Or old. My previous reference and link to Amazon’s historic stock run up was a disservice to all of the esteemed readers of the humble blog. Same with my occasional references to Apple. Please strike all my references to individual stocks from the record.
Jeff Sommer restores order with “How Stocks Can Make You Rich. But They Probably Won’t“.
Heart of the matter:
How can those two sets of facts — the underperformance of the typical stock and the outperformance of the overall stock market — both be correct?
It is because a relative handful of stocks tend to outperform all others by tremendous amounts.
“. . . most people picking stocks are unlikely to do well for very long.”
In related news, during the evening commute I enjoy listening to Seattle radio’s “Ron and Don”. They care about their community, they’re funny, and they have a beautiful rapport. However, their good work is seriously undermined by their pimping of an on-line trading school. They’re smart enough to know that 99% of day traders get their asses handed to them, despite that, they promote the shit out it.
I wrote them and asked why. No reply. Yet.