Needles in a stock picker’s haystack

Even if you luck out and pick a stock that outperforms the market, there is no certainty of success, or even survival, in the future, according to research by Hank Bessembinder, professor of finance at the W. P. Carey School of Business.

Trying to find a winning stock is like looking for a needle in a haystack. Research by Professor of Finance Hank Bessembinder sheds light on why successful stock picking is difficult.

In this Huff Post article published on June 30, 2017:

One of the most important studies to appear in many years is a working paper by Arizona State University Professor Hendrik Bessembinder with the intriguing title “Do Stocks Outperform Treasury Bills?” This study reinforces the need for broad diversification and can be used as evidence by both supporters and skeptics of active management.