A while back we discussed how the S&P 500 Index Fund outperforms the
majority of general equity funds. I saw some interesting statistics
on another thread indicating that the Index also outperforms the
majority of individual stocks, as well. I don't know the source of
the data.
"For the period ending November 30, 1998, the investment returns of
the Index for 1-, 3- and 5-year periods are 23.7%, 26.7% and 23.0%,
respectively. It is interesting to periodically look at the
performance of the stock "universe" as compared to the Index.
For 1 year:
Greater than 23.7% 1,213 stocks 17.4%
Greater than Zero but
Less than 23.7% 1,263 18.1
Less than Zero 4,488 64.5
For 3 years:
Greater than 26.7% 1,213 stocks 21.1%
Greater than Zero but
Less than 26.7% 2,246 39.0
Less than Zero 2,293 39.9
For 5 years:
Greater than 23.0% 837 stocks 19.0%
Greater than Zero but
Less than 23.0% 2,007 45.5
Less than Zero 1,565 35.5
It looks quite tough to beat the Index.
Best wishes,
I2 |
