Business and Finance Business and Finance
Sun, January 26, 2025
Sat, January 25, 2025

How Billionaires Have Beaten the Market Over the Last Decade (and What You Can Learn From Them)


Published on 2025-01-25 16:21:06 - AOL
  Print publication without navigation

  • Anyone who hopes to build wealth should start by looking at those who have already done it -- and learning everything they can from them. Read More: I'm a Self-Made Millionaire: 5 Stocks

The article from AOL Finance discusses a study by Hendrik Bessembinder, a finance professor at Arizona State University, which analyzed the performance of stocks over the last century. The study found that a small number of stocks, specifically those of companies like ExxonMobil, General Electric, Microsoft, IBM, and Apple, have significantly outperformed the market, contributing to nearly all the wealth creation in the U.S. stock market. These stocks, often linked to billionaire investors, have driven market returns, with the top 86 stocks accounting for half of the market's wealth creation. The article highlights that while these stocks have been exceptional, the majority of stocks underperform, suggesting that picking individual stocks can be risky and that diversification might be a safer strategy for investors.

Read the Full AOL Article at:
[ https://www.aol.com/finance/billionaires-beaten-market-over-last-130147936.html ]
Contributing Sources