imagine you found a special coin 7 years ago. this coin was very special because it could be exchanged for something valuable like a toy, a candy or even a small bicycle. at that time, you put that special coin into a piggy bank, and every day after that, you did some chores and collected some pocket money. after a few weeks, your piggy bank was full of coins, and you decided to exchange your special coin for a bicycle.
now, this bicycle is very special too because it's not just a bicycle, it's the fastest bicycle ever. and it's not just fast, it also looks fantastic, like a unicorn made of metal. everyone who saw your bicycle would say: "wow! that's the coolest bicycle ever!"
so, after a few years, you grew up and got a new bicycle, but you still loved your old bicycle so much that you kept it in your shed, under a big blue tarp. and this bicycle was still the coolest thing ever.
and if someone asked you after all these years, "what would you do if you found another special coin?" you'd say, "i'd exchange it for a new bicycle, of course, but I'd still keep my old bicycle, because it's so special, and it's the coolest thing ever!"
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This analysis ignores fundamental aspects of market dynamics and the economics of stock performance. The value of a stock is not determined solely by the number of shares outstanding or the original offering price. It is influenced by many factors including the company's financial performance, market demand, competitive pressures, technological innovations, and macroeconomic trends. An investment's return on investment depends on these factors and the timing of the investment. Therefore, it is not valid to compare the return on a single investment made at a specific time with the returns of a diversified portfolio of investments made over time. The analysis also ignores the impact of stock splits on the apparent performance of an investment. Since the company had multiple splits, the original investment would have been significantly more valuable than indicated in the article. Without this consideration, the analysis distorts the true value created by the investment.
Nvidia's stock has been one of the top-performing stocks over the past year, and it could continue to grow after beating analyst estimates in the second quarter. A $1,000 investment in Nvidia stock at IPO in 1999 would now be worth $4,826,606.93, according to Benzinga. This represents a huge return for Nvidia IPO buyers, with some potentially becoming millionaires over the years. For comparison, the same $1,000 investment in the SPDR S&P 500 ETF Trust (SPY) - which tracks the S&P 500 - would now be worth $7,208.56, indicating that Nvidia has significantly outperformed the broader market over the past 23 years.