The All-Decade TeamToday I want to look back at the best-performing stocks of the last 10 years. Even if only to show that there will be a light at the end of the coronavirus recession tunnel too. Many of these are now household names. They're icons of the changing economic and consumer landscape of the past decade. But some of these companies have been under-the-radar outperformers. They've posted life-changing returns without mainstream name recognition. Here they are... There's probably little surprise that the video streaming giant Netflix (Nasdaq: NFLX) is the all-star of our all-decade team. Shares were trading for less than $10 in December 2009. E-commerce giant Amazon (Nasdaq: AMZN) also gets a head nod for being on the list. The only eyebrow-raiser here might be that it didn't rank higher. But what was interesting when looking back at the best performers of the past 10 years was finding that the list wasn't dominated by Silicon Valley darlings. Many stocks on the list are biotechs. Heart pump maker Abiomed (Nasdaq: ABMD) and Invisalign manufacturer Align Technology (Nasdaq: ALGN) scored big for investors. And in an era of Instagram models and YouTube celebrities, makeup brand Ulta Beauty (Nasdaq: ULTA) shares scored a 10-bagger. Though I want to draw attention to those names not on every investors' lips. Many people unfairly find bonds boring. They're more than just the faves of income seekers. And shares of bond trading platform MarketAxess Holdings (Nasdaq: MKTX) have been far from yawn-worthy. The company controls 80% of all electronic trades of investment-grade corporate bonds. It's the biggest fish in the pond. It also participates in high-yield, emerging market and European bond trading. It's one way investors have earned quadruple-digit returns on bonds during the past decade. Then there's the "plain Jane," TransDigm Group (NYSE: TDG). The Ohio-based company manufactures a wide array of aircraft components. That's not as fascinating as electric vehicles or $500 flamethrowers, but slow and steady wins the race. And TransDigm's massive 2,000% return over the past decade is thanks in part to enormous dividend payouts of $30, $22, $24, $25 and $12.85 during that stretch. Finally, in an era of renting rather than owning, United Rentals (NYSE: URI) has thrived. The company has more than 1,170 locations across North America. For construction and industrial businesses, it rents everything from earthmovers to power tools to drones. And that's been the key to United Rentals' success. Boring Is BestIt's been a little more than a decade since the end of the financial crisis. And just look at the gains you could have captured over that time frame. With history as our guide, we know that solid companies will emerge from today's recession with the wind at their backs. Because looking back at the top 10 stocks of the past decade proves one thing... A boring, no-nonsense business will always offer impressive returns over the long haul. Here's to high returns, Matthew P.S. Just imagine if you had known in 2009 that Netflix would be the top performer of the decade. What would you be doing with that money now? Well, my colleague David Fessler said he's identified what the next "Stock of the Decade" will be. The company is currently in the process of making partnerships with all the top U.S. corporations. It has deals in place with Walmart, Google, eBay, Apple, Staples, FedEx, Safeway, Home Depot, Macy's, AT&T, Honda, Yahoo, Verizon and more. Basically, this could be just like investing in Netflix 10 years ago! For more details on the "Stock of the Decade," click here. | 
No comments:
Post a Comment