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If You Invested $1000 in The Charles Schwab Corporation 10 Years Ago, This Is How Much You'd Have Now
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How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and 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 The Charles Schwab Corporation (SCHW - Free Report) ten years ago? It may not have been easy to hold on to SCHW for all that time, but if you did, how much would your investment be worth today?
The Charles Schwab Corporation's Business In-Depth
With that in mind, let's take a look at The Charles Schwab Corporation's main business drivers.
Headquartered in San Francisco, CA, The Charles Schwab Corporation is a savings and loan holding company, providing wealth management, securities brokerage, banking, asset management, custody and financial advisory services.
The company's main subsidiaries include Charles Schwab & Co. (securities broker-dealer), Charles Schwab Investment Management (an investment advisor for Schwab's proprietary mutual funds and Schwab’s exchange-traded funds) and Charles Schwab Bank (a federal savings bank).
Schwab provides financial services to individuals and institutions through two reportable segments – Investor Services and Advisor Services.
The Investor Services segment (constituting 71.8% of net revenues in 2020) includes Schwab’s retail brokerage and banking operations as well as retirement plan and corporate brokerage services. Through this segment, the company offers research, analytic tools, online portfolio planning tools, performance reports, market analysis and educational material to its clients.
The Advisor Services segment (28.2%) offers custodial, trading and support services to independent investment advisors. It also provides retirement business services to independent retirement plan advisors and record-keepers.
In May 2020, Schwab acquired certain of assets of USAA’s Investment Management Company, including brokerage and managed portfolio accounts. In June, it acquired Motif’s technology and intellectual property assets, while in July it acquired Naples, FL-based Wasmer, Schroeder & Company. In October, the company completed the buyout of TD Ameritrade, leading to the formation of a behemoth in the brokerage industry.
As of Dec 31, 2020, the company had 29.6 million active brokerage accounts, 1.5 million banking accounts and 2.1 million corporate retirement plan participants.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in The Charles Schwab Corporation ten years ago, you're likely feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in March 2011 would be worth $3,815.27, or a 281.53% gain, as of March 17, 2021. Investors should keep in mind that this return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 215.28% and the price of gold went up 18.53% over the same time frame.
Looking ahead, analysts are expecting more upside for SCHW.
Schwab’s shares have outperformed the industry over the past six months. The company has a decent earnings surprise history. Its earnings have surpassed the Zacks Consensus Estimate in two of the trailing four quarters. Opportunistic acquisitions over the past year have strengthened Schwab’s position as a leading brokerage player, and will be accretive to earnings in the upcoming quarters. Offering commission-free trading has been leading to higher client assets and rise in brokerage accounts, which in turn is improving the company's market share. Its efficient capital deployment activities reflect a solid balance sheet position. However, continued near-zero interest rates and no chance of any increase in the same in the near term remains a major concern. Also, persistently increasing costs will hurt profitability to some extent.
Over the past four weeks, shares have rallied 14.01%, and there have been 6 higher earnings estimate revisions in the past two months for fiscal 2021 compared to none lower. The consensus estimate has moved up as well.
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If You Invested $1000 in The Charles Schwab Corporation 10 Years Ago, This Is How Much You'd Have Now
How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and 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 The Charles Schwab Corporation (SCHW - Free Report) ten years ago? It may not have been easy to hold on to SCHW for all that time, but if you did, how much would your investment be worth today?
The Charles Schwab Corporation's Business In-Depth
With that in mind, let's take a look at The Charles Schwab Corporation's main business drivers.
Headquartered in San Francisco, CA, The Charles Schwab Corporation is a savings and loan holding company, providing wealth management, securities brokerage, banking, asset management, custody and financial advisory services.
The company's main subsidiaries include Charles Schwab & Co. (securities broker-dealer), Charles Schwab Investment Management (an investment advisor for Schwab's proprietary mutual funds and Schwab’s exchange-traded funds) and Charles Schwab Bank (a federal savings bank).
Schwab provides financial services to individuals and institutions through two reportable segments – Investor Services and Advisor Services.
The Investor Services segment (constituting 71.8% of net revenues in 2020) includes Schwab’s retail brokerage and banking operations as well as retirement plan and corporate brokerage services. Through this segment, the company offers research, analytic tools, online portfolio planning tools, performance reports, market analysis and educational material to its clients.
The Advisor Services segment (28.2%) offers custodial, trading and support services to independent investment advisors. It also provides retirement business services to independent retirement plan advisors and record-keepers.
In May 2020, Schwab acquired certain of assets of USAA’s Investment Management Company, including brokerage and managed portfolio accounts. In June, it acquired Motif’s technology and intellectual property assets, while in July it acquired Naples, FL-based Wasmer, Schroeder & Company. In October, the company completed the buyout of TD Ameritrade, leading to the formation of a behemoth in the brokerage industry.
As of Dec 31, 2020, the company had 29.6 million active brokerage accounts, 1.5 million banking accounts and 2.1 million corporate retirement plan participants.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in The Charles Schwab Corporation ten years ago, you're likely feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in March 2011 would be worth $3,815.27, or a 281.53% gain, as of March 17, 2021. Investors should keep in mind that this return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 215.28% and the price of gold went up 18.53% over the same time frame.
Looking ahead, analysts are expecting more upside for SCHW.
Schwab’s shares have outperformed the industry over the past six months. The company has a decent earnings surprise history. Its earnings have surpassed the Zacks Consensus Estimate in two of the trailing four quarters. Opportunistic acquisitions over the past year have strengthened Schwab’s position as a leading brokerage player, and will be accretive to earnings in the upcoming quarters. Offering commission-free trading has been leading to higher client assets and rise in brokerage accounts, which in turn is improving the company's market share. Its efficient capital deployment activities reflect a solid balance sheet position. However, continued near-zero interest rates and no chance of any increase in the same in the near term remains a major concern. Also, persistently increasing costs will hurt profitability to some extent.
Over the past four weeks, shares have rallied 14.01%, and there have been 6 higher earnings estimate revisions in the past two months for fiscal 2021 compared to none lower. The consensus estimate has moved up as well.