Investors and traders love big winners. That 10 bagger that happens in a matter of months or maybe a few years. But by consistently hunting for those big winners we're taking larger risks.
We're better off aiming for the modest winners.
Beating your benchmark by 2% a year sees you with almost 50% more after twenty years.
A recent Planet Money Podcast, Investing in mediocrity, talks about a fund manager who only ever aimed to be in the top third of all funds. After a decade of succeeding at that, they were the top fund over ten years.
1-year FAANG returns
° Alphabet pic.twitter.com/VybsCoWDfh
— Simon Brown (@SimonPB) May 9, 2022
"Stagflation is most commonly referred to as the simultaneous experience of three separate negative economic phenomena: rising inflation, rising unemployment, and the declining demand for goods and services."
The best defence is generally commodities.