Twitter / David Sheppard
A FAANG portfolio consists of stocks from Facebook, Apple, Amazon, Netflix, and Google. These companies have displayed high growth over the last six years. If you had invested $500 in FAANG by May 18, 2018, your portfolio would have grown to $5,059.82. That’s an astronomical return of 911.92%!
Breaking Down Your Hypothetical FAANG Investment
This colossal return is based on a $100 investment in each of the five respective FAANG companies. Assuming that you could purchase fractions of a stock, this would have gotten you 2.61 shares of Facebook, 1.32 of Apple, 0.47 of Amazon, 10.01 of Netflix, and 0.33 shares of Google.
At that time, Netflix was valued at $9.99 per share. By the end of 2012, FAANG jumped 7.51%, thanks mainly to a 32.5% leap in Netflix stock. When the ball dropped into 2013, your $500 would’ve been $537.
FAANG was just getting started.
FAANG’s 2013 Growth
2013 was an even bigger year for FAANG. Netflix once again led the pack, this time with a 297.6% increase over the course of the year. Facebook started off slow, but then exploded by the end of the year to finish with a 105.3% year-over-year increase in price.
When the clock struck 2014, your original $500 investment would’ve magically transformed into a not-so-modest $1147.50. That’s a 113.69% increase from the previous year!
FAANG Solidly Out-Performed the S&P 500 Over the Six-Year Period
2014 wasn’t quite as kind to Amazon, Google, and Netflix. They ended up down 22.18, 4.24, and 7.22 percent respectively from 2013. You still would’ve made a small return of 1.17 percent that year.
As 2015 and 2016 played out, FAANG wrapped up the six-year period with close to a 1,000 percent return. Over that same period, the S&P 500 delivered a very respectable 109.46 percent.
FAANG continues to be a high-growth portfolio. If you have a high-risk tolerance, I’d say jump on board and enjoy the ride.