17 Top Stocks of All Time and How You Can Own Them Through Index Fund Investing

Identifying the top 17 stocks of all time and understanding how to use index funds to spread your investments across today’s top stocks.

Imagine a 50,000-times return on investment—sounds unbelievable, right? But that’s exactly what 17 stocks managed to achieve over the past 98 years. Let’s break down the key insights from this remarkable study and what it means for your investment strategy.

Digging into the Data

This research was conducted by Hendrik Bessembinder, a professor at Arizona State University. He analyzed 29,000 U.S. stocks dating back to 1925 and found something astonishing: only 17 of those stocks delivered returns of 50,000 times the initial investment.

Even more surprising? 51% of stocks didn’t make any money at all. That’s right—investing in individual stocks can often feel like flipping a coin. When you’re picking stocks, it’s almost like a coin toss as to whether you’ll end up with a winning or losing investment.

Investing: Stock Picking or Blackjack?

Another way to think about this is to compare stock picking to playing blackjack at a casino. Just like in blackjack, where the house holds a slight edge, investing in individual stocks often places you at a disadvantage. In fact, the odds are eerily similar—when you lose 51.6% of the time in stocks, it mirrors the small edge the casino holds over blackjack players.

The lesson? Be the house, not the gambler.

How to Become the House

Instead of betting on one stock and hoping it hits big, consider a different approach: index fund investing.

Why index funds? They allow you to own a wide range of stocks, including the 49% of companies that have historically delivered positive returns. By investing broadly, you’re giving yourself a better chance of capturing those long-term winners without relying on a coin flip.

The Power of Time in the Market

Let’s talk about those 17 stocks that delivered the massive 50,000-times return. What did they have in common? Surprisingly, many of them weren’t creating explosive returns overnight. In fact, the number one factor driving their success was simple: time in the market.

On average, these stocks had been around for 91 years. Companies like Coca-Cola, Johnson & Johnson, and Boeing aren’t just great because of rapid short-term growth—their secret lies in being around for the long haul and consistently growing over decades.

Consistency Over Flashy Gains

It might surprise you to learn that these 17 stocks didn’t deliver outrageously high annual returns. Their average annual return was around 13.5%, just a bit higher than the 10% you might expect from the broader U.S. stock market over the long term. The real magic happened because investors kept their money invested over decades, allowing compound growth to work its wonders.

What Does This Mean for Your Investments?

Here’s what you can take away from this:

1. Focus on long-term investing: Time in the market beats trying to time the market.
2. Diversify your portfolio: Don’t rely on a single stock to deliver your financial success. Index funds are a great way to gain broad market exposure.
3. Stay consistent: Even modest returns can compound into substantial wealth over time if you remain invested.

Investing doesn’t have to be a gamble. With a thoughtful approach that emphasizes diversification and long-term growth, you can position yourself for financial success.

Links:

• If the Stock Market Crashes While I’m Retired, What do I do?
• 2025 is the Year to Rebalance Your Investments
• Investing in 2025: Simple Strategies with Joseph Hogue of Let’s Talk Money!
• “Which U.S. Stocks Generated the Highest Long-Term Returns?” by Hendrik Bessembinder
• “Do stocks outperform Treasury bills?” Research by Hendrik Bessembinder, Francis J. and Mary B. Labriola, Arizona State University
• “Long-Term Shareholder Returns: Evidence from 64,000 Global Stocks” by Hendrik Bessembinder, Te-Feng Chen, Goeun Choi and K.C. John Wei, Financial Analysts Journal

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