Today I am writing about a hypothetical situation about what if you bought facebook, Google and Amazon stocks 5 years ago? would you have double your money? How much your wealth would have increased in that time. First we need something to compare the growth of these companies against so we will look at stock market index which shows how stock market is doing in general during last 5 years.
S&P 500 in Last 5 years
S&P 500 is a stock market index which reports on stock performance of 500 largest companies in stock market. You can get more information about S&P 500 here. On 2nd Jan 2015 the value was 2058.20 and on 24 Dec 2019 the value is 3,222.60. Let us see the percentage of change in 5 years. It is about 56.57%. This is essentially telling us that if you invested in top 500 companies in stock market your wealth would have increased by 56.57%. Now let us compare if the 3 big tech companies out perform S&P 500 or not.
Facebook stock growth in last 5 years
If you bought Facebook stock on 2nd Jan 2015, You will get one stock in 78.25$. Let us assume you bough Facebook stock with a 10,000$ on that date. You will have 127.8 stocks in facebook. You hold it for 5 years and today 24 Dec 2019 you decide to sell it at a price of 205.12. Your 10,000$ worth of Facebook stock will be about 26000$. So essentially you increased your money by 2.6 times. When we look in terms of percentage it means facebook stock grew by 162.26% Which is more than 3 times the value of S&P 500. Turns out investment in facebook would have been really good for you.
Google Stock during last 5 years
Google stock was trading at 529.55 on 2nd Jan 2015 and on 24 Dec 2019 it is trading at 1,344.43. So essentially it means if you bough Google with 10,000$ you would have made about 25000$. So a increase of about 2.5x times. In percentage terms it means about 153.88% increase. So Yes you will more than double your money with Google too.
Apple stock in last 5 years
Lastly let us look at apple which is world’s 2nd largest company as of right now. Apple stock was worth 109.33$ on 2nd Jan 2015. Today it is trading at 284.27$. So if you used your 10,000$ to buy Apple stock in Jan 2015. you will have about 26000$. About the same amount as facebook 2.6 times. In terms of percentage it is a gain of 160%.
In summary we can see that if you bought stocks of any of these companies 5 years back your money would have been about 2.5 to 2.6 times. and your growth would have been about 3 times higher as compared to S&P 500 market index growth. So these companies were a really good investment in 2015. are these companies a good investment today? Probably yes. If you will like to start buying stocks your can sign up on etoro.
You can also checkout my guide on signing up and investing on etoro.
Here is also a list of stocks that I think are a good long term option to buy on etoro.
Let me know what you think about this article in comments below and remember to invest safely.
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I am Waqar, I write about many things. I share ideas that I think could have done something good for society. You can connect with me on facebook to share ideas. I will look forward to talking to you soon.