NUGGETS OF ALPHA
From 1926 to 2022, the majority of U.S. stocks diminished shareholder wealth
NDX beat both MSFT and AAPL YTD
S&P 500 consists of 493 stocks whose YTD average is +1.6% while the dollar debases by 10%
The top 25 stocks created 1/3rd of all wealth over the last 100 years
Top 0.00088 of U.S. stocks over history have generated 33% of the market's returns
If you examine the top 1,500 stocks since 1974, the top 5 drive 15% of the results
98% of crypto is not going to survive
The half-life of a crypto asset is about four years
Crypto is a wealth destruction mechanism if you are outside of the top names
Ignore the 99% and focus on the 1%
This story is about the Math behind being an Elite Investor!
In today's lesson, we will look at 100 years, the recent history of equities, and how you can map the learnings to crypto. From my 35-plus years of experience, I believe extreme focus brings about successful investing.
We will cover the evolution of investments in publicly-listed U.S. stocks from 1926 to 2022 that have augmented shareholder wealth by over $55.1T. However, the irony in today’s lesson is that most individual stocks (58.6%) resulted in diminished shareholder wealth.
Many hold the opinion that stock picking is an unachievable feat. What are the insights of Nobel Laureate Eugene Fama on this matter?
Eugene Fama believes that it is impossible for investors to consistently beat the market by picking individual stocks. This mindset leads to the belief that it is better to buy index funds, as most active fund managers underperform the market over the long term.
I beelive retail investors right now can be "smarter" than Wall Street professionals. Today's hard lesson is about being different in your investment mindset and allocation.
This is all about the Great Escape!
This is a slide from a video I made in January that displayed a list of assets I
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