IN THIS ISSUE:
1. The Biggest Stock Winners of the Last 30 Years
2. Picking the Best Stocks is Extremely Difficult
3. Stay Diversified & Rely On Proven Professionals
4. Inflation Surged 6.8% Last Month, Most Since 1982
The vast majority of people who read my letter are investors. As such, most are at least somewhat familiar with the stock market. In following, most of my readers are aware that over any given period of time, most stocks tend to underperform their benchmarks, and only a much smaller, select group of stocks deliver the positive returns and create the wealth generated by equities over time.
The goal of most investors and professional investment advisors is to try to identify those stocks which are delivering positive returns and avoid those which are underperforming. Yet that is a challenge when the vast majority of stocks tend to underperform over time. Today we’ll look at some numbers from a recent study which I think you’ll find interesting.
I suspect you’ll be surprised to learn what a large percentage of stocks consistently underperform their benchmarks versus the tiny percentage which create all the wealth generated by equities. As current-day investors, we’ve enjoyed the longest bull market in history since the Great Recession lows in 2009, but just keep in mind that only a relative handful of stocks have generated all this wealth.