Better Growth Vehicle: Invesco QQQ Trust or Vanguard Information Technology Index Fund?
Picking stocks capable of outperforming the broader markets consistently is a tremendously difficult task. Scores of academic studies have proved this fact. A recent study, for example, showed that only 2.39% of stocks are responsible for literally all of the gains of the global equity markets over the past 30 years. Worse still, the same study found that one of the most common outcomes among stocks on a global basis is a 95% to 100% loss in under a decade. Ouch.
Highly similar trends have been detected by other researchers dating back to 1926, which is the beginning of the database at the Center for Research in Security Prices. This unfavorable dynamic is the core reason why super investors like Warren Buffett, George Soros, and Peter Lynch, who have dramatically outperformed the S 500 index over their careers, are revered on Wall Street and Main Street alike.
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Source Fool.com
