Investors who stayed engaged with the market throughout 2023 were rewarded with impressive gains from top-performing stocks in the S&P 500. An analysis by Investor’s Business Daily shows that if $10,000 was invested in the top-performing stock each month, it would be worth $440,513 now.
In contrast, investing in the S&P 500 as a whole yielded only a 25% gain for the year, with the index falling 1.2% in December. The chipmaker Broadcom (AVGO) was a standout performer in December, with its shares surging 49%.
The S&P 500 has historically been a mixed bag in January, with an average monthly gain of 1.1%. However, investors may face new uncertainties in 2025, as the big question is whether the index’s weakness in December will bleed into the upcoming year.
By following this strategy of investing in the top-performing stock each month, diligent investors can turn $10,000 into a substantial sum. The analysis shows that if this strategy had been applied to every month from January to December, it would have yielded an impressive 4,305% gain over the past 12 months.
Source: https://www.investors.com/etfs-and-funds/sectors/sp500-12-stocks-turn-10000-to-440513-in-12-months-2014