equipment and supplies company. They are most well known for creating the world’s smallest heart pump, called Impella. The company’s stock price has taken a hit in the last year, but the 10-year performance of this company is nothing short of staggering with gains of 2009% as of Dec 13th, 2019. It will be interesting to see how they perform in the coming years and if they can continue creating innovative healthcare products.
- Broadcom (AVGO)
With a whopping gain of 1983% over the past decade as of Dec 13th, 2019, Broadcom is a company that has helped its investors have something to smile about for quite a while now. This massive semiconductor company owes a lot of it’s an amazing performance to the technological trends that have dominated the 2010’s. Cell phones, cloud data centers, smartphones, computers, and tablets all rely on semiconductor chips to function, so it’s no wonder why this company has performed so well. As technology becomes more and more integrated into our daily lives, it will be interesting to see if Broadcom can continue its red hot performance in the coming years.
- Regeneron Pharmaceuticals (REGN)
There were several pharmaceutical companies that enjoyed amazing stock performance over the last decade, by Regeneron might just be best in class. With a whopping return of 1827% over the past decade as of Dec 13th, 2019, Regeneron went from lesser-known mid-cap stock to market capitalization leader in a matter of years. This company focuses on producing health issues related to the eyes, skin, and inflammation.
Were you lucky enough to own one of these stocks over the past decade? We hope so! Remember that there are new opportunities to be found in the market every single day, so if you missed out on these hot stocks you can always try to find the next big thing with a little hard work and dedication.
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