Timeline for Why do people claim that it's hard to outperform the S&P 500? It has only increased in value by ~1.5x in the past 5 years
Current License: CC BY-SA 4.0
29 events
| when toggle format | what | by | license | comment | |
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| Jan 10, 2023 at 21:01 | comment | added | Kevin Carlson | Also Amazon and Square are down nearly half and Netflix, a third, all while SPY is up nearly a quarter (none of the stocks mentioned have beaten the S&P over this period.) | |
| Jan 10, 2023 at 18:44 | comment | added | chepner | "Whereas companies like Google, Facebook...". META is down nearly 50% since this question was posted. The S&P500 is up over 10%. | |
| Jan 7, 2023 at 14:38 | comment | added | Pete Becker | Obligatory Will Rogers quote: "Don't gamble; take all your savings and buy some good stock and hold it till it goes up, then sell it. If it don't go up, don't buy it." | |
| Jan 7, 2023 at 13:53 | comment | added | keshlam | The fifth root of 1.50 is roughly 1.08447, meaning that the APR for those 5 years was "only" 8.447 percent. Historical market average is often quoted at "about 8%", so it's already a bit above the curve, though that might reflect nothing more than the mood of the market at the time. So your question reduces to "is it hard to reliably beat market average", and unless you always know something that the professionals don't... | |
| Jan 7, 2023 at 2:14 | answer | added | AKdemy | timeline score: 1 | |
| Sep 12, 2020 at 14:40 | comment | added | Flux | By restricting your examples of "good businesses" to those that still exist, you are exhibiting survivorship bias. To do a proper analysis, you also need to include the "good businesses" that have failed. | |
| Jul 23, 2020 at 1:48 | comment | added | Michael Tracy | I generally agree with Fattie, but I have to say there is value in individual stocks if you know where to look and are patient. Case in point - back about 6 years ago, “everyone” was saying how Windows was “dead”, implying that Microsoft was going obsolete. I observed that their earnings grew every year, etc. so I bought a good chunk at 20-something. I held it until this year but sold too soon. | |
| Jul 17, 2020 at 21:43 | history | removed from network questions | JTP - Apologise to Monica♦ | ||
| Jul 17, 2020 at 19:01 | comment | added | mustaccio | You will always find something you're looking for in the last place. You should have looked there first. | |
| Jul 17, 2020 at 18:11 | comment | added | R.. GitHub STOP HELPING ICE | 1.5x in 5 years is utterly huge, not "only". | |
| Jul 17, 2020 at 17:30 | comment | added | Seth R | It's important to understand that the share price on a stock does not reflect what the company is currently worth, but what a lot of investors think the company will be worth in the future. If a company looks like it will obviously be successful in the future, that success is already priced in today. The price won't go up or down much unless they surprise everyone with something unexpected (for better or worse). | |
| Jul 17, 2020 at 16:33 | comment | added | Criticizing Israel not allowed | @Fattie Look on the bright side - at least you'd only be down 10% of your life savings, not 90%. | |
| Jul 17, 2020 at 16:07 | history | protected | Ganesh Sittampalam♦ | ||
| Jul 17, 2020 at 15:22 | answer | added | alephzero | timeline score: 4 | |
| Jul 17, 2020 at 14:36 | answer | added | Nicholas | timeline score: 8 | |
| Jul 17, 2020 at 12:19 | answer | added | Ben | timeline score: 4 | |
| Jul 17, 2020 at 5:12 | answer | added | Benjamin Wilson | timeline score: 10 | |
| Jul 17, 2020 at 4:19 | answer | added | Phil Frost | timeline score: 12 | |
| Jul 16, 2020 at 21:43 | answer | added | Phil Frost | timeline score: 20 | |
| Jul 16, 2020 at 21:02 | comment | added | Fattie | @okmani, here's an amazing example for you. The ultimate example of what you say is Netflix. But. If you'd invested your life savings in Netflix yesterday afternoon ......... you would now be down ten percent. | |
| Jul 16, 2020 at 21:00 | history | tweeted | twitter.com/StackFinance/status/1283869030256967680 | ||
| Jul 16, 2020 at 20:48 | comment | added | Polygnome | "To me it seems that if you just pick a handful of good businesses to invest in, you'll be able to beat the S&P 500". Well, if you manage to find those good businesses. If they are obviously that good, the stock price will quickly adjust and this goodness will be priced in, since everyone will see it. And if they aren't obvious, then how do you think you can find those stocks? Hindsight is 20:20. | |
| Jul 16, 2020 at 19:06 | answer | added | Jared Smith | timeline score: 17 | |
| Jul 16, 2020 at 17:53 | history | became hot network question | |||
| Jul 16, 2020 at 13:02 | answer | added | Sophie Swett | timeline score: 47 | |
| Jul 16, 2020 at 12:11 | answer | added | Philipp | timeline score: 48 | |
| Jul 16, 2020 at 11:32 | answer | added | Fattie | timeline score: 124 | |
| Jul 16, 2020 at 3:16 | comment | added | Flux | "... the past 5 years". Only over the past 5 years? What about the past 10 years? What about the next 5 years? What about the next 10 years? How do you know that the stocks you mention won't underperform the S&P 500 in the next decade? | |
| Jul 16, 2020 at 3:07 | history | asked | Eric Gumba | CC BY-SA 4.0 |