Finance
If You Invested $10,000 In General Electric Stock Ten Years Ago, Here’s How Much You’d Have Today
So you’re wondering how much money you would have now if you invested $10,000 in the stock of General Electric (NYSE: GE) — now doing business as GE Aerospace — 10 years ago. That’s a great question, and the answer, according to theonlineinvestor.com, is: $13,947 for the period from May 1, 2014 to May 1, 2024. If that sounds good to you, know that it actually doesn’t. It reflects an average annual gain of approximately 3.4%, over a period in which the S&P500 index of 500 of America’s biggest and best companies averaged about 11.4%. (The S&P 500 would have turned your $10,000 into $29,407!)
If it had happened to you reinvest your dividends by General Electric If you buy more shares of General Electric, the picture improves – a little: Your average annual gain would have been 4%, which would bring your stake to a value of $14,793 after 10 years. (Reinvesting dividends from an S&P 500 index fund would, of course, have given you an average annual gain of about 12.25%, for a total of $31,817 after 10 years.)
You could also have done much better in many other shares. Recent superstar Nvidiafor example, averaged 69% per year over the period and would have turned your $10,000 into $1.9 million with dividends reinvested. Even a less stunning share, like Lowe’s19% on average (without dividend reinvestment), turning $10,000 into $54,123.
An important lesson here is that if you ever feel unconfident in the stocks you hold or are considering holding, you may want to consider simply opting for a simple index fund with low fees, as this can help you build wealth in powerful ways . in the long run without having to pick individual stocks, some of which will inevitably be losers. And don’t expect to often encounter versions like Nvidia’s recent past.
General Electric used to be a respected blue chip stock. It was actually one of twelve stocks in the Dow Jones Industrial Average when the index launched in 1896. Significantly, GE was delisted from the Dow Jones in 2018 as it had fallen on hard times and divested many of its divisions such as financial, healthcare and even light bulb sectors, while retaining its aerospace business. (It was replaced in the Dow by Walgreens Boots Alliance).
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Selena Maranjian has positions in GE Aerospace and Nvidia. The Motley Fool holds positions in and recommends Nvidia. The Motley Fool recommends Lowe’s Companies. The Motley Fool has one disclosure policy.
If You Invested $10,000 In General Electric Stock Ten Years Ago, Here’s How Much You’d Have Today was originally published by The Motley Fool
