If You'd Invested $1,000 in Monster Beverage Stock 20 Years Ago, Here's How Much You'd Have Today
Key Points
Monster Beverage has been around under different name since 1935 and has been publicly traded since 1990.
Most of its growth, however, has been driven by the relatively recent introduction of its namesake energy drinks.
While most investors understand how and why the stock’s performed as well as it has, few people would have expected this degree of growth at the beginning of the timeframe in question.
True overnight rags-to-riches stories are relatively rare on Wall Street. They do happen, though. Monster Beverage (NASDAQ: MNST) is one of them.
You may be familiar with the company's namesake energy drink, but that product line is fairly young, only launching in 2002. Before that, it was the perpetually struggling beverage outfit called Hansen Natural, only changing its name to Monster Beverage in 2012 to better align with what ended up becoming its breadwinning profit center.
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And this begs the question: How has the stock performed since the company began firing on all cylinders a few years after Monster-branded energy drinks debuted? Had you invested just $1,000 in this ticker back in mid-September 2006, that position would be worth $38,890 today.
MNST Total Return Price data by YCharts
That's annualized growth of just over 20%, making MNST one of the market's most rewarding stocks during this stretch.
Granted, few (if any) investors would have been in this trade that whole time. It's also an unusually strong performance. It's still a testament to the power of patience when a new product is introduced at the right time and marketed the right way.
Just remain realistic without letting hope cloud your judgment of a company's chances of delivering explosive returns. Most seemingly comparable growth stories don't pan out nearly as well. Think GoPro, or Groupon, or the meal kit company Blue Apron.
Of course, you really only need one truly great pick like Monster Beverage to make a world of difference for your portfolio.
James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Monster Beverage. The Motley Fool has a disclosure policy.