Warren Buffett has made a fortune from the investment in Wells Fargo! Almost a return on investment of 100x from the initial investment!
I point this out because a truly valuable lesson to learn from those who year after year beats S&P 500 Index. It is that you are buying shares in individual stocks and not into the stock market itself.
What company we decide to buy shares in, it is a make or break scenario and even when we plan to hold for years. A 100x return on an investment is rare. But somebody is going to be at the right place at the right time and figure out that they possibly are dealing with a huge winner over the long-run. You can better your odds by having an open mind and your eyes wide open. I’ve read that Warren Buffett reads around 500 pages per hour and is constantly on lookout to find great stocks for Berkshire Hathaway. And the man is 89 years old!
Also have in mind that certain stocks doubles and triples in a year even during bear markets and through recessions. But such stocks are most likely penny stocks.