Valuable brands deliver superior shareholder returns
BrandZ™ Portfolio outperforms the S&P 500 Index and the MSCI World
The value of the BrandZ™ Strong Brands Portfolio increased 124.9 percent between April 2006 and April 2017, outperforming both the S&P 500, which grew 82.1 percent, and the MSCI World Index, which grew 34.9 percent. (The MSCI World Index is a weighted index of global stocks.)
The exceptional performance of the BrandZ™ Strong Brands Portfolio relative to two well-regarded indexes
affirms that valuable brands deliver superior returns over time, and regardless of market disruptions. It also demonstrates the positive return on money invested to build meaningfully different and salient brands.
In concrete terms, $100 invested in 2006 would be worth $135 today based on the MSCI World Index growth rate, and $182 based on the S&P 500 growth rate. But that $100 invested in the BrandZ™ Strong Brand Portfolio would have more than doubled in value, to $225.
The key takeaways for brand owners and brand marketers are: companies that invest in building valuable brands grow their top line faster, and organic top-line growth is the greatest determinant of total shareholder return.