Worldwide Success

Assuming that history will repeat itself, if you invest $5,000 in the 25 top performing stocks you will be a millionaire in less than 25 years!  What is the catch?  We are not talking about today’s top performing stocks.  We are talking about the top performing stock in the next 25 years.  A quarter of a century ago if you had a crystal ball and had invested $200 in each of the top 25 performing stocks, today you would have $1,370,000!

If you are curious to know what great stocks you may have missed, here is a list of the top 25 performing stocks and their corresponding percentage growth in the last 25 years as reported in the USA Today:

1. Franklin Resources - 65,224%
2. Danaher - 47,913%
3. Eaton Vance – 38,444%
4. UnitedHealth – 37,672%
5. Cisco Systems - 33,632%
6. International Gaming Technology - 33,436%
7. Biomet - 30,531%
8. Microsoft – 29,266%
9. Best Buy - 28,703%
10. Oracle – 28,535%
11. Stryker – 25,383%
12. Countrywide – 24,160%
13. Expeditors International – 23,860%
14. Home Depot – 23,845%
15. Dell – 23,048%
16. Robert Half – 21,170%
17. Credo Petroleum – 20,180%
18. Adobe Systems – 19,989%
19. Precision Castparts - 19,437%
20. Berkshire Hathaway – 19,424%
21. Smithfield Foods – 19,414%
22. Paxar – 18,923%
23. Time Warner – 18,158%
24. Paychex – 17,920%
25. Harley-Davidson – 17,808%

Obviously looking back in the rear view mirror is much easier than looking forward.  In order to achieve the results above not only would you have needed the fortitude to select these stocks before they became household names, you would also have had to hang on to these stocks even when their prospects were bleak.  Today they are considered super stocks, but back in the early days their future prospects were not so clear.  Oracle for instance had a near death experience during this 25 year period.

If you are like most people, guessing the next 25 top performing stocks in the next 25 years is nearly impossible.  Your best shot is probably to invest in a few potential super stocks and, if you have some luck, you may just find one that becomes a top performer.  How do you go about finding such a gem?  Perhaps you can start by looking for the next megatrends that will drive the growth of the next super stocks.  In the article Megatrends-Based Investment Ideas we share some potential areas that you may want to investigate.   You probably have observed other magatrends yourself that may become a good investment theme.

Once you have identified a good investment theme you should follow the advice of those that have already succeeded.  In the article Achieve Success with Your Investments, we share some advice from one of the most successful investment families in America.  Notice that the very first advice in that list is to set realistic expectations.  Therefore, you shouldn’t expect to repeat the spectacular return of any of the stocks listed above.  Historically stocks have retuned on average 10-11% per year.  At this level of return, you can expect to double your money about every 7 years.

So, with an average return, you should expect your $5,000 investment to be worth somewhat less than $80,000 in 25 years.  This is still a very good return on your investment.  But if you are looking to become a millionaire in the next 25 years you will probably need to invest more than $5,000.

Unless of course you are one of the lucky few who can find a super stock and will hold it for the entire period.

Download a Free Copy of The Million Dollar Interview with Self-Made Millionaire Adam Khoo

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