When the S&P 500 is used as a benchmark, the average stock market return is 10% per year. That's a solid rate of return and one that all professional traders would be happy with. Naturally, the average return on stocks will vary from industry to industry. What's more, there will be ups and downs along the way. The point here though is that 10% is a reasonable benchmark and stock returns exceeding that for a long period of time can be considered impressive.
When you scan the financial markets for potential trading opportunities, some stocks stand out more than others. For example, penny stocks have some of the highest historical stock market returns. A company can fall into this category if the stock trades for pennies, as the name suggests, but generally, anything under the $5 can be considered a penny stock.These stocks typically carry more risk because they're either in new companies or niche industries. However, the potential upside of accepting more risk is better returns.
Indeed, as you'll see in the following list, the average stock market returns in companies like Apple can exceed 150,000%. That's significant. Naturally, nothing is guaranteed. No stocks are guaranteed to provide a positive return. However, in return for a certain amount of risk, the following companies provided traders and investors with some of the highest return stocks in history.
*Disclaimer: Past performance is not a reliable indicator of future results
*Disclaimer: Past performance is not a reliable indicator of future results
The importance of research
Your trades might not soar like the companies listed above. However, these success stories show that bull runs can happen when you’re trading on penny stocks. You should always do the necessary research, trade wisely, and avoid moves based on emotion. It's also worth remembering that there will be ups and downs.
Berkshire Hathaway, the conglomerate headed by legendary investor Warren Buffett, has the most expensive stock in the world, with shares trading at over $400,000 each. Berkshire Hathaway's market capitalisation is over $640 billion, making it one of the giant companies in the world.
Yes, you can make money with penny stocks, but you can also make money playing the lottery, though you probably won't. To make money in penny stocks, you have to be able to separate the good companies from the bad, and that means you have to be able to analyze companies.
Warren Buffett is widely considered the greatest investor in the world. Born in 1930 in Omaha, Nebraska, Buffett began investing at a young age and became the chairman and CEO of Berkshire Hathaway, one of the world's largest and most successful investment firms.
Over the past decade, you would have done even better, as the S&P 500 posted an average annual return of a whopping 12.68%. Here's how much your account balance would be now if you were invested over the past 10 years: $1,000 would grow to $3,300. $5,000 would grow to $16,498.
Introduction: My name is Stevie Stamm, I am a colorful, sparkling, splendid, vast, open, hilarious, tender person who loves writing and wants to share my knowledge and understanding with you.
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