Hindsight is always 20/20, but many times, looking at the past can help you gain an understanding of the future. The stock market is always unpredictable, but some stocks, like the “Magnificent 7,” prove their value over the long term.
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If you had the chance to return to 2014 and invest $1,000 in each of the Magnificent 7 stocks, you’d be thrilled with the result. Read on to find out just how thrilled.
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Magnificent 7 Stocks
With a name like “Magnificent 7,” it’s easy to imagine these stocks have a history of success.
The tech companies Apple, Microsoft, Alphabet, Amazon, NVIDIA, Tesla and Meta Platforms constitute the Magnificent 7 and also make up a large piece of indexes like the Nasdaq 100 (40.5%) and the S&P 500 (29.1%). Each Magnificent 7 stock has had a positive performance over the past 10 years.
Apple (AAPL)
Apple Inc. is a tech giant founded in 1976 by Steve Jobs and Stephen Wozniak. It is a company that has thrived on designing, manufacturing and selling consumer electronics, online services, and computer software. Some of Apple’s most popular products include the Mac, iPhone, iPad, Apple TV, Apple Watch, and, most recently, the Apple Vision Pro. In recent years, Apple has also begun offering various subscription services like Apple Music, Apple TV+, Apple Fitness+, and iCloud services.
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If you reinvested any available dividends, your $1,000 investment in Apple would increase by 905.06%, totaling $10,050.55. After subtracting your initial investment of $1,000, you’d be left with $9,050.55 in profit over the past ten years, according to Stoculator.
Microsoft (MSFT)
Bill Gates and Paul Allen founded Microsoft in 1975. The company started by developing software for early personal computers and evolved into a behemoth that markets personal computers, cloud systems, software, and various applications. Some of Microsoft’s most well-known products and services include the Windows operating system, Microsoft 365 subscriptions, and the search engine Microsoft Bing. The company has also made its presence known in the gaming industry with Xbox, which extends to the system’s hardware and more subscription services like Xbox game pass and cloud gaming.
Over the 10-year period, Microsoft increased by 1,154.27% for a total profit of $11,542.72.
Alphabet (GOOG and GOOGL)
Google creators Larry Page and Sergey Brin started the company in 1998. However, in 2015 they restructured it into Alphabet Inc., making it the parent company of Google and other Google subsidiaries. Alphabet is a multinational tech company that offers a range of Google Services, including Android, Chrome, Gmail, Google Search, and YouTube. Alphabet also offers infrastructure through Google Cloud, specializing in areas like artificial intelligence (AI), analytics, cybersecurity, and databases.
Alphabet saw an increase of 560.77% for a $5,607.68 profit on your initial investment.
Amazon (AMZN)
Amazon began as an online bookstore, founded in 1994 by Jeff Bezos. Over the next 30 years, it evolved into an ecommerce empire and now offers a multitude of products and services from its online marketplace.
Apart from its online and physical stores, Amazon has its own line of consumer electronics, such as the Kindle, Fire TVs and tablets, Ring, and Eero. It offers the subscription service Amazon Prime, which provides shoppers with free shipping and services like Prime Video and Prime Music.
Amazon jumped up by 1,111.98% over the past decade to net $11,119.77 in profit.
NVIDIA (NVDA)
NVIDIA Corp started in 1993 thanks to Jensen Huang, Chris Malachowsky, and Curtis Priem. NVIDIA is a company that focuses on graphics processors, software and hardware products. In the beginning, NVIDIA developed graphics cards for PCs and the video gaming industry. It has since expanded into the realm of AI, machine learning, robotics, augmented reality (AR) and virtual reality (VR).
NVIDIA skyrocketed by 21,496.97% to turn your investment into $204,690.10 of profit.
Tesla (TSLA)
Originally, Martin Eberhard and Marc Tarpenning founded Tesla in 2003. The next year, Elon Musk bought into the company and became a board member, eventually becoming the Chief Executive Officer (CEO) in 2008. Tesla designs, makes, sells, and leases electric vehicles (EV) as well as the Energy Generation and Storage systems that charge the EVs.
Over 10 years, Tesla took a leap of 1,266.16%, netting $12,661.62.
Meta Platforms (META)
Mark Zuckerberg, along with three other Harvard University students, started Facebook in 2004. Zuckerburg is the company’s CEO and changed from Facebook, Inc. to Meta Platforms in 2021. Meta Platforms is the parent company of Facebook, the world’s largest social network, as well as Instagram and WhatsApp. Meta’s revenue mostly comes from selling advertising space, but it has recently begun offering AR and VR products.
Meta Platforms value rose by 677.81%, which amounts to a $6,778.12 profit.
Net Profits
Investing any amount in each of these stocks in May 2014 would mean pulling in quite a lot of profits. When everything is added together, the Magnificent 7 stocks rose by a total of 27,173.02% over the past 10 years, equating to an astounding profit of $261,450.56.
Overlap With FAANG Stocks
The Magnificent 7 stocks overlap with another group of powerhouse stocks, the FAANG stocks. The FAANG bundle includes the five tech giants Facebook (Meta Platforms), Apple, Amazon, Netflix, and Google (Alphabet). If you had invested $7,000 in just these five stocks over the past 10 years while reinvesting available dividends, you still would’ve made out very well. Dividing your funds into $1,400 stakes and subtracting that amount from the end results, you would’ve made:
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Facebook: $9,489.36 (+677.81%)
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Apple: $12,670.77 (+905.06%)
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Amazon: $15,567.68 (+1,111.98%)
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Netflix: $14,720.23 (+1,051.45%)
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Google: $77,850.76 (+560.77%)
Your total profit from a 10-year investment in the FAANG stocks would now equal $130,298.80, an overall increase of 4,307.07%.
Final Take
If you didn’t invest in these stocks back in 2014, these numbers might inspire some regret. However, they underscore how investing in the right stocks can really impact your finances, even if you’re just starting now. With research and patience, anyone with a few extra dollars for investing can grow their money.
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This article originally appeared on GOBankingRates.com: If You Invested $7K in ‘Magnificent 7’ Stocks 10 Years Ago, You’d Have Major Profit Today