Battle of the Vices

What stocks do you think have been the best performing over the past ten years?

If you asked a room of people, I imagine you’d hear great answers like Amazon, Apple, Walmart, Google and Facebook.  All of these companies have done tremendously well, yet none of them have outperformed Dominos Pizza (DPZ) which is up over 4,000% in the past 10 years.  That is mind blowing to me! I see their commercials all the time, yet I couldn’t even tell you if there was one near me.

Now let’s take one more step back in time to one of the best performing stocks of the past twenty years.  Again, this is a company whose products I see every time I am at the gas station and grocery store, yet never would have guessed its rocketship performance. Drum roll…Monster Energy (MNST). Monster Energy is up over 64,000% which equates to roughly a 38% compounded annual rate of return since 2003.


Let’s come back  to the reality that these types of returns are far from the norm in the world of investing.  Identifying these companies before they become a high flier is extremely difficult.  On top of that, you would have to endure extreme drops in value like Domino’s which fell over 80% in the great Financial Crisis of 2008 and Monster Energy which fell 70%.  Despite these challenges, the fact that you COULD have owned them and earned that rate of return is incredible.  These are not no name brands waiting to be discovered by a Wall Street hedge fund. These are companies hiding in plain sight and available for anyone to purchase.  So if you get bored easily at the grocery store, you now know that you’re really on a treasure hunt for a fortune, not just the low fat cottage cheese.

Happy Friday!

 (Disclaimer: This post is not a recommendation to buy any of the stocks mentioned and is for educational purposes only)