S&P 500 stock has the highest return over the past 20 years

Ty Gibbs, the driver of the #54 Monster Energy Toyota, walks onstage during driver intros before the NASCAR Cup Series Xfinity 500 at Martinsville Speedway. This image is captured by Jonathan Bachman from Getty Images Sport.

Attention investors, let’s talk about an important principle: past performance is not an assurance of future results.

Keep in mind that just because a particular investment has recently increased in value, it doesn’t guarantee continued growth. Also, if one segment of the market has been outperforming others, it doesn’t guarantee the trend will persist.

For investors seeking knowledge, however, past results can help shape your investment strategy, with the advantage of hindsight.

Consider major stock success stories over the last two decades. Guess which household company has achieved the highest total return? Apple? Nvidia? Tesla? Surprisingly, it’s Monster Beverage, topping the S&P 500 with the highest 20-year return.

Tillinghast acquired Monster for $4 a share, taking into account stock splits, today costing $56. However, the company he invested in back then looked nothing like it does today.

“I bought Monster Beverage because I liked that they were trying an energy drink,” he says. “I like companies that try a lot of experiments; I think Monster is very innovative that way.”

Even if you believe in a company’s financial health and long-term prospects, you still have a couple more things to do to follow Tillinghast’s lead. One is to actually hold for the long term.

“You have to have above-average patience when you think something good is happening,” he says.

Tillinghast also advises constantly reevaluating your thesis on stocks you like and increasing your position, given they should make up a relatively small percentage of a diversified portfolio.

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