If you invested $ 1,000 in Morgan Stanley a decade ago, here’s how much it would be worth now – July 21, 2021
How a stock’s price changes over time is important to most investors, as price performance can both impact your investment portfolio and help you compare investment results between sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and stocks popular with consumers.
What if you had invested in Morgan Stanley (MRS – Free report) ten years ago? It might not have been easy to hold onto MS all this time, but if it was, how much would your investment be worth today?
In-depth business analysis of Morgan Stanley
With that in mind, let’s take a look at Morgan Stanley’s main business drivers.
Founded in 1935 and incorporated under the laws of the State of Delaware in 1981, Morgan Stanley is the premier financial services holding company headquartered in New York City. With 71,826 employees, the company serves a diverse group of clients and clients, including businesses, governments, financial institutions and individuals, through more than 1,200 offices in 41 countries.
The company’s activities are divided into three segments:
The Institutional Securities (“IS”) segment (54% of net sales in 2020) includes capital raising; financial advisory services which include advice on mergers and acquisitions (M&A), restructurings, real estate and project finance; business loans; sales, trading, financing and market making activities in equities and fixed income securities and related products, including currencies and commodities; benchmarks and risk management analysis; and investment activities.
The Wealth Management (“WM”) segment (39%) provides brokerage and investment advisory services covering various investment alternatives; financial and wealth planning services; annuities and other insurance products; credit and other loan products; cash management services; retirement services; and fiduciary and fiduciary services and engages in the trading of fixed income securities.
The Investment Management (“IM”) segment (7%) provides global asset management products and services in equities, fixed income, alternative investments which include hedge funds and funds of funds, and banking. business, including real estate, private equity and infrastructure, to institutional and individual clients through exclusive and third-party distribution channels. The segment also engages in investment.
In 2019, Morgan Stanley acquired Canadian company Solium Capital Inc. and renamed it Shareworks by Morgan Stanley. In 2020, the company acquired E * Trade Financial. In March 2021, it acquired Eaton Vance.
Building a successful investment portfolio takes a combination of research, patience and a little bit of risk. For Morgan Stanley, if you bought stocks ten years ago, you probably feel very good about your investment today.
According to our calculations, an investment of $ 1,000 made in July 2011 would be worth $ 4,250.46, or a gain of 325.05%, as of July 21, 2021, and this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 226.06% and the price of gold rose 9.40% over the same period.
Looking ahead, analysts expect more potential for MS.
Morgan Stanley stocks have outperformed the industry so far this year. Its profits have exceeded Zacks’ consensus estimate in each of the past four quarters. Its second quarter 2021 results reflect the impacts of a strong advisory business, increased interest income and dismal business performance. The company has made efforts to focus less on revenue streams driven by capital markets, and the acquisitions of Eaton Vance and E * Trade Financial are a step in that direction. The increased focus on business loans will likely continue to support finances. In addition, the company’s strong capital deployments reflect a strong liquidity position. However, the high expenses due to its investments in the franchise are likely to hurt the bottom line. The fall in interest rates and its heavy dependence on income generated by the capital markets make us fearful.
Shares have gained 7.72% in the past four weeks and there have been 6 higher earnings estimate revisions for fiscal 2021 compared to none lower. The consensus estimate has also increased.