Extreme Stock Market Performers, Part II: Do Technology Stocks Dominate?

Abstract

This study reports on decade-horizon outcomes for investors in U.S. common stocks since 1950. Despite the stellar performance of investments in firms such as Apple, Amazon, and Microsoft, Technology stocks as a group are more likely to appear on a list of the worst rather than best performers. Telecommunications, Healthcare/Pharmaceutical, and Energy firms are disproportionately represented among those with the best decade-horizon stock returns, though Telecommunications stocks are also more likely to appear among the investments with the worst decade-horizon stock returns.

Keywords: Long Horizon Returns, Shareholder Wealth, Technology Stocks