Individual Stocks Vs the Overall Market

2019 was a great year for the stock market, as it reached record highs and continued the longest bull-run in its history. If you have a portfolio it hopefully did very well for you. Meanwhile, here are a few famous brands whose stocks did much better than the overall market:

  • S&P 500 30% 30%
  • Nasdaq 39% 39%
  • Chipotle 63% 63%
  • Target 71% 71%
  • Apple 79% 79%
  • Shopify 140% 140%
  • Roku 206% 206%

2018, however, wasn’t a very good year for the stock market. The S&P 500, comprised of blue-chips and other “safe” stocks, lost 6%. Your portfolio probably suffered too, particularly if it focused on index funds. Still, there were some stocks that did very well, and could’ve made up for the lost progress of your 401(k) or other fund.¬† Here are some you may recognize:

  • S&P 500 -6% -6%
  • Nasdaq -4% -4%
  • Netflix 39% 39%
  • Chipotle 49% 49%
  • Lululemon 54% 54%
  • TripAdvisor 57% 57%
  • Advanced Auto Parts 80% 80%

2017 was more similar to 2019 than 2018, but again, some famous companies greatly exceeded the overall market:

  • S&P 500 18% 18%
  • Nasdaq 28% 28%
  • McDonald’s 45% 45%
  • Netflix 60% 60%
  • WWE 68% 68%
  • Activision Blizzard 74% 74%
  • Ferrari 90% 90%

The point is not to stay away from broader funds and strictly stock pick. You’re not always going to pick the right stocks and in a down year, even some very good companies struggle to get much return. But you also can’t be better than average if you just invest in the average. Every percentage point makes a difference, and with the power of compound interest as strong as it is, over the long-term that difference could be huge. With discipline and the right information, you can¬†pick winning stocks and reap the massive rewards that come with them.