Have you ever wondered how much money you would have if you invested $1 a day since you were born? I certainly have and I got really excited when I stumbled upon the ‘dollar a day’ calculator over at the stockchocker website. The calculator lets you put in your birthday and shows how much money you would have if you invested one dollar a day in the US market. You an sole play around with it to see how much you would have if you started investing on your 18th birthday or since you started working full time. What is amazing is that I currently have more money in my portfolio than I would have if I simply invested $1 in the stock market every day since I was born. Although by having started earlier, i would have gained the enormous benefit of compounding returns and my portfolio would be up a whopping 200%!
The stockchoker website has another great calculator which tells you the amount of money you could have made if you had bought a particular stock. You simply need to select the the stock, the invest date and the investment amount an this online calculator does the rest. For example, if you had bought $10,000 worth of Apple (AAPL) stock on 1 January 2000, your investment would be worth £300,721.90 today! That is an astonishing 23% annual gain.
The website goes one step further and lets you compare one stock with another using the ‘stock wars’ feature. I compared Coca Cola (KO) and Pepsi (PEP) for the period from 1 January 2000 to today. Over this period Pepsi was the better performing stock as it grew at an annualised rate of 9.19& compared to Coca Cola’s 5.46%. Every $10,000 invested in Pepsi would be worth $31,596 whilst that same amount invested in Coca Cola would be worth $13,656. This is a really great tool to play around with and to get a quick historical snapshot of the returns produced by various stocks!