Where does the money go?

Discussion in 'Investing' started by TomB16, Jun 7, 2022.

  1. TomB16

    TomB16 Well-Known Member

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    Consider this. A broad market index is an average. The index averages all of it's constituents.

    As of today, the S&P 500 index has gained 202% over 10 years. It started at 1362.33 and is now at
    4114.26 so it has tripled in value.

    How many investors have tripled their portfolio in the last 10 years? Damn few have done it.

    And yet, this is an average. Where are the above average people? Not everyone can be below average, by definition.


    S&P 500.png
     
  2. WXYZ

    WXYZ Well-Known Member

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    Why does virtually no one achieve the average returns?

    I will answer with a classic question:

    "Where Are the Customers' Yachts?"

    The other answer to this age old question is:

    "look in the mirror"
     
  3. WXYZ

    WXYZ Well-Known Member

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    There are a few people that equal or beat the averages. BUT......they are totally ignored by the media and are derided as IDIOTS by the majority of investors/traders/speculators.
     
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  4. Spud

    Spud Active Member

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    You take the fun out of everything. :lauging: Some of us still try to beat the train.
     
  5. ddebrazza

    ddebrazza Active Member

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    I think its because no one buys and holds for 3 years. Finding a good entry point, on the right stock, and NOT cashing out sometime prior to tripling, ya know?
     
  6. roadtonowhere08

    roadtonowhere08 Well-Known Member

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    To answer the question: It goes to the big guns who manipulate the market and to the government in the form of short term capital gains tax.

    As to why "most" do not meet or beat the averages... I suspect those who buy and hold for a long time are busy living their best life and we are not aware of them. The modest winners instead of the blowhards who do not beat the averages, if you will.
     

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