What if you invested $1000 in Nvidia 20 years ago?

Investing $1000 in NVDA 20 years ago would have resulted in a significant fortune, highlighting the power of compounding returns. Here’s a breakdown of the calculation:

1. **Initial Investment**: $1000.
2. **Years Invested**: 20 years.
3. **Average Annual Return Rate**: 30% or 0.30.
4. **Future Value Calculation**:
- Using the formula: **Future Value = Initial Investment \* (1 + Average Annual Return Rate) **Years**.
- Plugging in the values: **Future Value = $1000 \* (1 + 0.30) **20** = $190,049.64**.

Thus, a $1000 investment in NVDA 20 years ago, earning an average annual return of 30%, would have grown to approximately $190,049.64. This example underscores the importance of starting early and staying invested in high-growth opportunities like NVDA.