Vivek Patel

Professor Hendrik Bessembinder of Arizona State has spent years studying long-term stock returns, and his latest work has a hard lesson for anyone holding a large position in a single stock. Out of nearly 30,000 US stocks over the last 100 years, just 46 companies created half of all the wealth the market made that exceeded a 1-month Treasury bill. We turned the research into a short video, the first in a series we're calling The Evidence. The aggregate market has been an extraordinary wealth machine, with around $91 trillion created over the century. The median stock lost money over its lifetime, and nearly 60% of companies ended up worth less to shareholders than a 1-month Treasury bill. Across those 100 years, the wealth came from a very small group of companies. The top 3.7% of companies accounted for all of the net gains. The other 96.3%, taken together, simply matched what you'd have earned in 1-month T-bills. Only 27.6% of stocks beat the broad market at all. That small group has gotten even smaller, and the names keep changing. The number of companies behind half the market's wealth fell from 89 to 46 over the past decade. Nineteen of the last decade's thirty biggest winners weren't on the list before, with Nvidia, Tesla, and Eli Lilly among them. The takeaway for many isn’t that you should try to pick the winners. It's that identifying the full set of winners in advance is nearly impossible, and the market's returns come from owning the whole haystack rather than trying to find the right needles. Worth sitting with if a single stock has become a large part of your own net worth. Read our blog post and disclosures here: usecache.com/companion/besse…

Big day at Cache! Introducing Cache Long/Short. Less than two years ago, Cache launched an accessible exchange fund, bringing tax-deferred diversification to a broader audience. Today, we work with thousands of investors and manage over $1B in assets. And some of them encouraged us to do more: exchange funds are powerful, but not every situation calls for the same solution. Cache Long/Short is a new tool for your toolkit. It pairs a long extension with a short extension around your concentrated position that is designed  to: ✅ Create harvestable losses that can offset your gains ✅ Provide flexibility to diversify on your own timeline ✅ Manage upcoming or realized capital gains ✅ Rebalance highly appreciated positions tax-efficiently Unlike traditional tax-loss harvesting or direct indexing, this strategy aims to harvest losses in most market conditions, including rising markets. An active strategy demands seasoned hands. We’ve built this in partnership with Erkko Etula and the team at @BklnInvest, whose team manages the portfolio and brings decades of experience from Goldman Sachs, BlackRock, Citadel, and academic institutions. Key details: Schwab custody, annual management fees starting at 0.50%, $500K minimum. We're rolling out in batches. If you hold concentrated stock and want more flexibility in how you manage it, we're happy to discuss how it works. → Read about Cache Long/Short: usecache.com/product/long-sh… → Compare Strategies with our calculator: usecache.com/calculators/con… #wealthmanagement #personalfinance #longshort