Tuesday, June 27, 2017

T-Bills and Stocks

Rupert Hargreaves writes an interesting article on Value Walk about how T-Bills over their lifetime can beat stocks. Overall the stock market beats T-Bills.

However, most of the return on the market is created by some 4% of the stocks. So if you do not pick the right stocks you may not be able to beat investing in T-Bills. In the US Hendrik Bessembinder says that 42% of the stocks outperformed T-Bills, but the rest produced negative returns.

Note also that companies disappear off of exchanges for other reasons that Bankruptcy. Companies change their names and symbols, they are bought out or taken private. This is not necessarily bad for investors. You get seemingly new companies with companies split up or spin off sections of their business.

I have done well overtime. I have been investing from the late 1970's. However, I tended to pick big companies that pay dividends. However, not all my investments have worked out and I have lost money on some. Overall I have made good money, especially from dividends.

On my other blog I wrote yesterday about Saputo Inc. (TSX-SAP, OTC-SAPIF)... learn more. Tomorrow, I will write about AGT Food and Ingredients Inc. (TSX-AGT, OTC-AGXXF)... learn more on Wednesday, June 28, 2017 around 5 pm.

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.

See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.

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