A long-term view of Equity Investments
- Giles

- Jul 7, 2022
- 2 min read
Especially, right now, it is tempting to try and take a shorter-term view of the prices of the top 10 stocks by market cap and end-up with a pessimistic view of stock investing. However, if we take the long-term view of the past performance of these stocks, they are still out-performing by quite a bit. See the chart below:

Taking a look at the chart above, we can see that the top 10 stocks based on market capitalization are all up by a large percentage since 2 years ago with the exception of Amazon and Facebook. Then taking an even longer view of these stocks, we can see that Apple (AAPL), GOOG (GOOG & GOOGL), Tesla (TSLA) are up by more than 100% from 3 years ago, while Microsoft (MSFT), Berkshire Hathaway CI B (BRK.B), United Healthcare Inc (UNH), and Johnson & Johnson (JNJ) are up by a healthy percentage from 3 years ago. We can also see that Amazon (AMZN) is up ~13% from 3 years ago. The only real laggard among these 10 stocks is Meta Platforms Inc (META), whose stock price has fallen by quite a large percentage due to a number of different factors.
So taking the long-term view of the top 9 stocks above, we can see that the stock prices are still up significantly over a 3 year timespan, and it confirms that the stock market, in general, goes up in the long-run. So if you are wondering if it is a good time to invest in the stock market, I encourage you take a longer-view of the market as well as a longer view in your stock investment strategy when evaluating whether to invest in a particular stock.



Comments