Valuable brands deliver superior shareholder returns
A rising market might lift all stocks—but not to the same level. Not even close. The BrandZ™ China Top 100 Portfolio, which includes all the brands in the China Top 100 ranking, has increased 179.1 percent since July 2010, almost three times the rate of the MSCI China Index, which increased only 61.6 percent over the same period.
Even more striking, the BrandZ™ China Top Brands by Brand Contribution Portfolio increased 290.8 percent, almost five times the rate of the MSCI. The Brand Contribution Portfolio includes the brands in the BrandZ™ China Top 100 with the highest scores in Brand Contribution. Brand Contribution is a BrandZ™ measurement of brand strength, the influence of brand alone on earnings, with other factors stripped away.
These results demonstrate that the investments brands make to build value are measurably rewarded in the stock market. Valuable brands deliver superior shareholder returns: $100 invested in the MSCI China in 2010 would be worth around $162 today. That $100 invested in the BrandZ™ China Top 100 would be worth $279, and it would be worth around $391 invested in the Brand Contribution Portfolio.