Wealth Creation in the U.S. Public Stock Markets 1926 to 2019
14 Pages Posted: 25 Feb 2020 Last revised: 30 Mar 2020
Date Written: February 13, 2020
This note provides an update, using data to December 2019, on the wealth creation outcomes reported by Bessembinder (2018). Net wealth creation in the US public stock markets since 1926 increased from $34.82 trillion as of December 2016 to $47.38 trillion as of December 2019. Five firms (Apple, Microsoft, Amazon, Alphabet and Facebook) explained 22.1% of this $12.56 trillion increase. Comparing across all thirty one three-year periods since 1926, the degree to which wealth creation in the stock market is concentrated in a few firms has increased in recent decades, and was particularly strong during the most recent period.
Keywords: shareholder wealth, long horizon returns, stock market performance
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