Miss a Stock...

Talking Real Money - Investing Talk

Don McDonald

Education, Business, Investing, How To

4.5 • 811 Ratings

🗓️ 13 April 2026

⏱️ 25 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

A century-long study by Hendrik Bessembinder reveals a stunning truth about investing: while the U.S. stock market produced enormous overall wealth, the vast majority of individual stocks were losers, with just 46 companies responsible for half of all gains. Don and Tom unpack what this means for investors—namely, that stock picking is essentially a losing game driven more by luck than skill, and that broad diversification through index investing is the only reliable way to capture market ret...

Transcript

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0:00.0	Your guides to a really great financial future.
0:09.0	Tom and Don are talking real money.
0:13.0	Everyone's heard the adage.
0:14.4	If you miss a day, you miss a lot.
0:16.8	It was used on radio all the time to try to get you to listen to talk radio or news radio.
0:22.3	And we've used it when it comes to the stock market.
0:25.1	We've said if you miss a day or two or three, the best ones, you're going to miss a lot.
0:28.0	But it's not just if you miss a day, you miss a lot.
0:31.5	If you miss the right stock, you miss almost all of the return of the stock market.
0:36.7	Or so says our friend,
0:39.2	Henrik Bessonbinder of Arizona State University in Tempe, Arizona. Hi, everybody. I'm Don
0:46.2	McDonald, along with Tomcock, on this another exciting edition of the Talking Real Money
0:54.1	podcast.
0:55.1	Welcome to the program.
0:55.9	We're glad you're there.
0:57.3	And we look forward to enlightening you and, of course, answering your questions at
1:02.4	Talking Real Money.com.
1:03.7	So without further ado, do-do-do-do-do.
1:08.0	Let's talk about Herr Bessonbinder. I know you're going to do the accent.
1:13.1	You didn't do the accent. No, no. It's, this is, of all the programs we do, this might be among the most important. True.
1:23.2	You mean, number one out of almost 1800 podcasts? It's profound. It's so profound. I even went home and told my wife and I don't tell one out of almost 1,800 podcasts? It's profound.
1:28.1	It's so profound.
	...

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