These 2 Stocks Could Triple Your Money Over the Next Decade
Finding stocks that can triple your investment in just a decade may sound unlikely, but you don't have to beat the market by a mile to make it happen.
Indeed, all it takes is a compound average growth rate (CAGR) of at least 11.6%. That just happens to be the exact return of the S&P 500 index over the last 10 years. By reinvesting dividends in more stock along the way, you would have earned a 265% return over the same period. That's a CAGR of 13.8%. A couple of percentage points can make a big difference in the long run.
However, you can't count on an index fund tracking the S&P 500 to deliver annualized returns of 11.6% forever. If you stretch the timeline back for 20 years, for example, the S&P 500 has only produced a CAGR of 8.8% if one includes dividend-reinvestment, and an even lower 6.7% from share price growth alone. (The financial crisis of 2008 and 2009 took a big bite out of the stock market.)
Source Fool.com
