The Best Performing Stocks of The Last 100 Years

Patrick Boyle On Finance

In today's podcast we discuss the top performing stocks of the last 100 years. Which countries have had the best performing stock markets, and which factors drive outperformance.
Every year, in association with Credit Suisse, Elroy Dimson, Paul Marsh and Mike Staunton of London Business School, release The Credit Suisse Global Investment Returns Yearbook which analyses global market returns since 1900. The 2020 edition gives us the insights gleaned from examining 120 years of global markets data. The team look at stocks, bonds, bills, inflation and currency for 23 national markets and for the world as a whole. Here is a link to their book on Amazon: https://amzn.to/3avJH9A

After analyzing the lifetime returns of 25,967 common stocks, Hendrik Bessembinder of Arizona State University determined that just 1,092 of those stocks -- or about 4% of the total -- generated all of the $34.8 trillion in wealth created for shareholders by the stock market between July 1926 and December 2016. Even more striking, a mere 50 stocks accounted for well over one-third (39.3%) of that amount. Over a 90-year span, 96% of all stocks collectively performed no better than risk-free 1-month Treasury bills.
The Credit Suisse Global Investment Returns Yearbook: https://www.credit-suisse.com/about-us/en/reports-research/studies-publications.html
Hendrik Bessembinder Paper https://tinyurl.com/fw1mri8l

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