New
If You'd Invested $1,000 In Rivian Stock 3 Years Ago, Here's How Much You'd Have Today
So you've wanted to invest in the electric vehicle (EV) maker Rivian (NASDAQ: RIVN), but you haven't gotten around to it. In fact, you've wanted to invest in it for about three years. If you had invested in Rivian three years ago, how would you have done?
Here's the answer to that question.
Start Your Mornings Smarter! Wake up with Breakfast news in your inbox every market day. Sign Up For Free »
Image source: Getty Images.
Three years ago, in mid-December 2021, shares of Rivian were trading for around $115 apiece. Let's say that you invested in Rivian then, with $1,000. That would have gotten you close to nine shares. (Did you know that with lots of good brokerages, you can buy not only single shares, but fractions of shares of stocks?)
Fast-forward to today, and how much will your investment have grown? Well, as of this writing, shares of Rivian have plunged some 87% over the past three years. That would turn your $1,000 investment into... about $125. Ouch.
What's going on with Rivian? The maker of electric pickup trucks has faced some challenges. One issue might be that it currently offers only two models, each priced around $100,000. That's steep for most folks. Rivian is also not yet profitable, which isn't ideal for investors.
Since a simple investment in a low-fee S&P 500 index fund is best for many, if not most, people, how would you have done plunking that $1,000 in the S&P 500 instead of investing in Rivian? Well, you'd be up about 33%, turning your $1,000 into $1,326. That's an average annual gain of almost 10%.
|
Growing at 8% for |
$7,000 invested annually |
$15,000 invested annually |
|---|---|---|
|
5 years |
$44,351 |
$95,039 |
|
10 years |
$109,518 |
$234,682 |
|
20 years |
$345,960 |
$741,344 |
|
30 years |
$856,421 |
$1,835,188 |
|
40 years |
$1,958,467 |
$4,196,716 |
Data source: Calculations by author.
Clearly, you can grow your money rather powerfully without speculating on risky stocks. If you do want to invest in stocks such as Rivian, be sure to not put too many eggs in each of those baskets.
Should you invest $1,000 in Rivian Automotive right now?
Before you buy stock in Rivian Automotive, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Rivian Automotive wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $790,028!*
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.
*Stock Advisor returns as of December 16, 2024
Selena Maranjian has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
