The investment time machine to calculate historical returns

eToro has launched a new service, the so-called Investment Time Machine.

It is a tool that allows you to analyse the performance over the past years of 35 very popular equities, to find out how investments made at different times on those stocks could have gone over time.

Thanks to this “Investment Time Machine” it is possible to get an idea of how much money could have been earned by investing a certain amount of money in a certain security at a given time and selling it after a set period of time.

By selecting a security, and allocating a portion of the fictitious Crypto Bull available to make the calculation, it is possible to go back in time to calculate the historical return on a hypothetical investment made on that security, on that date, and with that capital.

The reference example could be that of Ronald Wayne who sold his 10% share of Apple for $800 in 1976. If Wayne had not sold his shares at that time, they would now be worth $200 billion.

The two other co-founders of the company, who bought Wayne’s shares for $800, ended up with a value of $177.8 million only 4 years later, at the time of the company’s IPO, with a return of 22.224%.

eToro’s investment time machine

eToro’s market analyst in Italy, Edoardo Fusco Femiano, explains:

“The Investment Time Machine is not financial software, but something we have enjoyed developing to show how the value of a brand or company evolves over the years, analyzing a selection of 35 popular stocks and their performance from 1991 (if they were already listed) to the present day. Today access to the financial markets is easier than ever: we may not be able to understand what the next Apple will be, but with a few tricks you can be successful, among the basic rules to follow, certainly that of focusing on the companies you know best from a financial and structural point of view and choose who you think can be successful in the long run”.