All equity categories, correctly calculated, create near-identical lifelong returns. They just get there via wildly differing paths.
Sentiment: POSITIVE
Having different types of stocks in your portfolio can enhance returns.
There are two main drivers of asset class returns - inflation and growth.
When you look at dividend returns on equities versus bond yields, to me it's a pretty easy decision to be heavily in equities.
Over rolling long periods, U.S. and non-U.S. stocks tend to equalize.
Owning equities is an essential part of anyone's portfolio. You just can't ignore it over time. It's going to add the real pop to anyone's overall performance.
Generally speaking, the stronger the connection between the financing and the ultimate beneficiary, the better the result.
Personal brand equity erodes much faster than corporate brand equity.
Companies typically borrow money at less than their return on equity and therefore compound their return at the expense of lenders.
The financial capital is being concentrated by corporations, institutional investors, and even our pension funds, and being reinvested in companies that repeat this process because it provides the highest return on that financial capital.
The law of diminishing returns is something I really believe in.