It hasn't been all smooth sailing for Ford Motor Company (F) investors over the past decade. The stock price went up even more than the Buick that had the shocks broken. But that doesn't mean investing in the company in 2014 didn't pay off.
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Founded in 1903, the Ford Motor Company was Henry Ford's third attempt at building a successful automobile business. Within five years of his arrival in 1908, the company achieved its first major success with the Model T, which combined efficiency, reliability, and affordability. The car created such demand that Ford opened a new factory in Michigan, revolutionizing the auto industry with the first automobile assembly line. This gave Ford an advantage over its competitors and allowed it to achieve great success.
Like any shrewd investor, Ford invested much of that success into his own company. Soon workers were earning a living wage of $5 an hour, many low-skilled workers were elevated to the middle class, and in the 1920s Ford acquired rival Lincoln Motor Company. By 1930, Ford had cornered the market and two of his three cars on the road were Model Ts.
For the rest of the 20th century, Ford Motor Company continued to expand, opening factories around the world and acquiring other car brands such as Mazda and Land Rover.
Ford Motor Company stock was listed at $64.50 per share on January 18, 1956, and first traded on the New York Stock Exchange in March of the same year. Since then, the stock has split six times, most recently in 1994.
Stock prices rose steadily in the late 1990s, but experienced several years of volatility soon after. And like the broader market, the pandemic hit Ford hard, sending its stock to a 10-year low of less than $4 a share in March 2020. However, the stock price rebounded sharply, peaking at over $18. It will gain market share in 2022.
That being said, if you invested $1,000 on April 15, 2014 and stayed on board until today, your stock would be worth $1,264.73. This results in an annualized return of 2.37% and a total return of 26.47%. For reference, if you had invested the same $1,000 in Nasdaq, your investment would have increased by almost 429% to $5,289.10.
But perhaps it's best to compare Ford's stock to four of its industry rivals. Here's how much his $1,000 investment on April 15, 2014 would be worth in other popular car brands 10 years later.
stock |
Rate of change |
Value as of April 15, 2024 |
Honda Motor Co., Ltd. (HMC) |
41.71% |
$1,417.09 |
General Motors (GM) |
76.14% |
$1,761.43 |
Toyota Motor Corporation (TM) |
173.83% |
$2,738.28 |
Tesla Inc. (TSLA) |
1,159.08% |
$12,590.82 |
GOBankingRates Details
This article originally appeared on GOBankingRates.com: How much is a $1,000 investment in Ford stock from 10 years ago worth today?