Broader equity market returns serve as a poor proxy for an average stock’s return as well as that of a buy-and-hold strategy’s expected outcomes. A much larger proportion of all stocks contribute negatively to overall market’s lifetime returns.
Endeavors in the financial markets do not fall firmly on, but move fluidly between, extremes on the chance and design spectrum. At times, investment outcomes are a product of chance and design engaging in a competition. And at other times, they are a product of the two working together.
