If You Invested $1,000 in Costco's IPO, This Is How Much Money You'd Have Now
Costco (NASDAQ: COST) went public on Dec. 5, 1985, at a price of $10 per share ($1.67 adjusted for stock splits), and closed trading on Nov. 3 at a price of $371.96.
That is an impressive gain by any measure. Over the nearly 35-year time frame, Costco stock returned a compound annual growth rate (CAGR) of approximately 16.7%, excluding dividends. Over that same stretch, the S&P 500 generated annual returns of only about 8.3%.
A $1,000 investment in Costco's IPO would be worth almost $223,000 today. Let's see how Costco was able to produce such eye-popping returns.
Source Fool.com
