The Growth of a $1000 Investment in Extra Space Storage

The Worth of an Investment Over Time
Investing can yield impressive returns, especially when compounded over several years. Consider the example of Extra Space Storage, a company that has shown remarkable growth over the past decade and a half.
Performance of Extra Space Storage
Extra Space Storage (NYSE: EXR) has been a strong performer in the market, surpassing the general market returns by a notable 3.06% annually over 15 years. The company managed to produce an average annual return of 15.44%, which is compelling for any investor looking to grow their wealth.
Investment Returns
For instance, if an investor had chosen to invest $1000 in EXR stock fifteen years ago, that investment would have ballooned to approximately $8,869.80 today based on the current trading price of $147.15 per share. This illustrates the substantial benefit of long-term investing in quality stocks.
Understanding Compounded Growth
The crucial lesson from this scenario is the significant impact of compounded returns. Compounding interest works efficiently over time, leading to exponential growth of an initial investment. The longer an investment is held, the more it benefits from the compounding effect.
Current Market Capitalization
As of now, Extra Space Storage holds a market capitalization of around $31.23 billion. This financial strength contributes to confidence among investors and potential growth prospects as the company continues to expand its real estate investments in the storage sector.
Key Takeaways for Investors
Investing wisely, especially in the right sectors, can lead to significant wealth creation. Extra Space Storage exemplifies how making informed decisions today can result in impressive profits tomorrow. Investors are encouraged to look at both past performance and future potential when choosing where to invest their money.
Frequently Asked Questions
What is the market capitalization of Extra Space Storage?
The current market capitalization of Extra Space Storage is approximately $31.23 billion.
How much would a $1000 investment in EXR be worth today?
A $1000 investment in Extra Space Storage fifteen years ago would be valued at around $8,869.80 today.
What is the average annual return of EXR?
Extra Space Storage has an average annual return of 15.44% over the past 15 years.
Why is compounding important in investing?
Compounding allows investments to grow exponentially over time, significantly increasing the value of an initial investment.
How has EXR performed compared to the market?
EXR has outperformed the market by 3.06% on an annualized basis over the past 15 years.
About The Author
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