(MONEY Magazine) – Many of the blue-chip growth stocks known as the Nifty Fifty have outpaced the S&P 500, even if you measure from December 1972, when glamour stocks were near peak price/earnings ratios. The stocks are listed in order of their long-term returns.

--Elyssa Lee

ANNUAL RETURN P/E IN P/E IN COMPANY (TICKER SYMBOL) SINCE 1972 1972 1998

Pfizer (PFE) 19.0% 28.4 59.0 Philip Morris (MO) 18.4 24.0 15.1 Gillette (G) 18.3 24.3 44.3 Bristol-Myers (BMY) 17.6 24.9 33.9 Coca-Cola (KO) 17.2 46.4 49.0 PepsiCo (PEP) 16.9 27.6 36.1 Merck (MRK) 16.4 43.0 31.3 Squibb (BMY) 16.3 30.1 33.9 Heublein 16.1 29.4 N.M. General Electric (GE) 16.0 23.4 32.5 Schering (SGP) 15.9 48.1 42.0 Procter & Gamble (PG) 14.0 29.8 31.8 Eli Lilly (LLY) 14.0 40.6 39.0 American Home Products (AHP) 13.8 36.7 26.6 Chesebrough-Pond's (UL) 13.8 39.1 26.4 Revlon 13.7 25.0 N.M. Johnson & Johnson (JNJ) 12.9 57.1 28.1 McDonald's (MCD) 12.7 71.0 26.6 Walt Disney (DIS) 12.7 71.2 37.6 First National City (CCI) 12.7 20.5 18.7 Anheuser-Busch (BUD) 12.4 31.5 19.8 Schlumberger (SLB) 12.2 45.6 24.7 American Express (AXP) 12.0 37.7 23.5 Dow Chemical (DOW) 11.5 24.1 12.3 American Hospital Supply (BAX) 10.5 48.1 21.8 Upjohn (PNU) 10.1 38.8 71.0 J.C. Penney (JCP) 9.4% 31.5 33.5 Texas Instruments (TXN) 9.2 39.5 22.6 3M (mmm) 9.2 39.0 15.7 Intl. Telephone & Telegraph (HOT) 9.0 15.4 N.M. Sears Roebuck (S) 8.6 29.2 21.2 AMP (AMP) 8.4 42.9 17.5 Halliburton (HAL) 8.3 35.5 22.1 Baxter Labs (BAX) 8.0 71.4 21.8 Lubrizol (LZ) 7.9 32.6 13.3 International Business Machines (IBM) 7.8 35.5 18.5 Intl. Flavors & Fragrances (IFF) 7.5 69.1 22.3 Jos. Schlitz Brewing 7.2 39.6 N.M. Xerox (XRX) 6.8 45.8 22.5 Digital Equipment (CPQ) 5.4 56.2 28.6 Louisiana Land & Exploration (BR) 5.4 26.6 28.9 Simplicity Pattern 5.4 50.0 N.M. Avon Products (AVP) 5.0 61.2 39.1 Eastman Kodak (EK) 4.9 43.5 N.M. Black & Decker (BDK) 4.1 47.8 23.1 S.S. Kresge (KM) 4.0 49.5 35.0 Burroughs (UIS) 0.8 46.0 41.0 Polaroid (PRD) 0.0 94.8 25.6 Emery Air Freight (CNF) -0.1 55.3 16.9 MGIC Investment -7.5 68.5 N.M.

Nifty Fifty 13.1 41.9 29.2 S&P 500 13.3 18.4 28.0

Notes: Compound annual returns are based on Jeremy J. Siegel's calculations updated through June 15, 1998. In cases where companies were acquired, the proceeds were invested in the surviving firms; where there was no successor, money was invested in the S&P 500. Bristol-Myers merged with Squibb. The former Heublein is now part of Diageo. Schering merged with Plough. Chesebrough-Pond's is part of Unilever. Revlon was taken private. First National City is now Citicorp. American Hospital Supply was acquired by Baxter International. Upjohn merged with Pharmacia. ITT is part of Starwood Hotels & Resorts. Baxter Labs became Baxter International. Schlitz became part of privately held Stroh Brewery. Digital Equipment is part of Compaq. Louisiana Land & Exploration is part of Burlington Resources. Simplicity Pattern was taken private. Kresge is now K Mart. Burroughs became Unisys. Emery Air Freight became a part of CNF Transportation. MGIC became a part of Baldwin-United, which went bankrupt. Some 1998 price/earnings ratios are for successor firms; in some cases, P/Es are MONEY estimates adjusted for nonrecurring losses. N.M.--Not meaningful