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Here's How Much a $1000 Investment in LPL Financial Holdings Inc. Made 10 Years Ago Would Be Worth Today

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How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.

The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.

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

LPL Financial Holdings Inc.'s Business In-Depth

With that in mind, let's take a look at LPL Financial Holdings Inc.'s main business drivers.

LPL Financial Holdings Inc. is based in Boston, MA. It is a clearing broker-dealer and an investment advisory firm that acts as an agent for its advisors, on behalf of their clients, by providing access to a broad array of financial products and services.

LPL Financial conducts business through its subsidiaries. Some of the important ones are:

LPL Financial LLC is broker-dealer and an investment adviser, which clears and settles customer transactions.

Private Trust Company, N.A. offers trust administration, investment management oversight and Individual Retirement Account (IRA) custodial services.

LPL Employee Services, LLC is a holding company for Allen & Company of Florida, LLC, a registered investment adviser (RIA).

Fortigent Holdings Company provides solutions and consulting services to RIAs, banks and trust companies serving high-net-worth clients.

LPL Insurance Associates, Inc., operates as a brokerage general agency that offers life and disability insurance sales and services.

AW Subsidiary, Inc. is a holding company for AdvisoryWorld and Blaze Portfolio Systems LLC. AdvisoryWorld provides technology products, including proposal generation, investment analytics and portfolio modeling. Blaze offers an advisor-facing trading and portfolio rebalancing platform

LPL Financial has been expanding through acquisitions. In 2011, the company acquired Concord Capital Partners, Inc. and certain assets of National Retirement Partners. In 2012, it purchased Fortigent. In 2017, the company acquired certain assets and rights of National Planning Holdings, Inc.

In 2018, LPL Financial acquired all of the outstanding shares of AdvisoryWorld. In 2019, it acquired Allen & Company of Florida. In 2020, it acquired the assets of E.K. Riley Investments, Lucia Securities and Blaze Portfolio. In 2021, the company acquired Waddell & Reed's wealth management business.

As of Sep 30, 2022, LPL Financial had total advisory assets of $542.6 billion and brokerage assets of $495.8 billion. As of the same date, it had cash and cash equivalents of $1.22 billion, total assets of $9.70 billion, and shareholders’ equity of $2 billion.

Bottom Line

Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For LPL Financial Holdings Inc. if you bought shares a decade ago, you're likely feeling really good about your investment today.

A $1000 investment made in November 2012 would be worth $8,869.82, or a 786.98% gain, as of November 3, 2022, according to our calculations. Investors should note that this return excludes dividends but includes price increases.

The S&P 500 rose 165.85% and the price of gold increased -8.24% over the same time frame in comparison.

Analysts are anticipating more upside for LPLA.

Shares of LPL Financial have outperformed the industry over the past year. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters. The company’s third-quarter 2022 results were aided by growth in revenues. Strategic acquisitions, including the buyout of Waddell & Reed's wealth management business, will likely keep supporting the company's financials. Solid advisor productivity and recruiting efforts are expected to keep aiding advisory revenues. However, elevated costs mainly due to higher compensation and benefits expenses, uncertainty regarding the performance of the capital markets and the presence of substantial amounts of goodwill on the company’s balance sheet are major concerns. Yet, LPL Financial's efficient capital deployment activities reflect a solid balance sheet position.

Over the past four weeks, shares have rallied 7.26%, and there have been 4 higher earnings estimate revisions in the past two months for fiscal 2022 compared to none lower. The consensus estimate has moved up as well.

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