Thank you for posting this paper. It’s been a while since I’ve seen it.The best-performing four percent of listed companies explain the net gain for the entire U.S. stock market since 1926.
In case it’s not obvious, the 4% is a constantly rotating selection of companies. As the author of the paper notes, he identified some 25,000 companies that have listed shares since 1926. The 4% that have created all the wealth comprise over 1,000 companies. Since it’s difficult to identify these companies in advance, we Bogleheads buy the entire US market (or a meaningful representation thereof).
Statistics: Posted by Gaston — Tue Jun 11, 2024 6:02 pm