Finding the right set of stocks and investing at the right time to get the maximum growth curve is always a challenge. This data below shows how stocks have done and therein lies a secret that we will discuss
Blackstar Funds reviewed the historical distribution of 8,000 stocks trading on the NYSE, AMEX and NASDAQ over 23 years (1983–2006). The results
- Only 25% of all stocks were responsible for all of the gains
- The takeaways are fascinating:
- 2 out of every 5 stocks are money-losing investments.
- 1 out of every 5 stocks is a terrible investment (losing 75% or more)
- Only 6% of stocks significantly outperformed the index (500% or more)
What this shows, if one could pick the best 10 mid cap stocks of the era and hold it thru a period of 10 years it would give better returns that any other form of investing. But of course you need to stay put through a few dozen sell offs and noise and volatility.
The Sequity analyst team has been helping clients find those midcaps and help them stay the course to achieve market thumping returns over a 10 year time frame .