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> In fact, high performing equities if anything tend to fall and regress to the mean. Ok, honest question. Have you ever looked at the S&P, say over 50 years?
by lkdfjlkdfjlg 2y ago
> In fact, high performing equities if anything tend to fall and regress to the mean.
Ok, honest question. Have you ever looked at the S&P, say over 50 years? Just simple yes or no.
- refurb 2y agoYes, have you? It’s pretty clear high performing company don’t maintain it.
- lkdfjlkdfjlg 2y agoI'm talking about the index. No, you haven't. Because if you did, you woulnd't be looking at an exponential and saying "but but but it reverts!!!!"
- refurb 2y agoPlease give me an example of a company that has consistently produced annual return higher than the SP500 average over 50+ years (hell, 20+ years). The answer is there are none. Company tend to have stretches of very high returns, followed by flat or decreasing periods. So what most people do - buy a stock that has already gone up a lot, are basically buying high and selling low.