Hendrik Bessembinder - Do Stocks Outperform T-Bills? | #532

2024-05-03

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Today’s guest is Hendrik Bessembinder, a professor at Arizona State University.In today’s episode, Meb and Hank discuss Hank's research on long-term stock returns and wealth generation. They explore the concept of power laws in the stock market, where a small percentage of stocks generate significant returns, while the majority underperform. They also discuss the implications of Hank's findings for investors, including the importance of diversification and the challenges of holding onto big winners. (1:06) - Welcome to our guest, Hendrik Bessembinder (1:27) - Do Stocks Outperform Treasury Bills? (6:16) - Power laws drive stock market ret...

Today’s guest is Hendrik Bessembinder, a professor at Arizona State University.

In today’s episode, Meb and Hank discuss Hank's research on long-term stock returns and wealth generation. They explore the concept of power laws in the stock market, where a small percentage of stocks generate significant returns, while the majority underperform. They also discuss the implications of Hank's findings for investors, including the importance of diversification and the challenges of holding onto big winners.

(1:06) - Welcome to our guest, Hendrik Bessembinder
(1:27) - Do Stocks Outperform Treasury Bills?
(6:16) - Power laws drive stock market returns
(13:52) - The importance of holding on to winners in your portfolio
(15:22) - Shared traits among the best stocks
(23:10) - Takeaways from his global studies
(28:21) - Mutual Fund Performance and Long Horizons
(31:34) - Other topics Hank is interested in researching
(37:52) - Hendrik’s most memorable investment
Learn more about Hendrik: SSRN; Lessons from Bessembinder

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Past guests include Ed Thorp, Richard Thaler, Jeremy Grantham, Joel Greenblatt, Campbell Harvey, Ivy Zelman, Kathryn Kaminski, Jason Calacanis, Whitney Baker, Aswath Damodaran, Howard Marks, Tom Barton, and many more.