So you have needed to put money into the electrical car (EV) maker Rivian (NASDAQ: RIVN), however you have not gotten round to it. In actual fact, you have needed to put money into it for about three years. If you happen to had invested in Rivian three years in the past, how would you may have finished?
Here is the reply to that query.
The place to speculate $1,000 proper now? Our analyst group simply revealed what they consider are the 10 finest shares to purchase proper now. See the 10 stocks »
Picture supply: Getty Pictures.
Three years in the past, in mid-December 2021, shares of Rivian had been buying and selling for round $115 apiece. For example that you just invested in Rivian then, with $1,000. That might have gotten you near 9 shares. (Do you know that with a lot of good brokerages, you should purchase not solely single shares, however fractions of shares of shares?)
Quick-forward to right now, and the way a lot will your funding have grown? Properly, as of this writing, shares of Rivian have plunged some 87% over the previous three years. That might flip your $1,000 funding into… about $125. Ouch.
What is going on on with Rivian? The maker of electrical pickup vans has faced some challenges. One situation is perhaps that it at present presents solely two fashions, every priced around $100,000. That is steep for most folk. Rivian can also be not but worthwhile, which is not preferrred for traders.
Since a easy funding in a low-fee S&P 500 index fund is finest for a lot of, if not most, individuals, how would you may have finished plunking that $1,000 in the S&P 500 as a substitute of investing in Rivian? Properly, you would be up about 33%, turning your $1,000 into $1,326. That is a mean annual achieve of virtually 10%.
|
Rising at 8% for |
$7,000 invested yearly |
$15,000 invested yearly |
|---|---|---|
|
5 years |
$44,351 |
$95,039 |
|
10 years |
$109,518 |
$234,682 |
|
20 years |
$345,960 |
$741,344 |
|
30 years |
$856,421 |
$1,835,188 |
|
40 years |
$1,958,467 |
$4,196,716 |
Knowledge supply: Calculations by writer.
Clearly, you’ll be able to develop your cash quite powerfully with out speculating on dangerous shares. If you happen to do wish to put money into shares corresponding to Rivian, remember to not put too many eggs in every of these baskets.
Do you have to make investments $1,000 in Rivian Automotive proper now?
Before you purchase inventory in Rivian Automotive, think about this:
The Motley Idiot Inventory Advisor analyst group simply recognized what they consider are the 10 best stocks for traders to purchase now… and Rivian Automotive wasn’t one in every of them. The ten shares that made the minimize might produce monster returns within the coming years.
Take into account when Nvidia made this checklist on April 15, 2005… when you invested $1,000 on the time of our suggestion, you’d have $799,099!*
Inventory Advisor offers traders with an easy-to-follow blueprint for achievement, together with steering on constructing a portfolio, common updates from analysts, and two new inventory picks every month. The Inventory Advisor service has greater than quadrupled the return of S&P 500 since 2002*.
*Inventory Advisor returns as of December 16, 2024
Selena Maranjian has no place in any of the shares talked about. The Motley Idiot has no place in any of the shares talked about. The Motley Idiot has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the writer and don’t essentially replicate these of Nasdaq, Inc.
