World Library  
Flag as Inappropriate
Email this Article

Nifty Fifty

Article Id: WHEBN0000156269
Reproduction Date:

Title: Nifty Fifty  
Author: World Heritage Encyclopedia
Language: English
Subject: Nifty, Advance–decline line, Motilal Oswal Group, Earnings growth, Economic bubbles
Collection: Economic Bubbles, Economic History of the United States, Stock Market
Publisher: World Heritage Encyclopedia
Publication
Date:
 

Nifty Fifty

Nifty Fifty refers to the 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.[1]

Because 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. However, those who held on until the late 1990s bull market saw many of the stocks return to correct valuations.[2]

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 composing the list.[1]

References

  1. ^ a b Fesenmaier, Jeff; Smith, Gary. "The Nifty-Fifty Re-Revisited". Retrieved 2012-02-05. 
  2. ^ Siegel, Jeremy. "Valuing Growth Stocks: Revisiting the Nifty-Fifty". Retrieved 2012-02-05. 
This article was sourced from Creative Commons Attribution-ShareAlike License; additional terms may apply. World Heritage Encyclopedia content is assembled from numerous content providers, Open Access Publishing, and in compliance with The Fair Access to Science and Technology Research Act (FASTR), Wikimedia Foundation, Inc., Public Library of Science, The Encyclopedia of Life, Open Book Publishers (OBP), PubMed, U.S. National Library of Medicine, National Center for Biotechnology Information, U.S. National Library of Medicine, National Institutes of Health (NIH), U.S. Department of Health & Human Services, and USA.gov, which sources content from all federal, state, local, tribal, and territorial government publication portals (.gov, .mil, .edu). Funding for USA.gov and content contributors is made possible from the U.S. Congress, E-Government Act of 2002.
 
Crowd sourced content that is contributed to World Heritage Encyclopedia is peer reviewed and edited by our editorial staff to ensure quality scholarly research articles.
 
By using this site, you agree to the Terms of Use and Privacy Policy. World Heritage Encyclopedia™ is a registered trademark of the World Public Library Association, a non-profit organization.
 


Copyright © World Library Foundation. All rights reserved. eBooks from Project Gutenberg are sponsored by the World Library Foundation,
a 501c(4) Member's Support Non-Profit Organization, and is NOT affiliated with any governmental agency or department.