The "Magnificent Seven" stocks are some of the best and brightest growth investments you could have owned over the past year. These companies have been synonymous with growth in recent years:
- Alphabet (GOOG 0.78%) (GOOGL 0.77%)
- Amazon (AMZN -0.83%)
- Apple (AAPL 1.02%)
- Meta Platforms (META -1.22%)
- Microsoft (MSFT -0.71%)
- Nvidia (NVDA -5.55%)
- Tesla (TSLA -1.85%)
How would you have fared if you invested $1,000 into each of these seven stocks ($7,000 total) seven years ago? How would that investment look in comparison to putting $7,000 in the S&P 500 over the same timeframe?
How these stocks have performed over the past seven years
A lot has changed since 2017. While these big-name stocks were already popular seven years ago, they've all generated monstrous growth during that time and become even more prominent stocks today.
One of the biggest winners has no doubt been electric vehicle maker Tesla, which transformed from an unprofitable business into a consistently profitable one. While investors today worry about whether its margins are strong enough (it recently started offering discounts on some of its vehicles), Tesla is still in a much better place than where the company was in 2017, when it reported a net loss of $2.2 billion.
Nvidia may be a more promising growth stock these days, due to the role its chips play in helping companies develop various artificial intelligence (AI) advancements and efficiencies. However, all of these companies have generated strong growth since 2017, and these trends could continue for years to come, given their strong industry positions and overall market dominance.
AAPL Revenue (TTM) data by YCharts.
How would your Magnificent Seven returns look?
The chart below illustrates how your returns would look for each of these stocks (using class C shares for Alphabet) if you invested $1,000 into each on Feb. 1, 2017, at the market close and held on until market close on Feb. 1, 2024:
| Stock | Feb. 1, 2017 Price | Feb. 1, 2024 Price | Return | 7-Year Return on $1,000 Investment |
|---|
| Apple | $32.19 | $186.86 | 480.5% | $5,804 |
| Amazon | $41.62 | $159.28 | 282.7% | $3,827 |
| Alphabet | $39.68 | $142.71 | 258.8% | $3,587 |
| Meta Platforms | $133.23 | $394.78 | 196.3% | $2,963 |
| Microsoft | $63.58 | $403.78 | 535.1% | $6,351 |
| Nvidia | $28.49 | $630.27 | 2,112% | $22,123 |
| Tesla | $16.62 | $188.86 | 1,036% | $11,363 |
Data source: Yahoo Finance. Calculations by the author. Notes: Prices are adjusted for stock splits. Prices are the closing price for that day. Alphabet data is for its Class C stock. Seven-year return is for the stock only and is not the total return that includes dividends.
The total value of those investments as of Feb. 1 would be approximately $56,019. From an original $7,000 investment spread across all seven stocks, you'd have generated a return of 700%. If you had instead invested $7,000 into the S&P 500, the value of your investment today would be roughly $15,070. While you would have more than doubled your money, the returns wouldn't be nearly as impressive.
Are these stocks still good buys today?
Investing in the top growth stocks in the world is generally not a bad idea. These businesses are all leading companies and buying stakes in all seven can mitigate your overall risk, while also putting you in an excellent position to generate strong returns. While you could make better returns from smaller stocks and less-proven investments, you'd also likely take on more risk in the process.
If you're willing to buy and hold any or all of these stocks, odds are you can still generate a good return in the long run: All these companies continue to pursue growth opportunities and can get a whole lot bigger in the future.
What you can take away from these results is that even though a business may be well-known or already large and established, it may still not be too late to invest in it. Back in 2017, these stocks were all popular ones to own. And though they may not have been known as the Magnificent Seven back then, they were among the top growth stocks in the world, and investing in them has paid off significantly for shareholders.
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors.
David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
FAQs
From an original $7,000 investment spread across all seven stocks, you'd have generated a return of 700%. If you had instead invested $7,000 into the S&P 500, the value of your investment today would be roughly $15,070. While you would have more than doubled your money, the returns wouldn't be nearly as impressive.
What is the magnificent seven Motley Fool? ›
The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla.
What investments double every 7 years? ›
How the Rule of 72 Works. For example, the Rule of 72 states that $1 invested at an annual fixed interest rate of 10% would take 7.2 years ((72 ÷ 10) = 7.2) to grow to $2. In reality, a 10% investment will take 7.3 years to double (1.107.3 = 2). The Rule of 72 is reasonably accurate for low rates of return.
How do I double money in 5 years? ›
Five years is too short a period to expect a doubling of your investment. To achieve this target, you would need to earn a yearly return of 15 per cent, which seems highly ambitious, even for an all-equity portfolio.
What is the rule of 7 in investing? ›
1 At 10%, you could double your initial investment every seven years (72 divided by 10). In a less-risky investment such as bonds, which have averaged a return of about 5% to 6% over the same period, you could expect to double your money in about 12 years (72 divided by 6).
What are the magnificent 7 stocks for 2024? ›
Dubbed the Magnificent Seven stocks, Apple, Microsoft, Google parent Alphabet, Amazon, Nvidia, Meta Platforms and Tesla lived up to their name in 2023 with big gains. But the start of the third quarter of 2024 showed a big divergence of returns.
What is The Magnificent Seven in finance? ›
The Magnificent Seven is, of course, a reference to the 1960s American Western film. But instead of seven cowboys, you've got Microsoft, Apple, Tesla, “Amazon, Meta, Alphabet, as well as Nvidia,” said James Angel, a finance professor at Georgetown.
Do 401k double every 7 years? ›
One of those tools is known as the Rule 72. For example, let's say you have saved $50,000 and your 401(k) holdings historically has a rate of return of 8%. 72 divided by 8 equals 9 years until your investment is estimated to double to $100,000.
What is the rule of 42? ›
One of the key rules within my unique Income Method is the Rule of 42 - holding at least 42 income-generating investments that enable you to have reduced risk from any individual holding.
How many years does it take to double your money at 7% interest? ›
What Is the Rule of 72?
| Annual Rate of Return | Years to Double |
|---|
| 7% | 10.3 |
| 8% | 9 |
| 9% | 8 |
| 10% | 7.2 |
6 more rowsFinal answer:
It will take approximately 15.27 years to increase the $2,200 investment to $10,000 at an annual interest rate of 6.5%.
How can I double $5000 quickly? ›
To turn $5,000 into more money, explore various investment avenues like the stock market, real estate or a high-yield savings account for lower-risk growth. Investing in a small business or startup could also provide significant returns if the business is successful.
How long will it take for an investment of $1000 to double? ›
Expert-Verified Answer
Under continuous compounding at an annual interest rate of 6.5%, it will take approximately 10.67 years for an initial investment of $1000 to double in value.
What will $5000 be worth in 20 years? ›
The table below shows the present value (PV) of $5,000 in 20 years for interest rates from 2% to 30%. As you will see, the future value of $5,000 over 20 years can range from $7,429.74 to $950,248.19.
How to double your money in 7 years? ›
Invest in an S&P 500 index fund
The S&P 500 also has an attractive long-term return, averaging about 10 percent annually over long periods. That means that, on average, you'll be able to double your money in just over seven years.
What is the Buffett rule of investing? ›
“The first rule of investment is don't lose. The second rule of investment is don't forget the first rule.” Buffett famously said the above in a television interview.
What's the story behind The Magnificent Seven? ›
Plot. A gang of bandits led by Calvera periodically raids a poor Mexican village for food and supplies. After the latest raid, during which Calvera kills a villager, the village leaders decide to fight back. They send three villagers carrying their few objects of value to try and barter for weapons.
What percentage of the S&P 500 is magnificent 7 stocks? ›
Add up those components and these seven stocks deliver 29 percent of the S&P 500's performance. Meanwhile, the S&P 500's other 490-some stocks deliver the remaining 71 percent. As great as this weighting is, it's even more lopsided in the Nasdaq 100: Apple – 8.09 percent.
What are the Faang stocks? ›
What are FAANG Stocks? FAANG stocks are the publicly traded stocks of U.S. technology giants Facebook, Amazon, Apple, Netflix, and Google. They are among the best-performing technology and most well-known companies in the world.
What did Kurosawa think of The Magnificent Seven? ›
Kurosawa was partial to European films
Perhaps Kurosawa felt that his film was too closely tied to feudal Japan to be considered adaptable. The director admitted: "The American copy is a disappointment, although entertaining. It is not a version of 'Seven Samurai.
