This Tech Stock Could Turn $1,000 Into $18,000 in 21 Years
- Finance
ThePostMaster- 0
- 4 minutes read
Alphabet could achieve that even if it grows at a far slower pace than its historic average.
Since its August 2004 initial public offering, Alphabet‘s (GOOG 2.16%)(GOOGL 1.89%) stock has increased in value by more than 133 times. Its compound annual growth rate has been over 25% during those 21 years, which is as impressive as it gets.
I don’t foresee Alphabet maintaining that average over the next couple of decades, but even if we knock over 10% off its growth rate and assume that it averages 15% annual returns over the next 21 years, a single $1,000 investment made today could grow to be worth over $18,000 in that time.
GOOGL data by YCharts.
Here’s how much a one-time $1,000 investment would grow into, assuming it maintains a 15% compound annual growth rate.
| Years Invested | Investment Value |
|---|---|
| 10 | $4,045 |
| 15 | $8,137 |
| 20 | $16,366 |
| 21 | $18,821 |
| 25 | $32,918 |
Calculations by author. Values rounded to the nearest dollar.
Past results don’t guarantee future performance, so I don’t want to give the impression that this is a given for Alphabet. Averaging 15% annual returns for two-plus decades will be hard for any company, especially one that is already valued at over $4 trillion. But I believe that Alphabet has all the tools to be a long-term portfolio staple. If it keeps innovation at its core, it’ll be in good shape.
Stefon Walters has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet. The Motley Fool has a disclosure policy.
