80 Percent Of Stocks Have A Lifetime Return Of Zero

by Eric Crittenden, longboardfunds.com reposted with permission Longboard’s original research proves that over the long term, a small minority of stocks drive returns for the overall market. If you’ve heard of the Pareto Principle before, this might not surprise you. What does this mean for investors? It may be more efficient to navigate this reality by getting defensive, and strategically avoiding the majority in this equation: the underperforming investments. Be aware of disproportionate rewards Here’s a closer look at our research on this competition gap in action in the U.S. stock market. We analyzed 14,455 active stocks between 1989 and 2015, identifying…