Professor Hendrik Bessembinder, a finance expert from Arizona State University, dives into why most stocks fail to deliver returns over the long haul. He highlights that only a select few stocks drive market gains while the majority lose money. Bessembinder discusses the asymmetry in stock market returns and why equities outshine treasury bills over time. He shares insights on the characteristics of the biggest market winners and the challenges stock pickers face today, revealing intriguing trends in both U.S. and international stocks.

Join Hendrik Bessembinder, a finance professor at Arizona State University, as he uncovers why most stocks underperform Treasury bills. He reveals that a small number of stocks drive the majority of market returns, challenging traditional investing strategies. Listen in as he discusses the role of skewness, the complexities of mutual fund performance, and common investing mistakes. Learn how chasing past returns can lead to costly errors, and discover effective strategies for building a robust portfolio that endures market fluctuations.

Join Robin Wigglesworth, a contributor from FT Alphaville, and Hendrik Bessembinder, a renowned professor known for his extensive stock research, as they delve into the staggering results of Bessembinder’s analysis of top-performing stocks over the last century. Discover how one stock achieved an unbelievable 265,528,900% return. They also explore the power of compounding, the challenges facing traditional versus tech industries, the debate between passive and active investing, and the quirks of leveraged ETFs in today’s market.

Hendrik Bessembinder, a professor at Arizona State University, discusses his research on stock market returns with Meb. They talk about power laws driving returns, the importance of holding onto winners, shared traits among top stocks, and challenges of mutual fund performance. Hank's findings emphasize diversification and the difficulty of retaining big winners in a portfolio.

Hendrik Bessembinder, a market design expert and professor at Arizona State University, dives into the intriguing question of whether stocks truly outperform Treasury bills. He discusses his research revealing that 57% of stocks have historically underperformed, emphasizing the role of dividends and market capitalization. The conversation also tackles the active versus passive investment debate, showcasing the complexities of stock return distributions and the need for diverse strategies. Bessembinder’s insights challenge conventional stock picking and highlight the importance of adapting to market changes.