If you’ve ever spotted an empty can of energy drink in your teenager’s car or bedroom, congratulations - you might have had a front-row seat to one of the greatest investment stories of recent times. Without even knowing it, your thirsty teenager may have been fuelling the meteoric rise of Monster Beverage Corporation (NASDAQ: MNST) - the world’s best-performing share of the past two decades.
Lurking in the shadows
In an era dominated by headlines about tech titans like Apple, Nvidia and Amazon, Monster has been the stealth champion. From 2005 to 2025, the company delivered an eye-watering total return of 8,506%, equivalent to an average annual return of 25%. To put that in perspective: a NZ$10,000 investment in Monster back then would now be worth almost NZ$860,600.
Monster’s incredible run has earned it the title of top-performing share in the Russell 1000 index over the past 25 years — outperforming all the household tech names. Yet, it remains largely under the radar of mainstream investors.
Fuelling the growth
Monster’s success didn’t come by accident. Instead, it was the result of strategic focus and relentless execution:
• Product innovation: The company consistently refreshed its energy drink range, adding new flavours, low-sugar versions, and health-conscious options that resonated with changing consumer tastes.
• Targeted branding: Monster found its niche by aligning itself with youth and extreme sports culture. Sponsoring skateboarding, motocross, music festivals and e-sports helped build a fiercely loyal global following.
• Global distribution: A strategic partnership with Coca-Cola gave Monster access to a vast international distribution network, accelerating its growth into more than 100 countries.
These moves didn’t just grow earnings — they built an iconic brand with real staying power.
How to tame a taniwha
What makes the Monster story so extraordinary is how unusual it is to spot companies like this early. Unlike the mega-cap tech firms whose every move is scrutinised in the media, companies like Monster often fly under the radar - until their performance becomes impossible to ignore.
And that’s where skilled fund managers come in.
While many DIY investors tend to focus on well-known brands, experienced fund managers dig deeper. They conduct robust research, assess market trends, and identify businesses with strong growth potential before the rest of the market catches on. This approach is underpinned by a deep understanding of the fundamentals - from financials to competitive advantages - and a thorough, in-depth analysis of each company they invest in.
Why it matters to you
Monster’s rise is a powerful reminder that the biggest winners aren’t always the flashiest - and that opportunity often lies in the overlooked. But finding those hidden gems requires time, expertise, and insight.
As legendary Wall St investor Peter Lynch says, sometimes the best ideas are right in front of you. Retail investors can find those hidden gems but, if you're time poor, that’s where a growth fund manager like Pie Funds can help steer your portfolio toward strong performers.
We only recently invested in Monster ourselves and, frankly, we wish we’d owned it a lot longer. It’s a classic example of a business that quietly delivered exceptional returns while many investors were distracted elsewhere.
So whether you’re actively investing or simply curious about how fortunes are made, one thing is certain: behind every Monster-sized success story lies a clear strategy, deep knowledge of your target market and maybe just a little bit of fizz.
All calculations are by Pie Funds based on Bloomberg dataas at 27 May 2005 and 28 May 2025. Other information sources includemonsterbevcorp.com, investorshangout.com, 2080.ventures and latterly.org
Information is current as at 31 July 2025. Pie Funds Management Limited (“Pie Funds”) is the issuer and manager of the funds in the Pie Funds Management Scheme and the Pie KiwiSaver Scheme (“Schemes”), the product disclosure statements of which can be found at www.piefunds.co.nz. Any advice is given by Pie Funds and is general only. Our advice relates only to the specific financial products mentioned and does not account for personal circumstances or financial goals. Please see a financial adviser for tailored advice. You may have to pay product or other fees, like brokerage, if you act on any advice. As manager of the Schemes, we receive fees determined by your balance and we benefit financially if you invest in our products. We manage this conflict of interest via an internal compliance framework designed to help us meet our duties to you. For information about how we can help you, our duties and complaint process and how disputes can be resolved, or to see our disclosure statement, please visit www.piefunds.co.nz. Please let us know if you would like a hard copy of this disclosure information.