Massive IPOs Deliver Meager Returns While Small Stakes Compound

SpaceX's record-breaking $85.7 billion IPO has returned less than 5% since pricing at $135 in June, a stark contrast to Walmart's tiny 1970 IPO.

A $1,000 investment in Walmart at the time would now be worth approximately $38.4 million before dividends, after 12 stock splits.

Nvidia's IPO in 1999 is another example of long-term wealth creation, with a $1,000 stake turning into roughly $8.7 million to $9 million after six splits, compounding at about 39% annually.

The contrast between Nvidia and Walmart's returns highlights the importance of revenue growth, margins, and execution in determining long-term value.