Many Happy Returns 10 Investing Facts That Can't be True (But Are)
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Dec 24, 2025 Discover mind-boggling truths about investing, like how gold has outperformed US stocks since 2000. Most individual stocks actually return less than cash over time, and surprising studies reveal no link between GDP growth and market returns. Uncover the unexpected reality that investing during all-time highs can yield strong gains due to momentum. Curious about unique assets? Learn how unopened Lego sets can outperform traditional investments. Plus, find out how Christmas trees shed light on the futures market!
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Most Stocks Underperform Cash Over Their Lifetimes
- Most individual stocks underperform cash over their lifetime and many end in total wipeout.
- A tiny minority of winners (about top 4%) create the bulk of market wealth.
Start Date Can Trump Active Outperformance
- When you start investing can outweigh skill: two different 20-year periods with ±5% alpha produced dramatically different outcomes.
- Market timing and entry period can dominate active alpha over long windows.
Japan Stayed Underwater For Decades
- Japan's stock market remained below prior highs for 34 years after its 1980s bubble burst.
- Concentrating domestically without diversification can create very long drawdowns.