Buzz Updates You’ll never guess the best performing title of the past 20 years

Buzz Updates You’ll never guess the best performing title of the past 20 years

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Buzz Update You’ll never guess the best performing title of the past 20 years

If a time machine could take you back to the early 2000s – without the desire to open a crypto wallet – what is the #1 investment you would make?

Maybe Apple Inc. (NASDAQ: AAPL), which has sold 1.3 billion iPhones since 2007 and posted a profit of $19.4 billion last quarter?

Or Tesla Inc. (NASDAQ: TSLA), which went from just 937 car sales in 2009 to over 300,000 last year?

Some income-savvy investors might consider Altria Group Inc. (NYSE: MO). The tobacco giant, formerly Phillip Morris International Inc., has increased its dividends by 631% since 2002. This series of dividend increases is possible when you sell an addictive product to hundreds of millions of people.

But there’s a little-known company that has left those household names in the dust.

The unknown stock that beat all the Wall Street darlings

Monster Beverage Corp. (NASDAQ: MNST) is a company that no one has ever described as changing the world. It’s not about putting an iPhone in the hand of one in three humans or solving climate change.

Yet this energy drink company has returned 87,560% from 2000 to 2020, enough to turn every dollar invested into $876.

Why has Monster Beverage been able to dramatically outperform these world-changing companies?

Part of the reason is its size – Monster Beverage had $92 million in revenue in 2002 while Apple brought in $5.7 billion. A small company can grow its revenue – and ultimately its profits and stock price – much faster than a company that is already a giant.

But there’s a bigger factor at play. Apple spent $446 million on research and development in 2002 to stay ahead of competitors and maintain existing operations. By 2022, its annual operating costs had reached $274 billion.

To keep the lights on, Apple had to spend $274 billion or the company could no longer manufacture and sell products. In contrast, Monster Beverage only spent $4.6 billion on operating costs in 2022.

It turns out that an energy drink company is a lot less capital intensive than a tech company – and that difference, compounded over the years, means Monster Beverage had hundreds of billions more dollars to invest in growth. of his business by expanding his operations. and claim a larger market share.

A similar dynamic benefited Coca-Cola Co. (NYSE: KO). If you’ve ever wondered why the ticker symbol is KO rather than CO or CC, it’s because Wall Street has chosen an acronym for “knock out.” The feeling was that investing in Coca-Cola was a slam dunk because the priceless brand attracted the loyalty of hundreds of millions of people around the world. How could investors be wrong?

Sure enough, $100 invested in Coca-Cola at the time of its IPO in 1919 would have turned into $1.25 million a century later. Many factors drive this performance, but it’s no coincidence that Coca-Cola only had to pay $24 billion in operating costs in 2020, less than 10% of what ‘Apple paid.

Benzinga has a lot to say about the battles between tech giants to capture hundreds of billions of dollars in market share from game-changing trends like blockchain technology, 5G and clean energy. But like stocks like Monster Beverage showslow and steady can sometimes win the race.

Benzinga follows a company with striking parallels to Monster Beverage. It also has a product designed to improve energy levels and performance. It’s already profitable, but with just $17 million in sales since 2012, it’s even smaller than Monster Beverage was at the turn of the century.

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© 2022 Benzinga does not provide investment advice. All rights reserved.

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