In contrast, the same $1,000 invested 20 years ago in the S&P 500 would be worth a bit little than $7,300 over the same period.
Dan Burrows for Kiplinger:
Even after gaining nearly 19% for the year-to-date – vs. a 5.8% rise in the S&P 500 – Apple stock is still some 17% below its record close of early 2022. In the process, Apple’s market capitalization has dropped to $2.45 trillion from $2.97 trillion – a loss of more than a half-trillion dollars in shareholder value.
That’s painful for anyone who came to the Apple party late, but it’s tough to have much pity for truly long-time shareholders. After all, they’ve enjoyed almost incomparable returns over the past few decades.
From January 1990 through December 2020, AAPL stock created $2.67 trillion in shareholder wealth, or an annualized dollar weighted return of 23.5%, according to an analysis by Hendrik Bessembinder, a finance professor at the W.P. Carey School of Business at Arizona State University.
Indeed, per Bessembinder’s findings, which account for a stock’s increase in market value adjusted for cash flows in and out of the business and other adjustments, Apple is one of the 30 best stocks of the past 30 years…
Over the past two decades, Apple stock generated a total return (price change plus dividends) of more than 69,000%, or more than 38% annualized.
