How You Can Get Big Gains That Wall Street Can’t

Posted by jasonzweig on Dec 15, 2019 in Articles & Advice, Blog, Columns, Featured |

Image Credit: Alex Nabaum

By Jason Zweig | Dec. 13, 2019 11:00 am ET

The best-performing stock of the past 30 years isn’t Warren Buffett’s Berkshire Hathaway Inc., Microsoft Corp. or Apple Inc. It’s little-known Jack Henry & Associates Inc., which provides technology to banks and other financial firms from its headquarters in Monett, Mo. (population 8,873).

Jack Henry’s story is common among the “superstocks“ with the highest long-run returns. Once-tiny companies, often neglected by professional investors for years, end up earning higher returns than stocks that were far bigger and better-known.

Surprisingly, small investors may have a big edge over Wall Street’s giants in capturing these gains. That’s because, to earn such superior long-term results, you have to withstand bone-cracking short-term downdrafts along the way — something most fund managers can’t do.…

To read the rest of the column:

https://www.wsj.com/articles/how-you-can-get-big-gains-that-wall-street-cant-11576252808

For further reading:

Books:

Benjamin Graham, The Intelligent Investor