TIP667: Why Most Stocks Will Lose You Money w/ Professor Hendrik Bessembinder

We Study Billionaires - The Investor’s Podcast Network

Stig Brodersen

Education, Investing, Business

4.6 • 3.6K Ratings

🗓️ 11 October 2024

⏱️ 56 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

On today’s episode, Clay is joined by Professor Hendrik Bessembinder to discuss his renowned research on the performance of individual stocks. Professor Bessembinder is a finance professor at Arizona State University, and his research titled, ‘Do Stocks Outperform Treasury Bills?’ has been referenced many times on the show. As a frequent speaker at conferences, financial markets, and universities around the world, Professor Bessembinder has more than 25 years of successful consulting experience, providing strategic advice and analysis for major firms, financial markets, and government agencies. IN THIS EPISODE YOU’LL LEARN: 01:58 - Why most stocks lose money in the long run. 10:26 - What level of asymmetry exists in the stock market. 12:47 - Why stocks continuously outperform treasury bills over long time periods. 15:02 - What the average drawdown for a high-performing stock is. 20:57 - The common characteristics of the biggest stock market winners. 34:28 - What it takes to be a stock picker in today’s market. 45:17 - What the best-performing stocks are since 1925. 51:48 - Whether there is skewness in international stocks to the same degree as US stocks. And so much more! Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences. BOOKS AND RESOURCES Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, Kyle, and the other community members. Hendrik’s most well-known paper, Do Stocks Outperform Treasury Bills? Hendrik’s research. Related Episode: Listen to TIP654: Investing Across the Lifecycle w/ Aswath Damodaran, or watch the video. Related Episode: Listen to TIP543: 100 Baggers: Stocks that Return 100-1 w/ Chris Mayer, or watch the video. Follow Clay on Twitter. Check out all the books mentioned and discussed in our podcast episodes here. Enjoy ad-free episodes when you subscribe to our Premium Feed. NEW TO THE SHOW? Follow our official social media accounts: X (Twitter) | LinkedIn | Instagram | Facebook | TikTok. Check out our We Study Billionaires Starter Packs. Browse through all our episodes (complete with transcripts) here. Try our tool for picking stock winners and managing our portfolios: TIP Finance Tool. Enjoy exclusive perks from our favorite Apps and Services. Stay up-to-date on financial markets and investing strategies through our daily newsletter, We Study Markets. Learn how to better start, manage, and grow your business with the best business podcasts. SPONSORS Support our free podcast by supporting our sponsors: River Toyota Daloopa Fundrise TastyTrade The Bitcoin Way Public Facet Onramp Fidelity SimpleMining Sound Advisory Vanta Shopify HELP US OUT! Help us reach new listeners by leaving us a rating and review on Spotify! It takes less than 30 seconds, and really helps our show grow, which allows us to bring on even better guests for you all! Thank you – we really appreciate it! Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Learn more about your ad choices. Visit megaphone.fm/adchoices Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm

Transcript

Click on a timestamp to play from that location

0:00.0	You're listening to TIP.
0:03.0	On today's episode, I'm joined by Professor Hendrik Bessambinder.
0:07.0	Hendrik is a finance professor at Arizona State University,
0:10.0	and his well-known research titled,
0:12.0	Do Stocks Outperformed Treasury Bills has been
0:14.4	referenced many times on the show. He's also a frequent speaker at conferences in
0:18.7	universities around the world. Hendrix research on the stock market found that since
0:23.2	1926 just 4% of US listed companies generated all of the net returns to
0:29.8	shareholders. Statistics like this can certainly humble investors trying to pick the next big winner in the market,
0:36.0	but it also shows just how powerful stock picking can be if you're able to find even one of these top performers.
0:43.0	During this episode, Hendrik and I discuss why most stocks lose money in the long run,
0:47.8	the level of asymmetry that exists in the stock market,
0:51.0	why stocks continuously outperformed Treasury bills over a long time. the most common
0:59.8	common characteristics of the biggest stock, what's the average drawdown for a high-performing
1:01.8	stock, the most common characteristics of the biggest stock market winners, what it takes to be a stock picker in today's market,
1:06.0	how skewness differs for international stocks relative to U.S. stocks, and so much more.
1:11.3	With that, I bring you today's discussion with Professor Hendrik Besson Binder.
1:18.6	Celebrating 10 years and more than 150 million downloads.
1:23.0	You are listening to the Investors Podcast Network.
1:25.7	Since 2014, we studied the financial markets
1:28.9	and read the books that influence self-made billionaires the most.
1:32.4	We keep you informed and prepared billionaires the most.
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from Stig Brodersen, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of Stig Brodersen and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.