10 Sep 2020, Thursday
Prioritized Daily Task
Called and went to Wells Fargo Advisors in St. George. I completed the application for mutual funds and options trading and the secretary faxed the forms to their main office.
Costco - filled the Outback SUV with gas and bought a few groceries.
Studied Eric Fry's news letter investing, one note I copied: In past Digests, we've referenced work done by the investment shop, Longboard.
In short, studying a 23-year period, they found that the worst performing 6,000 stocks -- which represented 75% of the stock-universe in the study -- collectively had a total return of ... 0%.Yes, that's a zero.
The Longboard study also found that 18.5% of stocks lost at least 75% of their value.
The best performing 2,000 stocks -- the remaining 25% -- accounted for all of the gains.
As you can see, being invested for decades is no guarantee of a 10x return.
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