WealthVest’s Post

"Most stocks are very, very bad investments. Ninety-six percent of companies that have ever been public generated returns that were worse than T bills collectively. The remaining 4% are responsible for 100% of the stock market’s wealth creation over the past 100 years." I couldn't get these numbers out of my head for a while when I spoke with Cole Wilcox on the Open Interest series on Top Traders Unplugged. It's wild: 96% vs. 4%. Continues: "The biggest one, most people in life tend to focus on picking winners and trying to find the next big thing. There’s an inordinate amount of industry research that goes around trying to figure out what’s going to work in the future. What we have found is that Charlie Munger has this quote about “always invert.” So we tend to look at stuff the other way and say, well, let’s study the failure. So one of the insights that we had when we published the research called “The Capitalism Distribution”, and then a super famous paper by Hank Bessembinder followed up on this work, kind of looked at the success/failure distribution of the stock market over time. Most stocks are very, very bad investments. Ninety-six percent of companies that have ever been public generated returns that were worse than T bills collectively. The remaining 4% are responsible for 100% of the stock market’s wealth creation over the past 100 years. This is not a bell curve distribution of success and failure. It’s a very much winner-take-all kind of system in the stock market, which means your odds of picking winners are pretty low. Your odds of owning a loser or something that’s average to below average are quite high. So where a lot of the alpha comes from in doing this is more on removing the vast majority of things that are sub-par to bad investments while still having the discipline, because you’re catching every trend, to own those winners into the future. So it’s just in our universe, in that Russell 2500, or say the Russell 2000 specifically with the small caps, I think right now, maybe 40% or more of those companies are unprofitable and don’t make money. There’s just a lot of not very good businesses out there that are public companies. Avoiding investments and just not good businesses is a way to get ahead relative to an index that just kind of owns everything. So I find that avoiding the losers is a big factor, while still having a system that assures you that since you’ve covered everything in the market, you’re going to own all those big winners. Those are two big advantages on the stock selection level. But then there’s a second component that gives us an advantage to any traditional long-only investor. As a trend following strategy, we’re running risk management."

#8 most popular topic on my podcast in our last 2 years! 🎙️ Real Estate Vs. Stocks from a Former Stockbroker’s Perspective Here’s why:  Jonny Cattani, founder of Cattani Capital Group and host of The Cash Flow Chronicles, shares his inspiring journey from stockbroker to thriving real estate investor. 🏢 👉 Discover the hidden potential of real estate investments 👉 Debunking the stock market myth – wealth beyond stocks 💰 👉 Insights on building wealth and thriving in uncertain times This is a must-listen for those looking to break free from the stock market mindset! If you’ve listened, comment below with your biggest takeaway. If not,  Listen here: bit.ly/3Zu4MLo  #RealEstateInvesting #PassiveIncome #WealthBuilding

#8 most popular topic on my podcast in our last 2 years! 🎙️ Real Estate Vs. Stocks from a Former Stockbroker’s Perspective Here’s why:  Jonny, Cattani, founder of Cattani Capital Group and host of The Cash Flow Chronicles, shares his inspiring journey from stockbroker to thriving real estate investor. 🏢 👉 Discover the hidden potential of real estate investments 👉 Debunking the stock market myth – wealth beyond stocks 💰 👉 Insights on building wealth and thriving in uncertain times This is a must-listen for those looking to break free from the stock market mindset! If you’ve listened, comment below with your biggest takeaway. If not,  Listen here: bit.ly/3Zu4MLo  #RealEstateInvesting #PassiveIncome #WealthBuilding #JonnyCattani

“𝐇𝐨𝐰 𝐜𝐨𝐦𝐞 𝐭𝐫𝐞𝐧𝐝 𝐟𝐨𝐥𝐥𝐨𝐰𝐢𝐧𝐠 𝐰𝐚𝐬𝐧’𝐭 𝐛𝐞𝐢𝐧𝐠 𝐚𝐩𝐩𝐥𝐢𝐞𝐝 𝐭𝐨 𝐬𝐭𝐨𝐜𝐤𝐬?!” This was the question that started Longboard. Moritz Seibert interviews exceptional investment managers on Top Traders Unplugged. He just spoke with our founder and CIO Cole Wilcox. Here’s what they discussed: ◆ How to reduce the role luck plays when investing ◆ Finding alpha by combining defense AND offense ◆ Why trend following on stocks is a complement to managed futures and other alternative strategies Listen here or on your favorite podcast platform: https://lnkd.in/ecvkPPcf #investing #wealthmanagement #mutualfunds

How did major stock markets perform last week? We saw mixed returns across major markets as the trajectory of interest rates continued to diverge. Listen to our 2min podcast global weekly round up here: https://lnkd.in/eeyRDipb #globaleconomy #investing #wealthmanagement

One podcast you don’t want to miss this week. Meb Faber on the compound with Joshua Brown and Michael Batnick, CFA. 𝗧𝗵𝗲𝘀𝗲 𝗮𝗿𝗲 𝗧𝗼𝗽 𝟱 𝗵𝗶𝗴𝗵𝗹𝗶𝗴𝗵𝘁𝘀 𝗶𝗳 𝘆𝗼𝘂 𝘄𝗮𝗻𝘁 𝗧𝗟𝗗𝗥: - Meb’s first major publication and most popular: A Quantitative Approach to Tactical Asset Allocation - The pros and cons of trend following for financial advisors - Market breadth is broadening out - Why look at shareholder yield? And how to think about stock buybacks - Is buying stocks at an all-time high a good idea? Funniest part is that Meb got approached by Roaring Kitty before the GameStop frenzy of 2021. He wanted to pitch the stock on Meb’s show. If you haven’t heard the story behind Roaring Kitty, Reddit and WallStreetBets then start here 👉 https://lnkd.in/gA3QJWjG You can listen to the podcast episode below: 👉 https://lnkd.in/gr9D_AUM #investing #stockmarket #wealthmanagement

Think owning stocks is all about charts and squiggly lines? Think again! 📈 Discover why investing in shares is about owning real companies making real products. Tune in to our latest podcast episode to learn more! #Investing #Stocks

Think owning stocks is all about charts and squiggly lines? Think again! 📈 Discover why investing in shares is about owning real companies making real products. Tune in to our latest podcast episode to learn more! #Investing #Stocks

How to use the Stock Trader´s Almanac - Jeff Hirsch 58 years - thats how long the Stock Trader´s Alamanac is been published. Jeff Hirsch, editor in Chief describes in this episode how traders can use this most useful book on a yearly, monthly and daily basis. Listen to the full episode now and subscribe to the podcast: https://www.rfr.bz/lmgkf5x #stocks #daytrading #Jeffhirsch #investing #stocktradersalmanac #wealth

Episode #468: Stock Market vs. Real Estate: Which Fits You Best? With Jaime Swartz (IG: @jaimeswartz) If your real estate deals are not penciling out, you might want to start thinking about alternative investments, such as the stock market. But how can you know if the stock market is right for you? This is exactly what we answer in this week’s episode of The Real Estate InvestHER Show. If you’re feeling overwhelmed by the myriad of investing options available, know that you’re not alone. Many investors feel the same, especially when they have to choose between investing in real estate and investing in the stock market. To help you make a decision, we’ve invited an expert on the podcast. Her name is Jaime Swartz and she is a professional trader, investor, and portfolio manager with over fifteen years of experience on Wall Street. In this episode, she will be discussing the importance of understanding risk tolerance before investing in the stock market, the best investment strategies for you, the difference between investing in the stock market and investing in real estate, and more. Are you ready for this? Then tune in to episode 468 now! 🎧 Listen to the full episode here: https://hubs.li/Q02rFthX0 or search "The Real Estate InvestHER Show" on YouTube to find all episodes. #realestate #stocks #stockmarket #investingtips