Stock Market Data! I was thinking to myself a few days ago, what if I bought one share of each of the 100 biggest market caps on the stock market? Would my portfolio be “too diversified”? Would I make a profit?
I decided to complete some research, and the data is worth sharing!
The Study: Say you bought one share of each of these 100 biggest Market Caps offered on July 2, 2019. How much would you have now?
**This data was collected via Robinhood and a stock screener. No dividends were factored in. The calculations run until July 1, 2020. Stocks were personally chosen for research purposes, Berkshire Hathaway A and Alphabet C are not included in this sample. COVID-19 HAS IMPACTED THIS DATA.
Stocks include: AAPL, MSFT, AMZN, GOOGL, FB, BABA, Brk.B, V, JNJ, WMT, MA, JPM, PG, TSM, HNH, HD, INTC, NVDA, VZ, NVS, DIS, T, BAC, TM, ADBE, PYPL, NFLX, EXOM, KO, CSCO, JD, MRK, TSLA, PEP, PFE, CMCSA, CVX, ORCL, SAP, CRM, ABBV, NKE, ABT, ASML, LLY, UN, CHL, AZN, MCD, TMO, ACN, RDS-A, AMGN, COST, TMUS, AVGO, BMY, SNY, DHR, MDT, NEE, BBL, NVO, NTES, TXM, UNP, PM, LIN, WFC, C, BA, TOT, IBM, CHTR, LMT, GSK, PTR, SHOP, HON, LOW, QCOM, RTX, RIO, RY, HSBC, LFC, UPS, PDD, BTI, MMM, SNE, BUD, GILD, SBUX, FIS, BLK, CVS, HDB, AXP, BP.
What would the initial investment cost you?
- It would cost you $15,870.65 to buy one share of each stock above on 07.02.2019
- Amazon would cost the most at $1,934.31 per share.
- China Life Insurance would cost the least at $12.80 per share.
- The average cost per share would be $158.71.
What would be the industry breakdown?
- 13 stocks in drug manufacturing
- 7 stocks in banking.
- 7 stocks in semiconductors.
- 6 stocks in oil and gas.
- 6 stocks in software.
**See excel pictures below for the full breakdown.
How much would you have today?
- You would have $20,153.82.
- A profit of $4,283.17.
- Your investment would have grown 26.99%.
Which stocks performed the best by dollar-value?
- Amazon with a net gain of $944.39
- Tesla with a net gain of $894.16
- Shopify with a net gain of $704.64
- Alphabet (Google) with a net gain of $328.40
- NVIDIA with a net gain of $218.87
Which stocks performed the best by percentage?
- Tesla with a percentage gain of 398.20%
- Pinduoduo with a percentage gain of 319.50%
- Shopify with a percentage gain of 225.88%
- NVIDIA with a percentage gain of 134.91%
- JD.com with a percentage gain of 90.65%
Which stocks performed the worst by dollar-value?
- Boeing with a loss of ($172.92)
- Anheuser-Busch with a loss of ($41.68)
- Berkshire Hathaway (B) with a loss of ($36.55)
- Chevron with a loss of ($35.31)
- Honeywell with a loss of ($32.51)
Which stocks performed the worst by percentage?
- Shell with a percentage loss of 49.67%
- Boeing with a percentage loss of 48.82%
- Wells Fargo with a percentage loss of 46.88%
- Anheuser-Busch with a percentage loss of 45.98%
- HSBC Holdings with a percentage loss of 44.87%
Would your investment be worth it? 100% yes! To say the least, a pretty impressive return during the year of a recession and a global pandemic.
I know a lot of you are saying, “I would’ve bought a bunch of Tesla instead of this”. Even though 60 shares of Tesla would have returned $53,649.60 for the same initial investment, you would have been stretching yourself extremely thin.
For example, if you thought Chevron was going to have a good year and decided to buy 100 shares of it a year ago, you would currently be in a deficit of $3,531.
This extremely diversified and intriguing portfolio would’ve beat out the majority of stock traders who hold all of their capital in 1-2 stocks. Patience and diversity is key towards stable growth!
Would you be willing to take this risk for 2020? Comment your thoughts below!
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***Disclaimer: This is not financial advice. I am not a licensed professional. This research was done for educational and entertainment purposes. Do your own research and address your risk tolerance before pursuing this idea. Thanks all!