
Most stockmarket returns come from a tiny fraction of shares - known
https://www.economist.com/finance-and-economics/2018/06/23/most-stockmarket-returns-come-from-a-tiny-fraction-of-shares
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stolk
Does this statistic consider cap gains only?

Or did the author take dividend into account?

I'm not surprised that cap gains are concentrated in a few stocks, but overal
wealth creation? I have my doubts.

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mancerayder
Paywall

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alimw
View Source

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candiodari
TLDR: very few stocks have outsized returns over a relatively short period of
time (usually early in the life of the companies). Most stocks (>50%) in the
S&P500 (which suggests the DOW would be worse) are just outright bad
investments.

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gmiller123456
Honestly I found it difficult to discern any coherent point from the article
at all. At the end they just say "diversify".

But they also say that a lot of stocks are poor investments, so taking
"diversify" to the extreme will dilute/eliminate any profits you make. So, in
order to provide useful information, they really need to be a lot more
specific than just "diversify".

