If You’d Invested $1,000 in Home Depot Stock 44 Years Ago, Here’s How Much You’d Have Today

Fact checked by Stella Osoba

(IPO) in 1981, you would be sitting on shares worth more than $12 million today, thanks to the company’s extraordinary growth.

with high-quality stocks.

Brief History of Home Depot (HD)

Founded in 1978 by Bernie Marcus, Arthur Blank, Ken Langone, and Pat Farrah, HD has become the largest home improvement retailer in the U.S. It introduced warehouse-style stores, offering a wide range of tools, construction products, and appliances at competitive prices to fulfill its vision of creating a one-stop shop for do-it-yourself (DIY) enthusiasts.

The first stores opened in Atlanta, Georgia, in 1979, laying the groundwork for a business model centered on extensive product selection and exceptional customer service. The company went public in 1981, trading on the NASDAQ before transitioning to the NYSE in 1984 under the ticker HD. It rapidly expanded through organic growth and strategic acquisitions during the 1980s and 1990s.

Over the years, HD has prioritized innovation, enhancing its supply chain, growing its e-commerce presence, and investing in services for contractors and consumers alike. By 2025, it operated over 2,300 stores across the U.S., Canada, and Mexico. As a blue chip stock, HD is celebrated for its consistent financial performance, shareholder dividends, and its role as a key indicator of the housing and construction industries.

HD’s Stock Split History

Since its IPO in 1981, HD has executed 13 stock splits, all occurring before 1999. These splits, including multiple 2-for-1 and 3-for-2 splits, were implemented during periods of robust expansion and solidifying market dominance.

The final split occurred in 1999, after which HD shifted its focus to maintaining a higher stock price, rewarding shareholders through dividends and share buybacks instead.

HD’s Price Growth

HD’s huge share price growth since its IPO in 1981 is a testament to its status as a long-term wealth-building powerhouse.

A person who invested $1,000 at the time of its IPO (at $12 per share) would be sitting on shares worth over $12 million as of January 2025, a return of 1.2 million percent. (This excludes the companies many cash dividends.) This remarkable growth reflects HD’s robust business model, market dominance, and consistent focus on shareholder value. Additionally, it reflects the potential of investing early in high-quality companies and holding them through decades of growth and market cycles.

Pros and Cons of a Buy-and-Hold Strategy

The buy-and-hold investment strategy is a time-tested approach that allows investors to benefit from the long-term growth of strong companies, such as HD. By maintaining ownership through market cycles, investors can leverage consistent growth, rising dividends, and compounding returns while minimizing transaction costs and tax liabilities. However, this strategy requires patience, resilience during periods of market volatility, and a thorough understanding of a company’s fundamentals to reduce market risks or opportunity costs.

Pros

• Long-Term Growth Potential

• Reduced Trading Costs

• Dividend Income

• Lower Tax Liability

• Compounding Returns

Cons

• Market Risk

• Opportunity Cost

• Heavy Dependence on Fundamental Analysis

• Concentration Risk

The Bottom Line

HD’s incredible journey underscores the power of identifying and holding onto high-quality stocks for the long term. A $1,000 investment at its IPO in 1981 demonstrates the wealth building potential of a buy-and-hold strategy, particularly for companies with strong fundamentals, consistent growth, and shareholder-focused policies.

While this approach requires patience and a steady hand during market volatility, the rewards can far outweigh the risks, making it a key consideration for long-term investors seeking lasting financial success.