The Best Growth Stock No One Is Talking About
What company has turned $250 million into $100 billion in the past 25 years by focusing mostly on online marketplaces? You might be thinking Amazon, but the company I'm actually referring to is IAC/InterActiveGroup (NASDAQ: IAC), the interactive media conglomerate long led by media mogul Barry Diller.
Following its spinoff of Match Group last year, IAC -- along with the 10 enterprises it has spun off over its history -- would be worth about $100 billion, according to a recent shareholder letter from the company. This is up from the $250 million that IAC's predecessor, Silver King, was worth when Diller took it over in 1995. That comes out to a compound annual growth rate of 27%, easily besting the S&P 500 historical average return of 9% and even topping Warren Buffett's Berkshire Hathaway, which has compounded at 20% since 1965.
Today, Match Group is worth $43 billion, while Expedia, which IAC spun off in 2005, is valued at $23 billion. IAC itself has a market cap of $23 billion, and the stock is up nearly 150% since it spun off Match Group last June.
Source Fool.com
