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The Power of Investing: How $100 in 1972 Grew in 2018

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Discover the growth potential of investing in the S&P 500 index.

description: an abstract image showcasing a graph with a steady upward trend, symbolizing the growth of investments over time without specific company names mentioned.

In 1972, if you had invested $100 in the 500 stocks of the S&P 500 index, you would have embarked on a journey of potential wealth accumulation over the decades. The average stock market return is historically 10%, although it changes from year to year. Returns can vary, but buy and hold is the most reliable strategy for long-term growth.

The S&P 500 calculator below provides both the nominal and inflation-adjusted price and total return (assuming dividend reinvestment) of U.S. stocks. This tool can help investors understand the potential growth of their investments over time.

In recent years, a lot of investor money has been flowing into index funds. Investors seem to love the low-cost nature of index funds, which provide diversification and exposure to the overall market.

If you had bought $100 worth of the S&P 500 index in 1972, by 2018, your investment would have grown significantly. The power of compounding returns over the years would have turned your initial $100 into a substantial sum.

Amazon stock is still 10% below its record close, but bulls say it's only a matter of time before it reclaims its heights. Investing in individual stocks like Amazon can be profitable, but investing in the broader market through index funds can spread out risk and potentially lead to more stable returns.

In a column from July 2018, it was suggested that time travelers purchase $1,000 worth of Berkshire Hathaway (BRK.A) stock in 1975. Warren Buffett's investment vehicle has been a consistent performer over the years, showcasing the power of long-term investing.

Although Walmart surpassed analysts' expectations, the big-box retailer gave a cautious outlook for the fiscal year ahead. This highlights the importance of diversification in an investment portfolio to mitigate risk associated with individual stock performance.

The price of gold fluctuates, but historically over the long term, it trends higher. At the time of writing, the 10-year increase is 55.67%. Investors often turn to gold as a hedge against inflation and market uncertainties.

If a family member had invested $2,000 when you were born, how much do you think you'd have today? With the help of financial experts like Tenpao Lee, professor of finance, you can explore the potential growth of investments over time.

Apple has introduced its newest gadgets, including the iPhone 14. Here's how much you'd have if you invested $1000 into the company a decade ago. Apple's stock performance highlights the growth potential of tech companies in the market.


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