[refurb]

Your falling for the same trap as most novice investors - past performance has no predictive value of future performance.

In fact, high performing equities if anything tend to fall and regress to the mean.

[lkdfjlkdfjlg]

> In fact, high performing equities if anything tend to fall and regress to the mean.

Ok, honest question. Have you ever looked at the S&P, say over 50 years? Just simple yes or no.

[refurb]

Yes, have you?

It’s pretty clear high performing company don’t maintain it.

[lkdfjlkdfjlg]

I'm talking about the index.

No, you haven't.

Because if you did, you woulnd't be looking at an exponential and saying "but but but it reverts!!!!"

[refurb]

Please give me an example of a company that has consistently produced annual return higher than the SP500 average over 50+ years (hell, 20+ years).

The answer is there are none. Company tend to have stretches of very high returns, followed by flat or decreasing periods.

So what most people do - buy a stock that has already gone up a lot, are basically buying high and selling low.