2 FAANG Stocks to Buy in 2024 and 1 to Avoid
The stock market has soared over the last decade. A $10,000 investment made in a market-tracking fund like the Vanguard S&P 500 ETF (NYSEMKT: VOO) at the start of 2014 would be worth $29,673 today after having grown at a compound annual rate of 11.6%, assuming that dividends were reinvested along the way.
But the handful of elite stocks known as the FAANG group has delivered even stronger returns. In the last decade, an equal-weighted and dividend-reinvested portfolio of these five stocks would have grown from $10,000 to $89,051. That's a mind-blowing 24.7% compound annual growth rate. It was a bumpy ride, as the FAANG portfolio outperformed the S&P 500 (SNPINDEX: ^GSPC) tracker in five years and underperformed in the other five, but stellar results of 2015, 2020, and 2023 outweighed the weak 2022 period.
In case you're not familiar with FAANG, I'm talking about these familiar companies:
Source Fool.com
