Did you know that if you had invested NIS 100,000 10 years ago in the clothing company FMS, your investment would now be worth NIS 2.2 million?
Everyone knows that wisdom in hindsight cannot be bettered, but maybe something could be learned from looking back, if not to improve one's portfolio, then just for fun.
Yesterday, the Tel Aviv Stock Exchange's research department issued a report listing those companies that had produced the best returns over the past decade, from 1995-2004. They were Delek Automotive, FMS, Frutarom, Lipman Electronics and Retalix. These five companies managed to achieve annual average real returns in that period of 30 to 40 percent.
Yitzhak Tshuva's Delek Automotive tops the list. Delek, importer of Mazda and Ford cars, is managed by Gil Agmon, who is widely regarded as the leading and most talented figure in the field. Delek Automotive achieved annual returns of 38 percent.
FMS, which went public in 1992, is in one of the hottest fields, certainly in recent years - security. FMS manufactures and supplies technologically advanced lightweight ballistic armor materials. Its market cap has reached NIS 1.5 billion after its share soared more than 160 percent this year.
Frutarom, split off from Electrochemical Industries in 1996, is now controlled by American investor John Farber. It manufactures flavors and fragrance compounds and ingredients for the food and cosmetics industries. Its cap has also surpassed NIS 1.5 billion, and although its share has been trading for less than nine years, it has risen in that time some 1,320 percent.
Lipman Electronic Engineering develops electronic payment systems, and successfully launched itself on Nasdaq this year. Over the 10-year period it achieved yields of 37 percent annually.
Fifth on the list is Retalix with annual returns of 30 percent. Since its stock issue on Nasdaq earlier this year, the developer of software solutions for the retail industry has seen its value leap beyond NIS 1 billion, the minimum to get onto this TASE list. Recently Retalix' cap passed NIS 1.4 billion, and its accumulated real return over the period reached 1,240 percent.
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