+- Dividend Growth Forum (http://DividendGrowthForum.com)
+-- Forum: Dividend Growth Investing (http://DividendGrowthForum.com/forumdisplay.php?fid=15)
+--- Forum: My Portfolio (http://DividendGrowthForum.com/forumdisplay.php?fid=14)
+--- Thread: DGI Portfolio Construction Considerations (/showthread.php?tid=2042)
DGI Portfolio Construction Considerations - Scooterd - 12-08-2021
Do stocks outperform Treasury bills? This was the question posed too and by Hendrik Bessembinder and the one he set out to determine. For those with interest or not familiar with the initial study - Research by Hendrik Bessembinder, professor and Francis J. and Mary B. Labriola Endowed Chair in Competitive Business at ASU’s W. P. Carey School of Business, evaluated lifetime returns to every U.S. common stock traded on the New York and American stock exchanges and the Nasdaq since 1926.
Bessembinder found that the largest returns come from very few stocks overall —
* - "JUST 86" stocks have accounted for $16 trillion in wealth creation, half of the stock market total, over the past 90 years.
* - All of the wealth creation can be attributed to the thousand top-performing stocks, while the remaining 96 percent of stocks collectively matched one-month T-bills.
****Bessembinder has since updated his data (Current Draft: November 2020)You can view the findings here for those interested***.
https://deliverypdf.ssrn.com/delivery.php?ID=676067083085099093120031072114073078034050019023060074029020111088103021030126093099032060018032059046053103104087029028122011126023030041068066029114126095022080026126003091027072082108124078026064000094099029102024076019075074024110004026&EXT=pdf&INDEX=TRUE
* Exhibit 1 Page 17: depicts the Top 50 Firms that contributed to overall wealth creation (Measured as of December 31, 2019)
* Exhibit 2: Page 18 depicts lifetime wealth creation to shareholders in aggregate, by Industry. (Measured as of December 31, 2019)
* Exhibit 4: Page 20 depicts Shareholder Wealth Creation, Measured as of initial study in 2016 and updated in 2019.
- Scoot