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Here's How Much a $1000 Investment in JPMorgan Chase & Co. Made 10 Years Ago Would Be Worth Today
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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.
Another factor that can influence investors is FOMO, or the fear of missing out, especially 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 worth $4.21 trillion and stockholders’ equity worth $345.8 billion as of Sept. 30, 2024. 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.
Effective the second quarter of 2024, JPMorgan organized its business through the following four reportable segments:
Consumer & Community Banking (CCB) segment (constituting 43.2% of total net revenues in 2023) 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.
Commercial & Investment Bank (CIB) segment (39.6%) offers a wide range of IB, market-making, prime brokerage, and wholesale payments services to a global client base of corporations, investors, financial institutions, government and municipal entities. The segment also offers lending, wholesale payments, and investment banking services to corporations, municipalities, financial institutions and non-profit entities.
Asset & Wealth Management (AWM) segment (12.2%) 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 (5%) consists of Treasury & Chief Investment Office (CIO) and Other Corporate, which includes corporate staff units and centrally managed expenses.
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 JPMorgan Chase & Co. a decade ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in November 2014 would be worth $4,012.44, or a gain of 301.24%, as of November 15, 2024, and this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 191.65% and gold's return of 107.05% over the same time frame.
Going forward, analysts are expecting more upside for JPM.
JPMorgan's shares have outperformed the industry so far this year. Its third-quarter 2024 results reflected solid investment banking (IB) business. Relatively higher rates, strategic buyouts, branch openings and decent loan balance will aid net interest income (NII), though elevated funding costs will weigh on it. Our estimates for NII (managed) and loans imply a CAGR of 1% and 4.8%, respectively, by 2026. A resurgence in deal-making activities and its leading position in the IB business are expected to aid related fee income. Yet, the volatile nature of the capital markets business and high mortgage rates will likely hurt fee income growth. Owing to these challenges, we expect non-interest income (managed) to rise in 2024 but decline next year. Mounting costs will hamper the bottom line. We expect non-interest expenses to rise 5.4% in 2024.
Over the past four weeks, shares have rallied 7.78%, and there have been 4 higher earnings estimate revisions in the past two months for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.
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Here's How Much a $1000 Investment in JPMorgan Chase & Co. Made 10 Years Ago Would Be Worth Today
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.
Another factor that can influence investors is FOMO, or the fear of missing out, especially 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 worth $4.21 trillion and stockholders’ equity worth $345.8 billion as of Sept. 30, 2024. 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.
Effective the second quarter of 2024, JPMorgan organized its business through the following four reportable segments:
Consumer & Community Banking (CCB) segment (constituting 43.2% of total net revenues in 2023) 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.
Commercial & Investment Bank (CIB) segment (39.6%) offers a wide range of IB, market-making, prime brokerage, and wholesale payments services to a global client base of corporations, investors, financial institutions, government and municipal entities. The segment also offers lending, wholesale payments, and investment banking services to corporations, municipalities, financial institutions and non-profit entities.
Asset & Wealth Management (AWM) segment (12.2%) 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 (5%) consists of Treasury & Chief Investment Office (CIO) and Other Corporate, which includes corporate staff units and centrally managed expenses.
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 JPMorgan Chase & Co. a decade ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in November 2014 would be worth $4,012.44, or a gain of 301.24%, as of November 15, 2024, and this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 191.65% and gold's return of 107.05% over the same time frame.
Going forward, analysts are expecting more upside for JPM.
JPMorgan's shares have outperformed the industry so far this year. Its third-quarter 2024 results reflected solid investment banking (IB) business. Relatively higher rates, strategic buyouts, branch openings and decent loan balance will aid net interest income (NII), though elevated funding costs will weigh on it. Our estimates for NII (managed) and loans imply a CAGR of 1% and 4.8%, respectively, by 2026. A resurgence in deal-making activities and its leading position in the IB business are expected to aid related fee income. Yet, the volatile nature of the capital markets business and high mortgage rates will likely hurt fee income growth. Owing to these challenges, we expect non-interest income (managed) to rise in 2024 but decline next year. Mounting costs will hamper the bottom line. We expect non-interest expenses to rise 5.4% in 2024.
Over the past four weeks, shares have rallied 7.78%, and there have been 4 higher earnings estimate revisions in the past two months for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.