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FYI: The majority of stocks have lifetime returns that are less than that of one-month treasuries. The best performing 4% of stocks were responsible for all of the wealth created in the stock market from 1926 through 2018. Regards, Ted https://theirrelevantinvestor.com/2019/11/01/so-many-losers/
This is why active management is also such a big risk and it isn’t talked about enough. If you miss those handful of stocks driving the market you really will underperform. I wonder sometimes if this isn’t as significant as the whole fee argument against active funds. The author makes the case for excluding the losers as active management, but that’s easier said than done. His active description to get rid of losers seems like a form of growth stock investing, which is working fine for now, but I suspect only for now.
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