4 ms·
> No stock will outperform the market over the long term. So all stocks are below average...Sort of a reverse Lake Wobegon effect?
by jhamburger 16y ago
> No stock will outperform the market over the long term.
So all stocks are below average...Sort of a reverse Lake Wobegon effect?
- grandalf 16y agoI suppose it's possible for a company to exist indefinitely, but how many companies that existed 1000 years ago exist today?
- mnordhoff 16y agoEleven! https://secure.wikimedia.org/wikipedia/en/wiki/List_of_oldest_companies https://secure.wikimedia.org/wikipedia/en/wiki/List_of_oldes...
- jhamburger 16y ago> I suppose it's possible for a company to exist indefinitely, but how many companies that existed 1000 years ago exist today? How many markets that existed 1000 years ago exist today? The point I'm making is that markets are composed of individual stocks, they can't be inherently superior in terms of ROE to the stocks that the indices track.