Looking at this year's S&P 500 winners reminds me why I tell people: stop trying to predict the next big thing.
Every year, the top performers list looks completely different. Last year's heroes become this year's zeros. This year's rockets were last year's duds. The pattern is randomness, not predictability.
You know what actually works? Owning all 500. Boring, I know. But you capture every winner without having to guess which one it'll be. The math is simple: a few massive winners carry the index. Miss those, and you're toast.
Most people do the opposite. They chase last year's list, buy high, panic when it reverses, sell low, repeat. It's exhausting and expensive.
The real edge isn't picking stocks. It's staying invested while everyone else is jumping in and out, convinced they've cracked the code. They haven't. Neither have you. Neither have I.
Just own the market and let compounding do its thing.
Every year, the top performers list looks completely different. Last year's heroes become this year's zeros. This year's rockets were last year's duds. The pattern is randomness, not predictability.
You know what actually works? Owning all 500. Boring, I know. But you capture every winner without having to guess which one it'll be. The math is simple: a few massive winners carry the index. Miss those, and you're toast.
Most people do the opposite. They chase last year's list, buy high, panic when it reverses, sell low, repeat. It's exhausting and expensive.
The real edge isn't picking stocks. It's staying invested while everyone else is jumping in and out, convinced they've cracked the code. They haven't. Neither have you. Neither have I.
Just own the market and let compounding do its thing.
