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Behold the power of hindsight.
Analysts at Bespoke Investment Group, in a Wednesday note, rounded up the stocks in the large-cap Russell 1000 index
RUI,
that meet stock-investing guru Peter Lynch’s definition of a “10 bagger” — one that delivers a return of 10 times, or 1,000%, on its initial purchase price.
Looking back over the last decade, the exercise, which looks at performance since April 12, 2013, produced a list of 33 stocks, included in the tweet below:
Over the same 10-year stretch, the S&P 500
SPX,
tracking ETF
SPY,
saw a return of 211%, they said. The Dow Jones Industrial Average
DJIA,
tracking ETF
DIA,
delivered a cumulative return of around 181% over the same stretch, according to FactSet.
Topping the list is chip maker Nvidia Corp.
NVDA,
with a total return of 8,833%. Nvidia was followed by electric-vehicle maker Tesla Inc.
TSLA,
at 6,304% and then Plug Power Inc.
PLUG,
at 5,477%.
Bespoke noted there were 16 technology stocks on the list, the most of any sector.
OK, so what should you do with that information?
“Stocks that are already up 1,000%+ over the last 10 years seem unlikely to repeat that over the next 10 years,” the Bespoke analysts wrote. “The obvious next question is: which stocks will be 10-baggers over the next 10 years? As Peter Lynch instructed, you’ll have to do your research!”
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