If you invested $250 in Capital One stock five years ago, here’s how much you’d have today

On By Vaseline

Capital one financial (NYSE: COF) stocks have proven to be an exceptional investment over the long term. Since 1995, shares have increased in value by more than 3,600%. By comparison, the S&P 500 rose in value by about half that amount over that period.

But what about the past five years? Is Capital One Stock Still Beating the Market?

Have Capital One shares beaten the market over the past five years?

On May 7, 2019, shares of Capital One closed at $91.60 per share. This week the stock price is around $140. Including dividends, the total return over the past five years is approximately 70%. That means a $250 investment would now be worth about $425. The S&P 500, meanwhile, has achieved a total return of 95%, turning a $250 investment into $488.

Why have Capital One shares lagged the market? It was a difficult economic environment for most financial stocks. The Vanguard Financials ETFfor example, has returned only 63% over the past five years. The pandemic, inflation, interest rates and economic uncertainty all played a role.

However, it’s important to note that Capital One stock has underperformed the market over many five-year periods. But beyond the terribly In the long term they have outpaced the market. That’s because many of the stock’s biggest moves have happened in a short period of time. For example, over the past six months, stocks have increased in value by about 35%. If you’re trading in and out of the stock, chances are you’ve missed the biggest upside moves.

There are many stocks like Capital One that lag the market for years and build most of their value in short periods of time. It’s a great reminder that buying and holding high-quality businesses for years, if not decades, is the most reliable way to build wealth.

Should You Invest $1,000 in Capital One Financial Now?

Consider the following before purchasing shares in Capital One Financial:

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Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

If you invested $250 in Capital One stock five years ago, here’s how much you’d have today. originally published by The Motley Fool