You know the “Magnificent Seven” stocks,” right? Even if you do, you might have trouble remembering all seven, just as I often have trouble naming all seven of Snow White’s short companions. So here they are:
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They’re referred to as “magnificent” in large part because of their amazing performance over the past years and decades. Check it out for yourself:
Stock
10-Year Average Annual Return
15-Year Average Annual Return
Apple
25.28%
26.37%
Amazon
28.20%
27.98%
Alphabet
19.85%
13.84%
Meta Platforms
22.04%
N/A
Microsoft
25.62%
20.63%
Nvidia
77.71%
49.82%
Tesla
30.15%
N/A
Data source: Morningstar.com as of Oct. 22, 2024.
See? Amazing. (Remember that the S&P 500 has averaged annual gains of close to 10% over many decades — and it’s hard to beat that.)
Image source: Getty Images.
The numbers above may depress you if you weren’t holding any or many of the stocks over the past years. Don’t despair, though — it’s not too late to become a Magnificent Seven shareholder! Specifically, four of the seven seem attractively or reasonably valued these days.
Will these stocks’ future returns be as robust as their past ones? No one knows, and they may not. But each of them could deliver parabolic returns — with graphs of their performance moving sharply upward — most likely over a short period.
More importantly, even if they fall short of parabolic gains, the stocks below are likely to reward investors quite well over many years — and that’s more important than chasing parabolic gains.
You might be interested in owning shares of Amazon because you’re familiar with its truly massive online marketplace and you’ve been noticing its delivery trucks circling your neighborhood daily. But there’s much more to the company, most notably its Amazon Web Services, the leading cloud computing platform.
Despite its size, Amazon is still growing by double digits while investing in artificial intelligence (AI) and other promising…
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