For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.

FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.

What if you'd invested in Interactive Brokers Group, Inc. (IBKR Quick QuoteIBKR - Free Report) ten years ago? It may not have been easy to hold on to IBKR for all that time, but if you did, how much would your investment be worth today?

Interactive Brokers Group, Inc.'s Business In-Depth

With that in mind, let's take a look at Interactive Brokers Group, Inc.'s main business drivers.

Incorporated in 1977 and headquartered in Greenwich, CT, Interactive Brokers Group Inc. operates as an automated global electronic market maker and broker. The company specializes in routing orders, besides executing and processing trades in securities, futures, foreign exchange instruments, bonds and mutual funds on more than 135 electronic exchanges and market centers worldwide.

Since 2017, the company has been working continuously to wind down its Market Making segment and focus more on the Electronic Brokerage segment. In April 2020, Interactive Brokers announced that its market making activities were almost insignificant and hence has decided not to report its operations through two separate segments.

Prior to its IPO in May 2017, Interactive Brokers conducted business through a limited liability company (LLC) structure. In connection with the IPO, the company purchased 10.0% of the membership interest in IBG LLC. As of Dec 31, 2020, Interactive Brokers’ primary assets were its ownership of 21.8% of the membership interests in IBG LLC. The remaining 78.2% of the membership interests were held by IBG Holdings LLC.

As of Dec 31, 2020, Interactive Brokers had $95.7 billion in total assets, $48.0 billion in cash and cash equivalents (including segregated cash and securities), and $2 billion in stockholders’ equity.

Bottom Line

Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Interactive Brokers Group, Inc. a decade ago, you're probably feeling pretty good about your investment today.

A $1000 investment made in March 2011 would be worth $4,931.10, or a gain of 393.11%, as of March 23, 2021, according to our calculations. This return excludes dividends but includes price appreciation.

The S&P 500 rose 204.58% and the price of gold increased 16.15% over the same time frame in comparison.

Looking ahead, analysts are expecting more upside for IBKR.

Shares of Interactive Brokers have underperformed the industry over the past year. Its earnings have outpaced the Zacks Consensus Estimate in three of the trailing four quarters. Its fourth-quarter 2020 results were aided by higher revenues. The company's efforts to develop proprietary software (including IBKR Lite) and an increase in emerging market customers are expected to continue to aid financials. The deal to buy the retail unit of Folio Investments will strengthen its position in the online brokerage space. Its efficient capital deployments indicate a strong liquidity position. While elevated costs (owing to technology upgrades and investments in franchise) and the near-zero interest rate environment remain major woes; its low level of compensation expense relative to net revenues, owing to its technological excellence, is encouraging.

Shares have gained 6.11% over the past four weeks and there have been 1 higher earnings estimate revisions for fiscal 2021 compared to none lower. The consensus estimate has moved up as well.