Excellent video illustrating a very powerful point. Would the sum have been closer if 2018 year end constituent weightings been applied to the 2019 returns. Applying year end 2019 weightings to 2019 returns "double-weights" 2019 performance because the performance is built into the year end 2019 constituent weightings (stocks that did well end the year with a greater weighting, and those that didn't do well end with a smaller weighting than they did at the beginning of the year). Just a thought.
Here is the skew for common stocK between 1926 and 2016.there was 36 trillion of wealth creation. 25000 companies or 96% of all stocks produced little wealth creation. 1026 stocks or 4% of stocks produced 35 trillion and of those companies 90 or less than 1/3 of 1% was responsible for almost 20 trillion.
Suggestions you might want to add "Why it's hard to beat the S&P500" to the title because I think it would pick up better in the search.
That's so good man, thanks a lot
Very informative. Glad ive found this channel.
Excellent video illustrating a very powerful point. Would the sum have been closer if 2018 year end constituent weightings been applied to the 2019 returns. Applying year end 2019 weightings to 2019 returns "double-weights" 2019 performance because the performance is built into the year end 2019 constituent weightings (stocks that did well end the year with a greater weighting, and those that didn't do well end with a smaller weighting than they did at the beginning of the year). Just a thought.
Wow, it probably took you a while. Thank you for the video!
Here is the skew for common stocK between 1926 and 2016.there was 36 trillion of wealth creation. 25000 companies or 96% of all stocks produced little wealth creation. 1026 stocks or 4% of stocks produced 35 trillion and of those companies 90 or less than 1/3 of 1% was responsible for almost 20 trillion.
Great video!
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