As many of you know, we focus on "buying the Best, and avoid the rest" as we have learned from our good friend, Keith Fitz-Gerald. We get asked from time to time, why is this so important?!?
Well, now we are aware of the Bessembinder findings in a study from Arizona State University that details market gains from 1926-2019. You may find it interesting to know that of all the US and global stock universe of ~26,000 just 811 stocks have produced 100% of the stock market appreciation. Those 811 stocks (just 1.3% of all stocks) produced $44.7 Trillion of wealth while they other 28,189 were just break-even. The study goes on to show that just 4% of all stocks since 1926 produced nearly all the market gains.
We also find ourselves reminding anyone who will listen, that Warren Buffett's success over the years was concentrated in just five companies accounting for over 84% of his portfolio.
So again - just "buy the BEST and avoid the rest" isn't just a nifty catch phrase, it is truly a remarkable guiding principle!
Need more?!? Just give us a ring 262-456-3535 or visit our website www.spectrum-wa.com to schedule your own consultation today.