The Market's 10 Best Stocks Revealedhttp://www.fool.com/investing/small-cap/2008/04/18/the-markets-10-best-stocks-revealed.aspx Tim Hanson
April 18, 2008
As investors, we want the best stocks for our portfolios.
That's why I look back, at the end of each year, at the best stocks of the previous 10 years to find out what we can learn from them.
Incredibly, the market's 10 best stocks teach a clear lesson -- and it's the same lesson year after year after year.
See the best
Includes only U.S. stocks listed with verifiable stock price histories on major exchanges.
Be the best
And although the retailers from last year's list have dropped from the top 10, they've been replaced by names such as Asta Funding and Green Mountain Coffee Roasters, which drive home the exact same takeaway!
Buy the best
Those were the traits of these 10 best stocks when their remarkable runs began, and it's the same lesson we see over and over again. Ten years ago, Green Mountain was a boutique name from Vermont with more than $40 million in annual revenue. Today, it's a $385 million-per-year business that counts ExxonMobil as a customer.
Even Apple wasn't a big name at the beginning of 1998. Although Steve Jobs had just returned to help restructure the company, it was years away from the iPod or iPhone. Most of the market had lost interest in the stock.
Big ain't the best
Where were they 10 years ago?
They were covering mid- and large caps -- the stocks with enough volume and liquidity to be worth Wall Street's time. But look at how the 10 biggest stocks at the beginning of 1998 performed over the past 10 years (including dividends):