Here's How Much a $1000 Investment in Microsoft Made 10 Years Ago Would Be Worth Today
How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
One stock that has performed exceptionally well over the past decade is Microsoft (NASDAQ: MSFT). The tech giant has seen its stock price soar, making investors who bought in 10 years ago very happy.
Let's take a look at how much a $1000 investment in Microsoft made 10 years ago would be worth today.
Microsoft's Stock Performance Over the Past Decade
In order to determine the value of a $1000 investment in Microsoft made 10 years ago, we need to analyze the stock's performance over the past decade.
Between 2010 and 2020, Microsoft's stock price experienced significant growth. In 2010, the stock was trading at around $25 per share. By the end of 2020, the stock had reached a price of approximately $220 per share.
This means that over the past 10 years, Microsoft's stock price has increased by a staggering 780%. Such impressive growth can be attributed to the company's focus on innovation and its dominance in various tech sectors, including cloud computing and productivity software.
The Calculation
Now that we know the percentage increase in Microsoft's stock price over the past decade, we can calculate the value of a $1000 investment made 10 years ago.
Starting with a $1000 investment, we can multiply it by the 780% increase in stock price to determine the final value.
$1000 * 780% = $7800
Therefore, a $1000 investment in Microsoft made 10 years ago would be worth approximately $7800 today.
Conclusion
Investing in Microsoft 10 years ago would have been a very wise decision. The company's stock has seen exponential growth, resulting in significant returns for investors.
However, it's important to note that past performance is not indicative of future results. Investing in stocks always carries a level of risk, and it's essential to conduct thorough research and consider your own investment goals before making any decisions.
Overall, Microsoft's stock performance over the past decade showcases the potential for substantial returns when investing in well-established tech companies.
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