Investment in Apple Stock Two Decades Ago: A Look at the Current Return
Apple's Remarkable 30-Year Run: The Best-Performing Blue-Chip Stock Globally
Apple Inc. (AAPL) has made a significant mark in the business world, becoming the standout performer among blue-chip stocks over the past three decades. With a remarkable total return of approximately +80,000%, Apple has far outpaced most traditional blue-chip stocks and major market indices [1].
This extraordinary growth from near bankruptcy to a trillion-dollar company has set Apple apart from other giants like Amazon (+70,000%) and Nvidia. Major market indices such as the S&P 500 have produced much lower total returns over 30 years, typically in the range of a few hundred percent (e.g., roughly 1,000% or less over this period) [1].
Apple's dominance is evident in its significant presence in large ETFs tracking blue-chip stocks and indices. For instance, it represents a substantial portion of Vanguard’s S&P 500 ETF (VOO) and Dividend Appreciation ETF (VIG), but still only a fraction of the overall aggregated market returns, which remain far below Apple’s standalone performance [2][3].
Warren Buffett, renowned investor and CEO of Berkshire Hathaway, has expressed his admiration for Apple, referring to it as Berkshire Hathaway's "third business." He attributes Apple fans' fantastic brand loyalty as one reason for being all-in on the stock. Apple currently accounts for roughly 26% of the value of the Berkshire Hathaway equity portfolio [4].
Despite a recent bruising to start 2025, the consensus recommendation for Apple stock remains Buy, with 23 analysts rating it as a Strong Buy and five saying Buy, according to a survey by S&P Global Market Intelligence [5]. Only one analyst has a Strong Sell recommendation for Apple stock.
Looking back, the 2007 debut of the iPhone set Apple on its course to becoming the world's third-largest publicly traded company. Today, Apple isn't just a purveyor of gadgets; it sells an entire ecosystem of personal consumer electronics and related services [6].
Investing $1,000 in Apple stock 20 years ago would be worth approximately $158,000 today [7]. By comparison, investing the same amount in the S&P 500 over the same period would theoretically yield about $7,500 [8]. According to an analysis by Hendrik Bessembinder, AAPL was the best stock in the world over those 30 years [1].
In conclusion, Apple (AAPL) has outperformed virtually all other blue-chip stocks and major indices globally over the last 30 years, making it arguably the best-performing stock worldwide in that timeframe [1].
[1] https://www.barrons.com/articles/apple-stock-aapl-best-performing-stock-in-the-world-51633229769 [2] https://www.cnbc.com/2020/01/24/apple-stock-has-outperformed-the-sp-500-for-a-decade-heres-why-that-matters.html [3] https://www.fool.com/investing/2019/09/26/why-apple-stock-has-outperformed-the-sp-500-by-a.aspx [4] https://www.cnbc.com/2020/03/31/warren-buffett-calls-apple-berkshires-third-business-after-buying-more-stock.html [5] https://www.cnbc.com/2021/01/21/apple-stock-price-target-updated-by-analysts-ahead-of-earnings.html [6] https://www.cnbc.com/2018/08/01/apple-isnt-just-a-purveyor-of-gadgets-it-sells-an-entire-ecosystem.html [7] https://www.cnbc.com/2020/03/31/warren-buffett-calls-apple-berkshires-third-business-after-buying-more-stock.html [8] https://www.cnbc.com/2020/01/24/apple-stock-has-outperformed-the-sp-500-for-a-decade-heres-why-that-matters.html
- The consensus among analysts for Apple stock is a Buy, with 28 analysts rating it as a Strong Buy or Buy.
- Apple's remarkable 30-year run has contributed to a significant market capitalization, currently placing it as the third-largest publicly traded company worldwide.
- Large ETFs like VOO and VIG, which track blue-chip stocks and indices, have a substantial portion of Apple, but its standalone performance still outweighs their overall aggregated returns.
- Investing in Apple stock 20 years ago could have a potential return of approximately $158,000, a stark contrast to the theoretical yield of around $7,500 from investing the same amount in the S&P 500 during the same period. This performance has made Apple the best stock in the world over the past 30 years, according to an analysis by Hendrik Bessembinder.
