Nifty Fifty
Encyclopedia
Nifty Fifty was an informal term used to refer to 50 popular 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.
The fifty are credited with propelling the bull market of the early 1970s. Most are still solid performers, although a few are now defunct or otherwise worthless.
The long bear market of the 1970s that 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. 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.
Because of the under-performance of most of the nifty fifty list, it is often cited as an example of unrealistic investor expectations. However, those who held on until the late 1990s bull market when many of the stocks return to market valuations.
The most common characteristic by the constituents were solid earnings growth for which these stocks were assigned extraordinary high price-earnings ratios. Fifty times earnings was not uncommon.
NIFTY means National Index for Fifty
New York Stock Exchange
The New York Stock Exchange is a stock exchange located at 11 Wall Street in Lower Manhattan, New York City, USA. It is by far the world's largest stock exchange by market capitalization of its listed companies at 13.39 trillion as of Dec 2010...
in the 1960s and 1970s that were widely regarded as solid buy and hold
Buy and hold
Buy and hold is a long-term investment strategy based on the view that in the long run financial markets give a good rate of return despite periods of volatility or decline. This viewpoint also holds that short-term market timing, i.e...
growth stocks.
The fifty are credited with propelling the bull market of the early 1970s. Most are still solid performers, although a few are now defunct or otherwise worthless.
The long bear market of the 1970s that 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. 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.
Because of the under-performance of most of the nifty fifty list, it is often cited as an example of unrealistic investor expectations. However, those who held on until the late 1990s bull market when many of the stocks return to market valuations.
Characteristics
The stocks were often described as "one-decision", as they were viewed as extremely stable, even over long periods of time.The most common characteristic by the constituents were solid earnings growth for which these stocks were assigned extraordinary high price-earnings ratios. Fifty times earnings was not uncommon.
NIFTY means National Index for Fifty
NYSE Nifty Fifty constituents
- Note: There is no official version of companies comprising the list.
- American ExpressAmerican ExpressAmerican Express Company or AmEx, is an American multinational financial services corporation headquartered in Three World Financial Center, Manhattan, New York City, New York, United States. Founded in 1850, it is one of the 30 components of the Dow Jones Industrial Average. The company is best...
- American Home ProductsWyethWyeth, formerly one of the companies owned by American Home Products Corporation , was a pharmaceutical company. The company was based in Madison, New Jersey, USA...
- American ly Corp.
- AMP Inc.Tyco ElectronicsTE Connectivity, Ltd., previously known as Tyco Electronics, Ltd., and formerly a segment of Tyco International, is a leading global provider of engineered electronic components, network solutions, undersea telecommunication systems, and specialty products for customers in more than 150 countries...
- Anheuser-BuschAnheuser-BuschAnheuser-Busch Companies, Inc. , is an American brewing company. The company operates 12 breweries in the United States and 18 in other countries. It was, until December 2009, also one of America's largest theme park operators; operating ten theme parks across the United States through the...
- Avon ProductsAvon ProductsAvon Products, Inc. is a US cosmetics, perfume and toy seller with markets in over 140 countries across the world and sales of $9.9 billion worldwide as of 2007.-Business Model:...
- Baxter InternationalBaxter InternationalBaxter International Inc. , is an American health care company with headquarters in Deerfield, Illinois. The company primarily focuses on products to treat hemophilia, kidney disease, immune disorders and other chronic and acute medical conditions...
- Black & DeckerBlack & DeckerBlack & Decker Corporation is a corporation based in Towson, Maryland, United States, that designs and imports power tools and accessories, hardware and home improvement products, and technology based fastening systems...
- Bristol-MyersBristol-Myers SquibbBristol-Myers Squibb , often referred to as BMS, is a pharmaceutical company, headquartered in New York City. The company was formed in 1989, following the merger of its predecessors Bristol-Myers and the Squibb Corporation...
- Burroughs Corporation
- Chesebrough-Ponds
- The Coca-Cola CompanyThe Coca-Cola CompanyThe Coca-Cola Company is an American multinational beverage corporation and manufacturer, retailer and marketer of non-alcoholic beverage concentrates and syrups. The company is best known for its flagship product Coca-Cola, invented in 1886 by pharmacist John Stith Pemberton in Columbus, Georgia...
- Digital Equipment CorporationDigital Equipment CorporationDigital Equipment Corporation was a major American company in the computer industry and a leading vendor of computer systems, software and peripherals from the 1960s to the 1990s...
- Dow Chemical
- Eastman KodakEastman KodakEastman Kodak Company is a multinational imaging and photographic equipment, materials and services company headquarted in Rochester, New York, United States. It was founded by George Eastman in 1892....
- Eli Lilly and CompanyEli Lilly and CompanyEli Lilly and Company is a global pharmaceutical company. Eli Lilly's global headquarters is located in Indianapolis, Indiana, in the United States...
- Emery Air FreightEmery WorldwideEmery Worldwide was a cargo airline, once one of the leading carriers in the cargo airline world. Its headquarters were located in Redwood City, California....
- First National City BankCitibankCitibank, a major international bank, is the consumer banking arm of financial services giant Citigroup. Citibank was founded in 1812 as the City Bank of New York, later First National City Bank of New York...
- General ElectricGeneral ElectricGeneral Electric Company , or GE, is an American multinational conglomerate corporation incorporated in Schenectady, New York and headquartered in Fairfield, Connecticut, United States...
- Gillette
- HalliburtonHalliburtonHalliburton is the world's second largest oilfield services corporation with operations in more than 70 countries. It has hundreds of subsidiaries, affiliates, branches, brands and divisions worldwide and employs over 50,000 people....
- HeubleinHeubleinHeublein Inc. was an American producer and distributor of alcoholic beverages and food throughout the 20th century...
Brewing Company - IBM
- International Flavors and FragrancesInternational Flavors and FragrancesInternational Flavors & Fragrances is a major producer of flavors and fragrances with sales of $2.6 billion in .Major competitors include Firmenich, Givaudan, and Symrise. IFF is a member of the S&P 500.-History:...
- International Telephone and TelegraphITT CorporationITT Corporation is a global diversified manufacturing company based in the United States. ITT participates in global markets including water and fluids management, defense and security, and motion and flow control...
- J.C. PenneyJ.C. PenneyJ. C. Penney Company, Inc. is a chain of American mid-range department stores based in Plano, Texas, a suburb north of Dallas. The company operates 1,107 department stores in all 50 U.S. states and Puerto Rico. JCPenney also operates catalog sales merchant offices nationwide in many...
- Johnson & JohnsonJohnson & JohnsonJohnson & Johnson is an American multinational pharmaceutical, medical devices and consumer packaged goods manufacturer founded in 1886. Its common stock is a component of the Dow Jones Industrial Average and the company is listed among the Fortune 500....
- Louisiana Land and Exploration
- LubrizolLubrizolThe Lubrizol Corporation, a Berkshire Hathaway company, is a specialty chemical company that produces and supplies technologies, which are designed to improve the quality and performance of products in the global transportation, industrial and consumer markets...
- Minnesota Mining and Manufacturing3M3M Company , formerly known as the Minnesota Mining and Manufacturing Company, is an American multinational conglomerate corporation based in Maplewood, Minnesota, United States....
(3M) - McDonald's
- Merck & Co.Merck & Co.Merck & Co., Inc. , also known as Merck Sharp & Dohme or MSD outside the United States and Canada, is one of the largest pharmaceutical companies in the world. The Merck headquarters is located in Whitehouse Station, New Jersey, an unincorporated area in Readington Township...
- MGIC Investment Corporation
- PepsiCoPepsiCoPepsiCo Inc. is an American multinational corporation headquartered in Purchase, New York, United States, with interests in the manufacturing, marketing and distribution of grain-based snack foods, beverages, and other products. PepsiCo was formed in 1965 with the merger of the Pepsi-Cola Company...
- Pfizer
- Philip Morris Cos.Altria GroupAltria Group, Inc. is based in Henrico County, Virginia, and is the parent company of Philip Morris USA, John Middleton, Inc., U.S. Smokeless Tobacco Company, Inc., Philip Morris Capital Corporation, and Chateau Ste. Michelle Wine Estates. It is one of the world's largest tobacco corporations...
- PolaroidPolaroid CorporationPolaroid Corporation is an American-based international consumer electronics and eyewear company, originally founded in 1937 by Edwin H. Land. It is most famous for its instant film cameras, which reached the market in 1948, and continued to be the company's flagship product line until the February...
- Procter & GambleProcter & GambleProcter & Gamble is a Fortune 500 American multinational corporation headquartered in downtown Cincinnati, Ohio and manufactures a wide range of consumer goods....
- RevlonRevlonRevlon is an American cosmetics, skin care, fragrance, and personal care company founded in 1932.-History:Revlon was founded in the midst of the Great Depression, 1932, by Charles Revson and his brother Joseph, along with a chemist, Charles Lachman, who contributed the "L" in the Revlon name...
- Schering PloughSchering-PloughSchering-Plough Corporation was a United States-based pharmaceutical company. It was founded in 1851 by Ernst Christian Friedrich Schering as Schering AG in Germany. In 1971, the Schering Corporation merged with Plough to form Schering-Plough. On November 4, 2009 Merck & Co...
- Joe Schlitz Brewing
- SchlumbergerSchlumbergerSchlumberger Limited is the world's largest oilfield services company. Schlumberger employs over 110,000 people of more than 140 nationalities working in approximately 80 countries...
- Sears, Roebuck and CompanySears, Roebuck and CompanySears, officially named Sears, Roebuck and Co., is an American chain of department stores which was founded by Richard Warren Sears and Alvah Curtis Roebuck in the late 19th century...
- Simplicity PatternSimplicity PatternThe Simplicity Pattern Company is a manufacturer of sewing pattern guides, under the "Simplicity Pattern," "It's So Easy" and "New Look" brands. The company, now owned by Wrights, began in 1927 in New York City. During the Great Depression, Simplicity allowed home seamstresses to create...
- SquibbBristol-Myers SquibbBristol-Myers Squibb , often referred to as BMS, is a pharmaceutical company, headquartered in New York City. The company was formed in 1989, following the merger of its predecessors Bristol-Myers and the Squibb Corporation...
- S.S. KresgeKmartKmart, sometimes styled as "K-Mart," is a chain of discount department stores. The chain acquired Sears in 2005, forming a new corporation under the name Sears Holdings Corporation. The company was founded in 1962 and is the third largest discount store chain in the world, behind Wal-Mart and...
- Texas InstrumentsTexas InstrumentsTexas Instruments Inc. , widely known as TI, is an American company based in Dallas, Texas, United States, which develops and commercializes semiconductor and computer technology...
- UpjohnUpjohnThe Upjohn Company was a pharmaceutical manufacturing firm founded in 1886 in Kalamazoo, Michigan by Dr. William E. Upjohn, an 1875 graduate of the University of Michigan medical school. The company was originally formed to make friable pills, which were specifically designed to be easily digested...
- The Walt Disney CompanyThe Walt Disney CompanyThe Walt Disney Company is the largest media conglomerate in the world in terms of revenue. Founded on October 16, 1923, by Walt and Roy Disney as the Disney Brothers Cartoon Studio, Walt Disney Productions established itself as a leader in the American animation industry before diversifying into...
- XeroxXeroxXerox Corporation is an American multinational document management corporation that produced and sells a range of color and black-and-white printers, multifunction systems, photo copiers, digital production printing presses, and related consulting services and supplies...
- American Express