If You'd Invested $10,000 In General Electric Stock 10 Years Ago, Here's How Much You'd Have Today | Old North State Wealth News
Connect with us


If You’d Invested $10,000 in General Electric Stock 10 Years Ago, Here’s How Much You’d Have Today



So you’re wondering how much money you’d have now if you’d invested $10,000 in the stock of General Electric (NYSE: GE) — now doing business as GE Aerospace — 10 years ago. That’s a fine question, and the answer, according to theonlineinvestor.com is: $13,947 for the period from May 1, 2014, to May 1, 2024. If that’s sounding pretty good to you, know that it really isn’t. It reflects an average annual gain of about 3.4%, over a period when the S&P 500 index of 500 of America’s biggest and best companies averaged roughly 11.4%. (The S&P 500 would have turned your $10,000 into $29,407!)

If you had happened to reinvest your dividends from General Electric into more shares of General Electric, the picture gets better — a little: Your average annual gain would have been 4%, bringing your stake to a value of $14,793 after 10 years. (Of course, reinvesting dividends from an S&P 500 index fund would have got you an average annual gain of roughly 12.25%, totaling $31,817 after 10 years.)

You could have done wildly better in many other stocks, too. Recent superstar Nvidia, for example, averaged 69% annually over the period and would have turned your $10,000 into $1.9 million with dividends reinvested. Even a less mind-blowing stock, such as Lowe’s, averaged 19% (without reinvesting dividends), turning $10,000 into $54,123.

A key takeaway here is that if you’re ever not confident in whatever stock(s) you’re holding or thinking of holding, consider just opting for a simple, low-fee index fund, as it can help you build wealth powerfully over the long run without having to pick individual stocks, some of which will inevitably be losers. And don’t expect to run across performances such as Nvidia’s recent past very often, either.

General Electric used to be a well-respected blue chip stock — it was actually one of the 12 stocks in the Dow Jones Industrial Average when the index launched in 1896. It’s telling that GE was dropped from the Dow Jones in 2018, as it had been struggling and shedding many of its divisions, such as finance, healthcare, and even light bulbs — retaining the aerospace operations. (It was replaced in the Dow by Walgreens Boots Alliance).

Should you invest $1,000 in GE Aerospace right now?

Before you buy stock in GE Aerospace, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and GE Aerospace wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $544,015!*

Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.

See the 10 stocks »

*Stock Advisor returns as of May 6, 2024

Selena Maranjian has positions in GE Aerospace and Nvidia. The Motley Fool has positions in and recommends Nvidia. The Motley Fool recommends Lowe’s Companies. The Motley Fool has a disclosure policy.

If You’d Invested $10,000 in General Electric Stock 10 Years Ago, Here’s How Much You’d Have Today was originally published by The Motley Fool

Read the full article here


Copyright © 2022 ONSWM News. Content posted on the Old North State Wealth News page was developed and produced by a third party news aggregation service. Old North State Wealth Management is not affiliated with the news aggregation service. The information presented is believed to be current. It should not be viewed as personalized investment advice. All expressions of opinion reflect the judgment of the authors on the date the articles were published. The information presented is not an offer to buy or sell, or a solicitation of any offer to buy or sell, any of the securities discussed.