At Berkshire Hathaway’s annual meeting recently, chief Warren Buffett pointed out that none of the top 20 companies by market cap in 1989 were in the top 20 league today. Even in one of the hottest sectors in the 20th century – automobiles – there were over 2,000 defunct companies. In fact, after the 2008 meltdown, there were just three left. Two of them had been rescued from bankruptcy by the US government.
Data and research suggests that on the average human beings are poor at stock market investing. We are all susceptible to the fallacies of bias and emotion.
