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The benchmark S&P 500 (SNPINDEX: ^GSPC) stockmarket index has delivered a gain of 67,036% (including dividends) since it was established in 1957. But, historically, investors who purchased specific individual stocks have far outperformed the return of the S&P 500. That's equivalent to a compound annual gain of 24.5%.
The stockmarket is a proven wealth generator over the long term, even for conservative investors who buy index funds. But some individual stocks like Netflix (NASDAQ: NFLX) have delivered an absolute fortune to investors who were game enough to bet on them early. Netflix was founded in 1997. Image source: Netflix.
Well, if the stockmarket goes up, they win, the stockmarket stays the same, they win the stockmarket tanks, they win. Well, if the stockmarket goes up, they win. The stockmarket stays the same, they win the stockmarket tanks, they win. They win no matter what.
That's when our stocks really go bananas. For us to tack on 12% points of outperformance in this market has been particularly sweet, even if 2007 so often felt bittersweet. Fellow Fools, the stockmarket is a roller coaster, full of swoops and dives. Remember, stockmarket equals roller coaster.
It’s more an indication of what your CEO tweets about than the actual virtue or vice of the company’s behavior. This lack of fairness, transparency, objectivity and the ideology the enshrines the offering up of stockmarket competitiveness as a sacrificial cow of wokeness is yet another reason why ESG sucks. Impact investing.
It is our great quotes, Volume 19, the 19th, in this long-running series that dates back to 2015 for this podcast. He said, "the stockmarket was invented to move money from those who are impatient to those who are patient." I don't think and I doubt Graham thought that the stockmarket was actually invented to do that.
RITHOLTZ: So, that makes the finance sector very different than the rest of the stockmarket? And so, therefore, the usual market forces that push against high leverage in other companies that just naturally with no regulation would limit. ADMATI: We’re at the mercy of these privatecompanies.
There was a lot of trading of volatility in the stockmarket, good volatility for the most part around the election. A volatile market, whether it's going up, going down, volatility is good for trading revenue in these investment banks. Private equity is when you're buying shares in privatecompanies, essentially.
I see immense value in what I call private service that would be serving others through the private sector, often finding it more enjoyable and rewarding than traditional public service. We've delivered a new podcast every week now since July of 2015 by my math, that makes it 496 weeks without a skip or a repeat.
MORGENSON: And so it looked like it was really a pretty reasonable reaction to what had been years of undervalue in the stockmarket. So, when private equity really was ramping up in the ’80s and ’90s, it was essentially an institutional allocation. The death of equities, you remember that cover. RITHOLTZ: Sure.
And the booming stockmarket started to send real estate prices higher. So if you’re a, if you are a privatecompany, why are you asking me the taxpayer Sure. And the fascinating thing about that, I have a vivid recollection, I wanna say it’s 2015, right? To subsidize your employees.
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