Also see our update on this topic, posted November 2, 2010

If you invested $1,000 in the S&P 500 and $1,000 in a representative group of publicly-traded automotive aftermarket companies on January 1, 2008, how would your investment look today? You may be surprised. Starting with a baseline of January 2008, Hedges & Company tracked over 20 publicly-traded automotive aftermarket companies and compared that to the S&P 500. As the chart  reveals, the downturn in the economy devastated the S&P 500 but the stock value of aftermarket companies did very well starting in the summer of 2009.

Comparing the aftermarket stock index to the S&P 500

The automotive aftermarket has been a much better investment since January 2008 than the S&P 500.

To put this in perspective this chart includes the major market crashes from September and October 2008 as the financial crisis started unfolding.

A $1,000 investment in the S&P 500 on January 1, 2008 would have yielded a -23% return leaving just $765.28 by September 1, 2010. However, a $1,000 on January 1, 2008 in the publicly-traded companies that make up the Hedges & Company Aftermarket Index would have yielded a 35% return resulting in $1,346.29. Both examples exclude stock dividends or commissions. Stock symbols for some of the aftermarket companies included in the H&C Aftermarket Index include: AAP, ABG, ATAC, AZO, CRV, DORM, GNAU, GPC, HWK, LAD, MNRO, MYE, ORLY, PBY, PRTS, SAH, SMP, and UNS.

Financial disclaimer: Hedges & Company is not attempting to give any financial advice; investments are subject to risk; carefully review and consider a prospectus before making any investment decisions. Full disclosure: Hedges & Company principals do not directly own stock in any of the companies listed.

4 replies
  1. Dee
    Dee says:

    Interesting analysis! In light of the market conditions within the automotive aftermarket. Your example shows the strength of private business!

  2. Mark
    Mark says:

    Great comparison of the broad, general stock market vs. the automotive aftermarket segment. This is just the sort of good news on our industry that you rarely see reported anywhere. Darn, I should have invested back in 2008!

  3. Kris
    Kris says:

    I had been arguing with my close friend on this issue for quite a while, based on your ideas it proves that I am right, let me show him your web page, I am sure he’ll have to buy me a drink, lol, thanks.

    – Kris

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