SourceOne Stock Info  Your one source site for stock research

 

 

 

 

 

The Nifty Fifty

 

The Nifty Fifty

The Nifty Fifty were fifty stocks listed on the New York Stock Exchange that propelled the bull market of the early 1970s. Most are still solid performers, though a few are now defunct or otherwise worthless, and some others have been acquired by or merged with other companies.

 

American Express

J.C. Penney

American Home Products

Johnson & Johnson

AMP

Louisiana Home and Exploration

Anheuser-Busch

Lubrizol

Avon Products

Minnesota Mining and Manufacturing (3M)

Baxter Labs

McDonald's

Black & Decker

Merck & Co.

Bristol-Myers

M.G.I.C. Investment Corporation

Burroughs

PepsiCo

American Hospital Supply Corp.

Pfizer

Chesebrough-Ponds

Philip Morris Cos.

The Coca-Cola Company

Polaroid

Digital Equipment Corporation

Procter & Gamble

Dow Chemical

Revlon

Eastman Kodak

Schering Plough

Eli Lilly and Company

Joe Schlitz Brewing

Emery Air Freight

Schlumberger

First National City Bank

Sears Roebuck & Co.

General Electric

Simplicity Patterns

Gillette

Squibb

Halliburton

S.S. Kresge

Heublein Brewing Company

Texas Instruments

IBM

Upjohn

International Flavors and Fragrances

The Walt Disney Company

International Telephone and Telegraph

Xerox

 

 

The idea behind the Nifty Fifty is believed to have come out of the bull market of 1972 when

brokerage firm, Kidder Peabody*, published its first monthly list of high-P/E blue-chip growth

stocks.

The Nifty Fifty were thought of as nearly “fail-safe” stocks: No matter what kind of volatility

the market went through, they were supposed to weather the storm and still make money

for investors. The original list, which sold for between 46 and 92 times trailing earnings,

included Wal-Mart, Hewlett Packard, Automatic Data Processing  and Eli Lilly.

 

How did the original Nifty Fifty fare over the long term? Not greatest. In 1996 the group only broke

even against the S&P 500, were it not for one exceptional stock, Wal-Mart, which rose

15,854%.


* Eventually acquired by PaineWebber, which was then acquired by UBS Warburg.

 

 

 

 

 

 

 

Are you being told the truth?