![]() And this appears to be a truly national phenomenon: I have heard from people who learned the song from sea to shining sea, in California, Connecticut, Hawaii, Illinois, Maryland, Massachusetts, Michigan, New Jersey, New York, Pennsylvania, Massachusetts, and Virginia. The same is true for most other adults I’ve talked to who learned “Fifty Nifty United States” in childhood. Eighteen years later, I can barely remember what happened during the Battle of Lexington and Concord, or which constitutional amendment says what, but I can still sing the name of every state without having to think about it. īecause of the under-performance of most of the nifty fifty list, it is often cited as an example of unrealistic investor expectations for growth stocks.I learned “Fifty Nifty United States” in my fifth-grade music class in Austin, Texas, around 1997. ![]() However, Wal-Mart's initial public offering was in 1970 and only started trading on the NYSE on August 25, 1972, at the end of the bull market. A notable exception was Wal-Mart, the best performing stock on the list, with a 29.65% compounded annualized return over a 29-year period. The long bear market of the 1970s which began with the 1973–74 stock market crash and lasted until 1982 caused valuations of the nifty fifty to fall to low levels along with the rest of the market, with most of these stocks under-performing the broader market averages. Minnesota Mining and Manufacturing (3M).NYSE Nifty Fifty constituents Note: There is no official version of companies composing the list, but the following companies were often included among the Nifty Fifty: Professor Jeremy Siegel analyzed the Nifty Fifty era in his book Stocks for the Long Run, and determined companies that routinely sold for P/E ratios above 50 consistently performed worse than the broader market (as measured by the S&P 500) in the next 25 years, with only a few exceptions. Trading at fifty times earnings or higher was common, far above the long-term market average of about 15 to 20. The most common characteristic by the constituents were solid earnings growth for which these stocks were assigned extraordinary high price–earnings ratios. The stocks were often described as "one-decision", as they were viewed as extremely stable, even over long periods of time. Investor Howard Marks reports that about half of the Nifty Fifty "compiled respectable returns for 25 years, even when measured from their pre-crash highs, suggesting that very high valuations can be fundamentally justified." ![]() Most of the Nifty Fifty have since recovered and are solid performers, although a few are now defunct or otherwise worthless. These fifty stocks are credited by historians with propelling the bull market of the early 1970s, while their subsequent crash and underperformance through the early 1980s are an example of what may occur following a period during which many investors ignore fundamental stock valuation metrics, to instead make decisions on popular sentiment. In the United States, the term Nifty Fifty was an informal designation for a group of roughly fifty large-cap stocks on the New York Stock Exchange in the 1960s and 1970s that were widely regarded as solid buy and hold growth stocks, or " Blue-chip" stocks. For other uses, see Nifty Fifty (disambiguation). ![]() For the Indian stock market index, see NIFTY 50.
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