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3 Local Shares that Beat Google’s 1,081% Gain over the Past 10 Years

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On 19 August 2004, Google Inc made its debut at the NASDAQ stock exchange in USA in a hotly anticipated IPO. Since its closing price that day, shares of the search engine giant have climbed an incredible 1,181% 1,081% as of 22 August 2014.

Currently, Google is the third largest listed company in America, with a market cap equivalent to S$495 billion (or US$396.3 billion). To put this into perspective, the largest company in Singapore’s share market, Singapore Telecommunications Limited (SGX: Z74), sports a market cap of S$61.4 billion as of last Friday’s closing price.

By almost any measure, Google has turned out to be an incredible investment since its IPO. But, there were local shares which actually topped that!

A heroic trio!

Below are the comparable returns of three such local shares: Vicom Limited (SGX: V01), Raffles Medical Group Ltd. (SGX: R01), and Sim Lian Group Ltd (SGX: S05).

Company Total returns*
Vicom 1,294% 1,194%
Raffles Medical 1,386% 1,286%
Sim Lian 1,617% 1,517%
Google (based on ticker NASDAQ:GOOGL) 1,187% 1,081%

*Prices used are the closing  prices for 19 August 2004 and 22 August 2014

Source: S&P Capital IQ

Vicom is Singapore’s leading provider of technical testing and inspection services (especially for vehicles). Over the past decade, the company has been able to grow its non-vehicular inspection and testing arm, Setsco, into a major contributor to its revenue and profits. As of last Friday’s closing price, it trades at a price to earnings (PE) ratio of 19.9 and has a dividend yield of 2.55%.

As Singapore’s leading medical group and the largest private group practice, Raffles Medical has also quietly outperformed the internet giant. The company has managed to expand its network of clinics and variety of healthcare services en route to its 1,386% 1,286% return. As of last Friday’s closing price, it trades at a PE ratio of 31.4 and has a dividend yield of 1.37%.

Sim Lian is a developer of residential, industrial, and commercial real estate projects. The company has undertaken more than S$2 billion worth of contracts since its founding in 1976. As of last Friday’s closing price, it trades at a PE ratio of 5.4, a price-to-book ratio of 0.9551, and has a dividend yield of 5.35%.

Foolish bottom line

If our dear reader is in awe of the multi-bagging returns of Google, we should also mention that there were only 10 other companies in the US stock exchange which managed to beat its gargantuan returns over the same timeframe. After all, it takes a truly rare breed of company to achieve a 27.9% 26.8% compounded annualised return for an entire decade.

In light of that, it’d likely be very useful for investors to learn from the success of Google. So, stay tuned as I explore lessons we can take away from the internet giant’s stunning ascent.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Chin Hui Leong owns shares in Google (GOOGL and GOOG).