As companies grow to become some of the largest on the US stock market, their returns can be impressive. But not long after joining the Top 10 largest by market cap, these stocks, on average, have lagged behind the market.
• The average annualized return for these stocks over the three years prior to joining the Top 10 was more than 25% higher than the market, BUT…
• Three years after joining the Top 10, these stocks were, on average, underperforming the market—a stark turnaround from before. See below:
