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If You Invested $1000 in JPMorgan Chase & Co. 10 Years Ago, This Is How Much You'd Have Now
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For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also 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 JPMorgan Chase & Co. (JPM - Free Report) ten years ago? It may not have been easy to hold on to JPM for all that time, but if you did, how much would your investment be worth today?
JPMorgan Chase & Co.'s Business In-Depth
With that in mind, let's take a look at JPMorgan Chase & Co.'s main business drivers.
Headquartered in New York, JPMorgan Chase & Co. is one of the biggest global banks with assets valued at $3.68 trillion and stockholders’ equity worth $286.4 billion as of Jun 30, 2021. With operations in more than 60 countries, the company (incorporated under Delaware law in 1968) is one of the largest financial service firms in the world.
JPMorgan organizes its business through following five reportable segments:
Consumer & Community Banking (CCB) segment (constituting 14.7% of total assets in 2020) serves consumers and businesses through personal service at bank branches and through automated teller machine (ATMs), online, mobile and telephone banking. CCB is organized into Consumer & Business Banking, Mortgage Banking, and Card & Auto.
Corporate & Investment Bank (CIB) segment (32.4%) offers a wide range of investment banking (IB), market-making, prime brokerage, and wholesale payments services to a global client base of corporations, investors, financial institutions, government and municipal entities.
Commercial Banking (CB) segment (6.8%) provides lending, wholesale payments, and investment banking services to corporations, municipalities, financial institutions and non-profit entities.
Asset & Wealth Management (AWM) segment (6%) provides services to institutions, retail investors and high-net-worth individuals. It offers global investment management in equities, fixed income, real estate, hedge funds, private equity and liquidity including money market instruments and bank deposits. The segment also offers trust and estate, banking and brokerage services.
Corporate segment (40.1%) consists of Treasury & Chief Investment Office (CIO) and Other Corporate, which includes corporate staff units and centrally managed expenses.
In 2019, JPMorgan acquired InstaMed Holdings Inc.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For JPMorgan Chase & Co. if you bought shares a decade ago, you're likely feeling really good about your investment today.
According to our calculations, a $1000 investment made in October 2011 would be worth $5,468.87, or a 446.89% gain, as of October 6, 2021. Investors should keep in mind that this return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 279.86% and gold's return of 3.22% over the same time frame.
Looking ahead, analysts are expecting more upside for JPM.
JPMorgan's shares have outperformed the industry over the past 12 months. The bank's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters. Opening new branches in 48 states in the United States, strategic buyouts, global expansion and digitization initiatives, and decent mortgage banking business are expected to continue aiding financials. JPMorgan's impressive capital deployments reflect earnings strength and solid balance sheet, and will enhance shareholder value. While robust economic recovery will likely lead to rise in demand for loans, coronavirus-induced economic downturn that hampered business activities continues to hurt loan demand. The Federal Reserve’s accommodative policy and near-zero rates are likely to hurt interest income and margins. Steadily rising expenses also remains a concern.
Shares have gained 5.94% over the past four weeks and there have been 5 higher earnings estimate revisions for fiscal 2021 compared to none lower. The consensus estimate has moved up as well.
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If You Invested $1000 in JPMorgan Chase & Co. 10 Years Ago, This Is How Much You'd Have Now
For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also 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 JPMorgan Chase & Co. (JPM - Free Report) ten years ago? It may not have been easy to hold on to JPM for all that time, but if you did, how much would your investment be worth today?
JPMorgan Chase & Co.'s Business In-Depth
With that in mind, let's take a look at JPMorgan Chase & Co.'s main business drivers.
Headquartered in New York, JPMorgan Chase & Co. is one of the biggest global banks with assets valued at $3.68 trillion and stockholders’ equity worth $286.4 billion as of Jun 30, 2021. With operations in more than 60 countries, the company (incorporated under Delaware law in 1968) is one of the largest financial service firms in the world.
JPMorgan organizes its business through following five reportable segments:
Consumer & Community Banking (CCB) segment (constituting 14.7% of total assets in 2020) serves consumers and businesses through personal service at bank branches and through automated teller machine (ATMs), online, mobile and telephone banking. CCB is organized into Consumer & Business Banking, Mortgage Banking, and Card & Auto.
Corporate & Investment Bank (CIB) segment (32.4%) offers a wide range of investment banking (IB), market-making, prime brokerage, and wholesale payments services to a global client base of corporations, investors, financial institutions, government and municipal entities.
Commercial Banking (CB) segment (6.8%) provides lending, wholesale payments, and investment banking services to corporations, municipalities, financial institutions and non-profit entities.
Asset & Wealth Management (AWM) segment (6%) provides services to institutions, retail investors and high-net-worth individuals. It offers global investment management in equities, fixed income, real estate, hedge funds, private equity and liquidity including money market instruments and bank deposits. The segment also offers trust and estate, banking and brokerage services.
Corporate segment (40.1%) consists of Treasury & Chief Investment Office (CIO) and Other Corporate, which includes corporate staff units and centrally managed expenses.
In 2019, JPMorgan acquired InstaMed Holdings Inc.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For JPMorgan Chase & Co. if you bought shares a decade ago, you're likely feeling really good about your investment today.
According to our calculations, a $1000 investment made in October 2011 would be worth $5,468.87, or a 446.89% gain, as of October 6, 2021. Investors should keep in mind that this return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 279.86% and gold's return of 3.22% over the same time frame.
Looking ahead, analysts are expecting more upside for JPM.
JPMorgan's shares have outperformed the industry over the past 12 months. The bank's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters. Opening new branches in 48 states in the United States, strategic buyouts, global expansion and digitization initiatives, and decent mortgage banking business are expected to continue aiding financials. JPMorgan's impressive capital deployments reflect earnings strength and solid balance sheet, and will enhance shareholder value. While robust economic recovery will likely lead to rise in demand for loans, coronavirus-induced economic downturn that hampered business activities continues to hurt loan demand. The Federal Reserve’s accommodative policy and near-zero rates are likely to hurt interest income and margins. Steadily rising expenses also remains a concern.
Shares have gained 5.94% over the past four weeks and there have been 5 higher earnings estimate revisions for fiscal 2021 compared to none lower. The consensus estimate has moved up as well.