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Company created by two South Africans tops S&P 500 30-year performance

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A company started by two WITS graduates outperformed Amazon, Apple, and Nvidia to top the S&P 500 index’s 30-year performance list.

Monster Beverage Corporation outperformed Amazon, Apple, and Nvidia to top the list of the best-performing stocks in the S&P 500 over the last 30 years.

Monster achieved a 30-year total return of 213,088% at an annualised rate of 32%. $10,000 invested in the company in 1992 will now be worth $21 million.

It outperformed exceptional tech companies like Amazon with a 30-year performance of 168,927%, Apple with 46,544%, and Nvidia with 41,421%.

Monster Beverage Corporation was created by two South Africans – Rodney Sacks and Hilton Schlosberg – who both attended the University of the Witwatersrand (Wits).

They emigrated to the United States at different times but joined forces in 1990 to acquire Hansen Natural Corporation for $1.71 million.

After the acquisition, Sacks has been chairman and CEO of Hansen Natural Corporation, while Schlosberg served as president and COO.

Their big break came in 2002 when they launched Monster Energy. Within ten years, they increased revenue to $2 billion.

So successful was Monster Energy that the Hansen Natural Corporation changed its name to Monster Beverage Corporation in 2012.

Today, the company has numerous top brands, including Monster Energy, Burn, NOS, Full Throttle, Relentless, Mother, Reign, and Predator.

In February 2022, it added several craft beers and hard seltzers to its product portfolio by acquiring CANarchy Craft Brewery Collective.

What makes Monster Beverage Corporation stand out, apart from its energy drinks, is its stellar financial performance.

Monster drinks are sold in 141 countries, and the company has a significant share of the $53 billion global energy drink market.

An analysis by Charlie Bilello, CEO of Compound Capital Advisors, showed that Monster Beverage Corporation was the best-performing company in the S&P 500 Index over the last 30 years.

The company’s growth is not slowing down. It achieved record second-quarter net sales of $1.66 billion in the 2022 second quarter, 13.2% higher than in the 2021 comparable period.

Schlosberg, now vice chairman and co-CEO, said they were pleased to report continued strong revenue growth, driven by consumer demand.

Sacks, chairman and co-CEO, added that Monster Beverage Corporation is well positioned to capitalise on growth in the global energy drink category with its Monster Energy family of brands.

The chart below shows the Monster Beverage Corporation’s share price over the last 30 years.

Top-performing stocks in the S&P 500 Index over 30 years

The table below shows the top-performing stocks in the S&P 500 Index over the last 30 years, with Monster Beverage Corporation leading the pack.

Top performing stocks in the S&P 500 over 30 years
Company 30-year total return Annualised return
Monster Beverage Corp 213,088% 32.8%
Amazon 168,927% 34.1%
Pool Corp 49,989% 26.0%
Apple 46,544% 22.7%
Nvidia 41,421% 29.1%
Amphenol Corp 41,174% 22.2%
Qualcomm 41,112% 22.2%
NVR 40,790% 22.2%
Altria Group 37,458% 21.8%
Resmed 34,147% 23.9%

 

 

 

Source: Dailyinvestor.com

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