Wednesday, 16 July 2025

Stock market CAGR performance: U.S. beats them all, over all time periods

"CAGR" = Compound Annual Growth Rate
We've been in all markets, since 2007 when we sold our business and had money to put into stocks. Into the U.S., China, Hong Kong, Europe and Australia markets. All those above. 

Over time, we've concentrated in the U.S. market. 

Which has performed markedly better than all others in the world. In particular much better than our one here in Hong Kong and the main Chinese one. Not to mention that in China, both individual stocks and the overall market are much less transparent than in the U.S. 

The U.S. market and its stocks are far and away the most transparent in the world. I discovered this during my time as a Day Trader in 1999-2000.

Above, FWIW.

ADDENDUM: My wife reminded me that I'd once early on made a "crazy" suggestion to put all our money in Apple stock. Well, it may have been crazy. Putting all your money in one basket is not normally recommended. But... if we had put all our money into Apple in 2008, we would today have $US 400 million in our account. Quite a lot more, rather, than what we in fact have.... 

Not so crazy. 

It was the famous Warren Buffet who one said: "I do like to put all my eggs in the one basket. And then to watch the basket very carefully". That's the Sage of Omaha. The most successful investor ever. The idea of "diversity" is really a lazy one. What everyone says to do and so we do it.