So you wonder how much money you would have today if you had invested $10,000 in stocks? General Electric (NYSE:GE) — now doing business as GE Aerospace — 10 years ago. That’s a good question, and the answer, according to theonlineinvestor.com, is: $13,947 for the period May 1, 2014 to May 1, 2024. If that sounds pretty good to you, know that it really isn’t. . It reflects an average annual gain of around 3.4%, over a period where the S&P500 the index of America’s 500 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 Since General Electric By investing more General Electric stock, the situation improves 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 given you an average annual gain of about 12.25%, totaling $31,817 after 10 years.)
You could have done much better in many other titles as well. Recent superstar Nvidia, for example, achieved an annual average of 69% over the period and would have turned your $10,000 into $1.9 million with dividends reinvested. Even a less breathtaking title, like Lowesaveraged 19% (without reinvesting dividends), turning $10,000 into $54,123.
A key point to remember here is that if you ever don’t feel confident in the stocks you hold or plan to hold, simply consider opting for a simple, low-fee index fund, as it can help you build a powerful heritage over more than a year. over the long term without having to select individual stocks, some of which will inevitably lose money. And don’t expect to encounter performance like Nvidia’s recent past very often, either.
General Electric was once a well-respected blue-chip stock — it was actually one of 12 stocks in the Dow Jones Industrial Average when the index launched in 1896. It’s telling that GE was kicked out of the Dow in 2018, as it had struggled and eliminated many of its divisions, such as finance, healthcare and even light bulbs, retaining aerospace operations. (It was replaced in the Dow by Walgreens Boot Alliance).
Should you invest $1,000 in GE Aerospace right now?
Before buying GE Aerospace stock, consider this:
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