Investing in the stock market is a great way to build wealth. Diversifying your holdings by including some high-quality stocks with proven track records of success can be a smart decision. You want to seek out companies with sound businesses, strong competitive advantages, and the ability to basically print cash year in and year out.
Progressive (NYSE: PGR) is one company that fits this bill. The insurer is a dominant player in the industry, and its performance has been incredible. Investors who bought $1,000 worth of Progressive in 1990 would’ve seen their investment grow to $4.69 million today. Here’s what makes it such a great stock.
Progressive bucked a trend in the insurance industry in 1965. Unlike many insurers that traditionally aimed to break even on policies and profit mainly from investments, Progressive, under then-CEO Peter B. Lewis, committed to consistently underwriting profitable policies.