Above: Wal-Mart grew profits 40% a year from 1975 to 1984, making it a no-brainer each year. Scroll over the WMT chart above to reveal the stock during the next decade.
The best stocks to own are “no-brainers.” They scream for you to buy them — year after year.
One of the best stocks of recent decades was Wal-Mart (WMT). In 1962 Sam L. Walton and his brother J.L. “Bud” Walton opened the first Wal-Mart store in Rogers, Ark. By 1967 WMT had grown to 24 stores with annual sales of $12.6 million. In 1970 it was a publicly traded company.
WMT grew profits 57% in 1971, 49% in 1972, and 33% in 1973. An accounting change resulted in 1974’s profits going up only slightly. 1975 was clearly the time to buy the stock since profits that year would grow at an astounding 67%. The company, opening in states one by one, had 125 stores in operation and went through its third 2-for-1 stock split. By this point, annual profit growth was averaging more than 40% a year.
To the right is a chart of WMT back-in-the-day (adjusted for stock splits). Obviously a no-brainer — all decade long.
