The S&P 500 is a wealth generating machine over the long term. But investors are finding out the hard way it's possible to lose big, too.
Ten S&P 500 stocks, including Viatris, Walgreens Boots Alliance and Paramount Global, lost 60% or more of their value in the past 10 years, says an Investor's Business Daily analysis of data from S&P Global Market Intelligence and MarketSurge.
It's a reminder of the importance of following sound rules to select stocks — and changing course if picks aren't working. Losses can quickly snowball if not limited.
"We believe diversification across asset classes, sectors and regions remains a prudent course for clients as part of a larger financial plan that reduces emotional decision-making from investing," said Zachary Hill, head of portfolio management at Horizon Investments.
Are You Investing Wrong?
If you're down on any S&P 500 stock after 10 years, there's an issue. More than 80% of stocks that traded in the past 10 years have gained in that time. And the S&P 500 is up 167.2%.
That's why owning shares of drugmaker Viatris has been so painful. Shares are down 88% in the past 10 years. That makes it the worst-performing S&P 500 stock in the past 10 years. Not surprisingly, the stock's numbers are terrible. Its RS Rating is down to just 19. Earnings are seen falling 16% this year, marking the seventh year in a row.
Drugstore chain Walgreens Boots Alliance is another disaster. Shares are down 87% in the past 10 years. The stock is bouncing back lately, but it's still down long term. The RS Rating is 73. Analysts think earnings will fall 42% this year.
All this isn't to discourage you from investing. But you'll want to be fully aware of the risks in the long term.
Biggest S&P 500 Losers In Past 10 Years
| Company | Ticker | Sector | 10-year ch. |
|---|---|---|---|
| Viatris | VTRS | Health Care | -87.5% |
| Walgreens Boots Alliance | WBA | Consumer Staples | -86.8% |
| Paramount Global | PARA | Communication Services | -80.4% |
| APA | APA | Energy | -74.7% |
| Warner Bros. Discovery | WBD | Communication Services | -70.9% |
| Biogen | BIIB | Health Care | -70.2% |
| PG&E | PCG | Utilities | -67.3% |
| Norwegian Cruise Line | NCLH | Consumer Discretionary | -67.3% |
| Invesco | IVZ | Financials | -64.3% |
| Schlumberger | SLB | Energy | -62.4% |
