Please ensure Javascript is enabled for purposes of website accessibility

What Will You Regret Not Buying in 20 Years?

By Selena Maranjian – Updated Nov 10, 2016 at 6:07PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Can Selena Maranjian make you cry?

Feel like crying over missed opportunities? Check out the following returns for some stocks over the past two decades:

Company

Average Annual Return

EMC (NYSE: EMC)

29%

Expeditors International (Nasdaq: EXPD)

21%*

Danaher (NYSE: DHR)

18%

Intel (Nasdaq: INTC)

17%

Apple (Nasdaq: AAPL)

15%

Wal-Mart (NYSE: WMT)

13%

ExxonMobil (NYSE: XOM)

13%

Target (NYSE: TGT)

13%

S&P 500

5%

Source: Yahoo! Finance. *Over the past 19 years.

A $5,000 investment in Target 20 years ago would be worth nearly $60,000 today. The same investment in EMC would be nearly $700,000! Truly, one stock can change everything.

So, why didn't you buy them 20 years ago? Why aren't these amazing returns yours? Why isn't your portfolio home to a few millionaire-maker stocks?

What stopped you?
There are lots of reasons you might not have bought these companies 20 years ago. Maybe you weren't yet awake to the promise of the stock market. (I know I wasn't.) Maybe you didn't have money to invest, even if you wanted to. But even if you wanted to invest and had the means to do so, you probably still didn't buy these companies for your portfolio. Why?

Well, with some of them, you didn't expect them to keep generating strong returns. With others, though, you probably didn't see their promise -- because you weren't imagining a future very different from the present.

You weren't appreciating that all of America would welcome a diversified discount retailer, or that the business of making computer innards would be so profitable. You weren't aware of how critical electronic storage would be in our modern age. You certainly never imagined an iPod, let alone how popular it would become.

Many of these companies succeeded in large part because they changed the status quo and broke the rules about "how things are done" along the way. Wal-Mart, for example, opened stores in rural areas, where conventional wisdom said they couldn't succeed.

And now, when such innovations are apparent to even the dimmest of us, those companies are household names. Their very ubiquity means they won't be maintaining those stratospheric growth rates going forward, because now they're established. They may still serve your portfolio well, but they aren't likely to blow its doors off anymore.

Don't kick yourself
But even though these companies are well past their rule-breaking stage, there are a bunch of small, growing ones poised to do the same thing -- ones that are breaking the rules, moving first in exciting new arenas, and creating new ways of doing things. Some of them even stand a decent chance of delivering out-of-sight returns for you over the coming 20 years.

So how can you tell the difference between the companies that will deliver those out-of-sight returns and companies that will sink, well, out of sight? Fool co-founder David Gardner looks for companies that offer "the highest possible returns" -- companies that are top dogs in important and emerging industries, and that have sustainable advantages, strong past price appreciation, good management, and more.

Take video gaming, for example, which, as an industry, has been experiencing explosive growth -- up 19% in 2008 and generating $21 billion. Both Activision Blizzard and Take-Two Interactive have been busy changing the rules of the game -- and setting new standards.

So, what will you regret not buying today?
David and his team have found, among many exciting companies, a specialist in surgical robots, a company that runs China's premier search engine, and one involved in commercial space systems. They each have some key traits in common with the powerful performers in the table above.

If you'd like to see what they're spotting today, I invite you to take advantage of a free 30-day trial of our Motley Fool Rule Breakers service, including full access to all past issues and every previous recommendation, many of which are in cutting-edge fields such as biotech, alternative energy, and nanotechnology. Click here to learn more.

So give it some thought. You might want to park a little money in some rule-breaking companies that could serve you well for a long time.

Already subscribe to Rule Breakers? Log in at the top of this page.

This article was originally published on March 4, 2009. It has been updated.

Longtime Fool contributor Selena Maranjian owns shares of Activision Blizzard, Apple, and Wal-Mart. Take-Two Interactive Software is a Motley Fool Rule Breaker recommendation. Apple and Activision Blizzard are Stock Advisor selections. Intel and Wal-Mart are Inside Value picks. The Motley Fool is Fools writing for Fools.

None

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Walmart Stock Quote
Walmart
WMT
$130.06 (-2.50%) $-3.33
Target Corporation Stock Quote
Target Corporation
TGT
$152.61 (-0.23%) $0.35
Apple Inc. Stock Quote
Apple Inc.
AAPL
$150.43 (-1.51%) $-2.31
Intel Corporation Stock Quote
Intel Corporation
INTC
$27.52 (-1.96%) $0.55
Exxon Mobil Corporation Stock Quote
Exxon Mobil Corporation
XOM
$85.75 (-5.32%) $-4.82
Dell EMC Stock Quote
Dell EMC
EMC
Danaher Corporation Stock Quote
Danaher Corporation
DHR
$265.27 (-0.43%) $-1.16
Expeditors International of Washington, Inc. Stock Quote
Expeditors International of Washington, Inc.
EXPD
$87.66 (-0.60%) $0.53

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
339%
 
S&P 500 Returns
109%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/24/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.