Learn more about Bespoke’s research and wealth management services.

Today marks the 31st anniversary of Microsoft’s (MSFT) IPO back on 3/13/1986.  You don’t need us to tell you what a great run it has been for MSFT shareholders, but just to remind you, if you invested $10,000 into MSFT at the IPO, that investment would be worth $6,646,604.94 today, and that doesn’t even include dividends!  Not a bad investment even for a 31-year time frame.  What’s even more interesting about MSFT over the last 31 years, though, is how the company has been able to reinvent itself from a PC-centric company to more of a cloud-based company.  It’s hard enough for a small company to reinvent itself, but for a company that was once the largest in the world to lose a lot of its relevance and then shift focus and move back into a leadership role is nearly unheard of.  Apple (AAPL) is a name that quickly comes to mind, but other examples of such a reinvention are few and far between.

The chart below does a good job of showing the rise, fall, and rise again of Microsoft over the last 30 years.  As shown, it’s been anything but a straight line.  As far back as December 1999, the stock was less than $5 from its current level before its share price dropped 75%.  Whereas a $10K investment in MSFT at the IPO is worth $6.7 million today, a $10k investment back in December 1999 would only leave you with $10,900 excluding dividends.

MSFT since IPO

Since the MSFT IPO 31 years ago, no other current member of the S&P 500 has had a better run than Mr. Softee.  The table below lists the fifteen current members of the S&P 500 that were around at the time of the MSFT IPO who have seen their share price increase by more than 10,000%. We also show the two stocks — American International Group (AIG) and Xerox (XRX) — that have actually seen their share price decline during the same time period.  Remember, this is a list of current S&P 500 stocks that were public back in 1987.  Obviously there are a lot of companies that were around in 1986 that have declined, gone out of business, and/or are no longer public.

As far as the two losers cited, if a company has seen its share price decline over a 31-year stretch, there isn’t much you can say.  As far as the winners are concerned, there are a lot of household names.  A name like Amgen (AMGN) has rallied 57,577% since March 1986, while Home Depot (HD) has gained over 40,000%.  Surprisingly, Apple ranks just sixth on the list with a gain of 31,373%.  Finally, while these days it seems like just about every retailer besides Amazon.com (AMZN) has fallen on hard times, there are actually two retailers — Best Buy (BBY) and Ross Stores (ROST) — that made the list. The way things have been going for the sector, though, we wonder if they will be able to hold on to these gains a year from now.

To see Bespoke’s full line of macro and micro research, sign up for one of our premium membership options today!  You won’t be disappointed.
MSFT Table

Print Friendly, PDF & Email