MENU

Macquarie’s shares hit $50

It’s taken three years to get back there but Macquarie Group’s (ASX: MQG) share price has again broken through the $50 mark.

For shareholders it’s been somewhat of a rollercoaster ride over the past decade. Back in 2004 the share price was trading below $40 before going on a tear towards $100 in mid-2007 prior to the global financial crisis (GFC) arriving. Then in the aftermath of the GFC, shareholders held on for dear life as the stock plunged all the way down to the mid-teens as short-sellers lined up to bet on the demise of the investment bank.

The rally over the past year in Macquarie’s share price will certainly have pleasd shareholders, however the firm’s performance compared with both the S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO) and peers over the past 10 years show that shareholders are still relatively worse off.

As the chart highlights, over the past decade the S&P/ASX 200 Index is up 63.4%; in comparison Macquarie’s share price has underperformed, increasing by 54.35%. Meanwhile Commonwealth Bank’s (ASX: CBA) shares are up a phenomenal 164.7% and Westpac Bank’s (ASX: WBC) shares have risen a stellar 101.3%.

mac

Source: Google Finance

Foolish takeaway

Of course historical share price performance does not tell investors too much about the potential future performance. A number of savvy investors believe that there is scope for Macquarie to significantly grow its earnings from current levels, which could lead to the investment bank outperforming going forward.

Looking for a stock which could outperform? Discover The Motley Fool’s favourite income idea for 2013-2014 in our brand-new, FREE research report, including a full investment analysis! Simply click here for your FREE copy of “The Motley Fool’s Top Dividend Stock for 2013-2014.”

More reading


Motley Fool contributor Tim McArthur owns shares in Macquarie Group.

5 ASX Stocks for Building Wealth After 50

I just read that Warren Buffett, the world’s best investor, made over 99% of his massive fortune after his 50th birthday.

It just goes to show you… it’s never too late to start securing your financial future.

And Motley Fool Chief Investment Advisor Scott Phillips just released a brand-new report that reveals five of our favourite ASX stocks for building wealth after 50.

– Each company boasts strong growth prospects over the next 3 to 5 years…

– Most importantly each pays a generous dividend, fully franked.

Simply click here to find out how you can claim your FREE copy of “5 ASX Stocks for Building Wealth After 50.”

See the stocks now