10 years to $1 billion: Step 6, MEMC Electronic Materials (WFR)

Posted Aug 31st 2007 10:10AM by Beth Gaston Moon
Filed under: Market Matters, Rich in America, Personal Finance

Here we are at the halfway point of our experiment to see how fast a portfolio would grow if the perfect stock pick was made each year for 10 years. From $100 invested at the beginning of 1997, we'd begin 2002 with nearly $3.5 million. Winning picks in the first five years of this game have emerged from the Internet, telecom, healthcare, and electronics sectors.

MEMC Electronic Materials WFR's performance for 2002

MEMC Electronic Materials WFR's performance for 2002

2002 proved to be rock bottom for the U.S. markets and our portfolio, as the best-performing stock rallied "only" 113% during the year. That pick was MEMC Electronic Materials (NYSE: WFR), which manufactures silicon wafers for semiconductor companies. At the turning of the year, WFR was trading at $3.56, and 952,930 shares were scooped up. After its 113% gain, the shares were trading at $7.57, and the portfolio was valued at $7,213,680.

In mid-October, the S&P 500 Index reached what would prove to be a significant market bottom, and buying power was again drifting into the market. Would the renewed sense of bullishness have a positive effect on our portfolio?

Next: Step 7: Akamai Technologies (AKAM), 2003

Beth Gaston Moon is an analyst at Schaeffer's Investment Research.

Tags: 10 years to $1 billion, 10YearsTo$1Billion, investing, portfolio growth, PortfolioGrowth, WFR