Stocks and Investing
Stocks and Investing
The Surprising Thing That the 5 Best Stocks of the Past Decade All Have in Common
- You would think that about half the stocks in the S&P 500 do better than average in any given year. One would expect a balanced distribution between superior and inferior market performers. The reality is that the exact percentage moves up and down in real time.
The article from MSN Money discusses a common characteristic among the top five performing stocks over the past decade, which includes companies like Nvidia, Monster Beverage, and others. Surprisingly, these stocks all had relatively low price-to-earnings (P/E) ratios at the beginning of their significant growth periods. Despite their high growth rates, these companies were not initially seen as expensive by traditional valuation metrics. This insight challenges the common investment wisdom that high growth stocks must come with high valuations. Instead, these stocks were undervalued or reasonably priced at the start, suggesting that investors might find substantial returns by looking for growth companies with lower P/E ratios, which could be overlooked by those focusing solely on high P/E growth stocks.
Read the Full MSN Article at:
[ https://www.msn.com/en-us/money/top-stocks/the-surprising-thing-that-the-5-best-stocks-of-the-past-decade-all-have-in-common/ar-AA1wwmqf ]
Read the Full MSN Article at:
[ https://www.msn.com/en-us/money/top-stocks/the-surprising-thing-that-the-5-best-stocks-of-the-past-decade-all-have-in-common/ar-AA1wwmqf ]