The specialized ETF data showing minus 3.1% alpha per year is exactly why sticking with VOO makes sense for most investors. Your breakdown of how only 21 out of 1000 high growth companies maintain 10%+ growth for five years shows the statistical improbability of picking winners. The chart demonstrating lower growth companies outperforming high growth ones contradicts eveything the financial media pushes which is why most retail investors underperform. This is the clearest explanation Ive seen for why boring broad market exposure beats chasing narratives whether its AI today or blockchain yesterday.
The specialized ETF data showing minus 3.1% alpha per year is exactly why sticking with VOO makes sense for most investors. Your breakdown of how only 21 out of 1000 high growth companies maintain 10%+ growth for five years shows the statistical improbability of picking winners. The chart demonstrating lower growth companies outperforming high growth ones contradicts eveything the financial media pushes which is why most retail investors underperform. This is the clearest explanation Ive seen for why boring broad market exposure beats chasing narratives whether its AI today or blockchain yesterday.
Splendid article.