A sweeping new analysis of a century of US stock market history suggests the reality is far less democratic.

The study finds that almost every dollar of long-term shareholder wealth has been generated by a tiny elite of companies, while the overwhelming majority of listed firms have failed to outperform even the safest government securities.

The findings come from Hendrik Bessembinder, finance professor at Arizona State University’s WP Carey School of Business, whose updated research, ‘One Hundred Years in the US Stock Markets’, examines the performance of 29,754 common stocks listed between January 1926 and December 2025.

The headline number is startling. Collectively, US equities created almost USD 91 trillion in shareholder wealth over the century. Yet, more than 96% of listed companies contributed nothing to that total after accounting for returns available from one-month Treasury bills.

Instead, the entire market’s long-term wealth creation came from just 1,082 companies, representing only 3.72% of all firms that went public during the period.

Why average returns can be misleading
The research highlights one of investing’s biggest statistical traps: The difference between the average stock and the typical stock.

The US stock market as a whole produced an annualised return of roughly 10.1%, turning every dollar invested in 1926 into more than USD 15,000 by the end of 2025.

But individual stocks tell a completely different story.

Although the average buy-and-hold return across all companies appears spectacular because of a handful of extraordinary winners, the median stock actually delivered a negative lifetime return of 6.87%.

Less than half of all listed companies generated positive lifetime returns. When measured against Treasury bills, only about 41% outperformed cash. Against the broader market itself, only 27.6% beat the benchmark.

In other words, most listed companies either underperformed the market, or failed to reward investors for taking equity risk.

Why the winners dominate
The explanation lies in what statisticians call positive skewness.

Individual stocks have a natural floor. Investors cannot lose more than 100% of their capital.

But there is effectively no ceiling on gains.

A failed company can fall to zero. A successful one can rise thousands – or even millions – of per cent over decades.

That asymmetry means a handful of extraordinary performers pull the market’s average sharply upward while the majority of companies cluster around mediocre or disappointing outcomes.

It also explains why long-term market returns depend disproportionately on finding the rare businesses capable of compounding for decades.

Measuring wealth rather than percentages
Rather than looking only at percentage returns, Bessembinder measures what he calls Shareholder Wealth Creation (SWC).

The metric estimates the total dollar wealth generated for shareholders after accounting for dividends, share buybacks, equity issuance and other corporate actions, while comparing returns with the risk-free Treasury bill benchmark.

Unlike percentage gains, SWC reflects corporate size.

A modest gain in a trillion-dollar company creates vastly more wealth than a spectacular rally in a tiny micro-cap stock.

Viewed this way, the concentration becomes even more striking.

The bottom 17,197 companies, representing almost 60% of all firms, collectively destroyed USD 10.67 trillion of shareholder wealth relative to Treasury bills.

The next 10,802 companies generated almost exactly enough wealth to offset those losses.

That means the first 27,999 companies – more than 96% of the entire sample –collectively produced zero net wealth above cash.

Everything investors gained over the century came from the remaining 1,082 companies.

Technology has rewritten market history
The updated study also reveals how dramatically the balance of corporate power has shifted in less than a decade.

When Bessembinder first published his landmark work in 2018, Exxon Mobil ranked as history’s greatest creator of shareholder wealth, alongside industrial giants such as General Electric, IBM, Johnson & Johnson, General Motors, and Walmart.

Only Apple and Microsoft represented the modern technology sector in the top 10.

That hierarchy has now been transformed.

Apple has become the greatest wealth creator in the history of public markets, generating roughly USD 5.02 trillion in lifetime shareholder wealth – more than 5.5% of all wealth created across the US stock market over the past century.

Close behind is Nvidia, whose rise has been even more remarkable.

Listed only since 1999, Nvidia has generated around $4.58 trillion in shareholder wealth, despite having a much shorter public history than most companies near the top of the rankings.

Even more striking is the timing.

Almost all of Nvidia’s lifetime wealth – about USD 4.51 trillion – was created between 2017 and 2025, underscoring how rapidly today’s technology leaders can reshape the market.

Tesla provides another example.

Absent from the historical leaderboard in the earlier study, it now ranks among the top 10 wealth creators of all time after generating roughly USD 1.3 trillion in shareholder wealth.

The research also notes the extraordinary debut of SpaceX, whose public listing briefly propelled it into the top 30 wealth creators almost immediately, highlighting how quickly modern technology firms can alter decades of accumulated market history.

Market concentration is accelerating
Perhaps the study’s most important finding is that wealth concentration is becoming even more extreme.

In the original research covering 1926 to 2016, the five biggest wealth creators together accounted for the first 10% of all shareholder wealth.

In the updated study, Apple and Nvidia alone now account for that same threshold.

The top 10 companies generated 17.1% of all historical wealth in the earlier dataset.

Today, they account for 29%.

The top 30 companies’ share has risen from roughly 31% to nearly 44%.

Perhaps most remarkably, it once required 89 companies to generate half of all shareholder wealth created across US market history.

Now, just 46 companies account for half of the century’s total.

What it means for investors
The findings reinforce one of the strongest arguments in favour of broad-based index investing.

Since virtually all long-term wealth creation comes from a tiny fraction of companies, investors attempting to pick individual stocks face difficult odds.

Missing just a handful of exceptional performers can leave a portfolio significantly behind the broader market over time.

Owning an index fund ensures investors automatically hold tomorrow’s rare winners, even if nobody can identify them in advance.

Yet, the research also exposes a new challenge.

As market-capitalisation-weighted indices become increasingly dominated by technology giants, diversification itself becomes more complicated.

Buying the entire market no longer means owning an evenly balanced cross-section of the economy.

Instead, investors are making an increasingly concentrated allocation to a relatively small group of companies involved in semiconductors, artificial intelligence, cloud computing and digital platforms.

Whether artificial intelligence (AI) further entrenches these dominant firms – or creates the next generation of disruptive challengers – may determine whether the market’s concentration intensifies or begins to broaden over the decades ahead.

For now, the century-long evidence points to a sobering conclusion.

Stock markets have created enormous wealth. But history suggests that wealth has not been built by thousands of successful companies rising together. It has been driven by a remarkably small group of exceptional businesses whose compounding power has carried almost everyone else.

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“Diversification is very important, particularly in times of current uncertainty, to make tactical decisions that could help you beat the markets. We emphasise diversity. Based on that, a well-diversified portfolio will have somewhere between 10%-15% in gold. It is an alternative currency that is uncorrelated with other assets, because when you have a crisis, it tends to go up a lot and the others go down a lot,” Ray Dalio said while attending the launch of the Abu Dhabi Financial Week (ADFW) 2025.

In July 2025, he divested his final share in Bridgewater Associates, the hedge fund he started 50 years ago. The hedge fund veteran further stated that investors need to reevaluate what a neutral portfolio is and avoid becoming too heavy on traditional debt and asset classes, diversifying appropriately.

“The world is abundant in debt. When you are holding money, you are holding a debt instrument. And one man’s debt is another man’s asset. So, when you are holding it as an asset and a store of wealth, there is a problem,” Ray Dalio said.

Taking note of the rising geopolitical tensions, the hedge fund veteran remarked, “It’s important to know whose money you’re holding.”

He pointed out that countries like China, Japan, and Russia placed their reserves in US assets, mostly bonds, which ultimately didn’t work out well for them.

“For these reasons, people should consider what a neutral portfolio looks like and should not be so biased toward traditional debt and asset classes,” he added, while noting that even though American tariffs may bring in revenue for the world’s largest economy, the country is spending even more to service its debt.

Dalio compared the credit and capital markets to the human circulatory system, as he concluded, “Credit works like nutrients. If it’s directed into investments and activities that generate income, the system stays healthy. But when it’s not, debt servicing builds up like plaque, squeezing out other spending. That’s what we’re seeing happen now.”

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Diversification

Diversification is the practice of spreading investments across different asset classes, industries, and geographic regions to reduce the impact of any single investment’s poor performance on the overall portfolio. By diversifying, investors can mitigate risk without sacrificing potential returns. Asset allocation is a crucial component of diversification, as it determines the percentage of the portfolio allocated to different asset classes, such as stocks, bonds, real estate, and commodities.

Asset Allocation

Asset allocation is the process of deciding how to distribute investments among different asset classes based on factors like risk tolerance, investment horizon, and financial goals. Common asset classes include equities (stocks), fixed income (bonds), cash equivalents, and alternative investments (e.g., real estate, commodities). The optimal asset allocation varies for each investor and depends on their unique circumstances. A young investor with a long time horizon may have a higher allocation to stocks for growth potential, while a retiree may prioritise income generation and capital preservation with a higher allocation to bonds.

Risk Management

Managing risk is a fundamental aspect of portfolio management. While risk cannot be eliminated, it can be managed through various strategies. This includes diversification, as mentioned earlier, but also incorporating assets with low correlation to each other, using derivatives for hedging purposes, and implementing stop-loss orders to limit potential losses. Additionally, investors can adjust their portfolio’s risk profile by varying the allocation to different asset classes or by selecting investments with different risk-return profiles.

Active Management vs Passive Management

Portfolio managers can adopt either an active or passive approach to managing investments. Active management involves making frequent trades and attempting to outperform the market through research, analysis, and market timing. Passive management, on the other hand, aims to replicate the performance of a market index or specific asset class by investing in index funds or exchange-traded funds (ETFs). Each approach has its pros and cons, and the choice between active and passive management depends on factors like investment goals, time horizon, and risk tolerance.

Rebalancing

Over time, changes in asset prices and investment performance can cause a portfolio’s asset allocation to deviate from its target. Rebalancing involves periodically adjusting the portfolio back to its target allocation by buying or selling assets. This ensures that the portfolio remains aligned with the investor’s objectives and risk tolerance. Rebalancing can be done on a predetermined schedule (e.g., quarterly or annually) or triggered by specific thresholds (e.g., when an asset’s allocation deviates by a certain percentage).

Tax-Efficient Investing

Taxes can significantly impact investment returns, so it’s essential to consider tax implications when managing a portfolio. Tax-efficient investing involves strategies to minimise taxes on investment income and capital gains. This may include holding investments for the long term to qualify for lower capital gains tax rates, using tax-advantaged accounts like IRAs and 401(k)s, and strategically harvesting tax losses to offset capital gains. By implementing tax-efficient strategies, investors can enhance after-tax returns and compound wealth more effectively.

Dynamic Asset Allocation

Dynamic asset allocation involves actively adjusting the portfolio’s asset allocation in response to changing market conditions, economic trends, or valuation levels. This approach allows investors to capitalise on opportunities and mitigate risks as they arise. Dynamic asset allocation strategies may involve tilting the portfolio towards undervalued asset classes, defensive sectors, or alternative investments during periods of market uncertainty. However, it requires active monitoring and disciplined execution to be effective.

Portfolio management is a multifaceted discipline that requires careful planning, ongoing monitoring, and disciplined execution. By incorporating these seven strategies into your investment approach, you can build a robust portfolio that aligns with your financial goals, risk tolerance, and time horizon. Remember that there is no one-size-fits-all solution, so it’s essential to customise your portfolio management strategies to suit your circumstances and objectives.

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Highlighting the role of the Forum in supporting the goals of Vision 2035, Dr. Merza Hasan, executive director & dean of the Board of Executive Directors, World Bank Group said that what really underscores Vision 2035, a transformative initiative is that will drive the Kuwait economy from a single-resource economy to a diversified and dynamic economy is the importance it plays on human capital, and the role of the private sector in helping achieve Vision 2035.

At the recently-concluded Kuwait Investment Forum 2018 (KIF 2018), panelists discussed the need for fostering regional and global liberalisation, trade integration and cultural integration, and the leading role of the private sector in development, financing and investment, as well as the need to introduce legislation and supportive systems for sustainable development.

According to a report in CPI, the following details about the project were also announced:

• US$150-200bn in FDI for developing 20 per cent of the project
• Northern Gulf Gateway to add US$220bn to the GDP
• Development to create 300,000 to 400,000 knowledge-based jobs for world’s youth
• To attract three to five million visitors annually, opening new investment opportunities for the tourism, hospitality and leisure sectors
• Board of Trustees of the Harbour City in Northern Gulf Gateway to discuss with Chinese companies on 1 May, 2018

Moreover, The Boeing Company announced that it would open its permanent office in Kuwait. “The Middle East alone would need 63,000 pilots by 2035 as well as 69,000 technicians in addition to training to be offered for 100,000 crew. Such training partnerships are what we are looking at in Kuwait, so the young people here do not have to leave the country to be trained. We hope to add Kuwait to the list of our training centres as you have the right talent base and infrastructure here. We have about 50 employees now but watch the numbers grow,” said Timothy Keating, executive vice president of government operations, The Boeing Company.

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One of the most important developments of the century, Blockchain technology, has the potential to help the world’s largest oil producing region realize their vision of becoming a digitized nation.

In light of these developments, Bizwingz Production House is hosting Saudi Arabia’s very first blockchain conference, Decoding Blockchain KSA 2018. The conference offers unique networking opportunities for attendees to connect with industry leaders and innovators who are looking to explore the distributed ledger technology, while providing an ideal platform to understand the promising technology of Blockchain in the modern Middle East world.

Touted to be the next generation internet tech, blockchain has the potential to bring about a transformation in global financial systems.

Industry experts believe that the implementation of distributed ledgers and smart contracts could leapfrog the industry into the digital age. With a scaled blockchain, transactions will happen instantaneously, allowing anyone and everyone to track the transactions – reducing costs, stabilizing prices, and providing a level of transparency which was previously impossible.

Commenting on the future of Blockchain in Saudi, Mr. Mohammed AlSehli, conference chairman of Decoding Blockchain and founder of ArabianChain Technology, the first public blockchain in the Arabic world, said that, “I believe Saudi Arabia is on the right track to adopting blockchain technology and soon enough it will be leading the region in implementing and reaping its benefits. Blockchain naturally integrates with the 2030 vision as it allows for transparency, efficiency, income diversification and creation of new opportunities, take for example the millions of pilgrims who travel for “Haj and umrah” from all around the world every year or Project Neom as one of the most ambitious projects in the decade. The things we can offer are limitless starting from the tokenization of identities, medical records, visas, tickets, all the way to the tokenization of the Saudi Riyal to allow for faster, safer and cost efficient transactions. We are still at the very beginning of this journey but it’s the best time for innovators to take a leap and start shaping the view of tomorrow”.

With the launch of this conference, Decoding Blockchain KSA 2018 offers VCs, bankers, startups, government officials, payment companies and more the opportunity to not only actively exchange information but to also establish powerful strategic alliances. The conference will present a range of speaker sessions through which participants are given the opportunity to meet with innovators who offer business solutions that will help companies reduce costs and improve efficiency and integrity.

Come watch the best minds in the blockchain industry from across the pan-Saudi region, as well as the rest of the world, convene on a single platform on the 23^rd and 24^th of April, 2018.

International Finance is a media partner of Saudi Arabia’s first blockchain conference Blockchain KSA

Registrations are open – Ensure your participation for the ultimate knowledge-sharing conference at the earliest by logging on to http://www.decodingblockchain.com/

Feel free to reach out to the below mentioned contact for further discussion concerning your attendance at the conference.

Andrea Anthony, Marketing Head, BizWingz Production House
Email – andrea@bizwingzph.com
GSM: + 91-9739065066
Website: http://www.bizwingzph.com

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July 22, 2015 : How has the Sultanate been doing with efforts to diversify its oil-dependent economy? As part of ‘Oman Vision 2020’, there are concerted efforts to diversify the economy and reduce the dependency on oil. The specific 5-year plans carry the building blocks for achieving this vision through various national developmental projects like free-trade zones, building strong infrastructure and eco-system to support tourism growth, revamping the SME sector and encouraging new business ventures and investment opportunities across the country. Both government and private sector organisations are working together to achieve this vision, and their collaborative efforts are evident in the growing economy and vibrant Omani-owned businesses.

What changes did the bank make to its working style once the decision to diversify was taken?

We at BankDhofar believe in our role as a leading financial organisation and a major contributor to the diversification and development of the national economy. We place high importance on project finance and syndication loans in order to support different projects that take place nationwide. We introduced new products and services to the market to suit the needs and fulfil the requirements of different sectors. BankDhofar has also been a leader in terms of product innovation and creative solutions.

What products does the bank have for the SME sector and foreign investors?

For foreign investors, BankDhofar recently made the successful debut issue of Tier 1 Basel III Compliant Perpetual Bonds of $300 million in the international market. This is the first such issue from Oman. BankDhofar has also announced that it would issue senior debt up to $500 million in the international market.

As a key player in the Omani private sector and being a major contributor in driving the development and growth of the national economy, BankDhofar was one of the first banks to introduce SME related solutions, products and services. Despite the fact that the “SME” term is relatively new to the Omani market, BankDhofar has been working for years to nurture and promote good business ideas generated in this sector, providing financial solutions and strategic guidance to entrepreneurs under its Corporate Banking umbrella. In the past few years, we adopted several strategic initiatives to further cement our stronghold in the market and cater to all businesses from large corporates to SMEs, providing a full array of banking products, quick turn-around time, improved cash management & competitive service charges. We at BankDhofar are very proud to be one of the leaders among the private sector organisations in terms of providing SME related exclusive banking products and services, advisory and mentorship, and now the flagship Entrepreneur Account that is available in all our branches across the Sultanate. The Entrepreneur Account is designed to provide the best banking experience that is tailor-made to suit the diverse needs and requirements of SME customers and ambitious entrepreneurs in all business areas. In recognition of our efforts in this sector, BankDhofar has been named ‘Best SME Bank Oman 2015’ by Global Banking & Finance Review, and has been awarded the ‘SME Bank of the Year – Oman’ award at the ABF Retail Banking Awards 2015.

Does the bank have a facility to help foreign investors understand local rules and regulations?

BankDhofar responds to foreign investors queries on local rules and regulations as they arise and we also make sure that we implement and follow all rules and regulations as stipulated by the Central Bank of Oman (CBO). I would like to take this opportunity to invite interested foreign investors to consider doing business in Oman, and we are very delighted to facilitate that and support all initiatives that would positively contribute to the growth and development of the Omani economy, as well as pave the way for foreign investment to set up and grow in all sectors across the country.

Why should new investors work with BankDhofar?

Oman offers a good investment opportunity for new foreign investors as part of geographical diversification of their investment portfolio. As for BankDhofar in particular, the bank enjoys BBB+ rating by Fitch and A3 rating by Moody’s supported by strong financial stability, continued successful performance with good asset quality. When you look at the numbers, you can see the how the performance of BankDhofar is constantly improving. Our net profit for the year 2014 was OMR 40.45 million, showing an increase of 14.23% year-on-year. Our financial results for H1 this year were impressive and we witnessed a sustained annual growth of 10.35% (initial un-audited financial results) for the 6–month period ended 30th June 2015. Our data also show a remarkable growth in all areas in both Islamic and the conventional banking areas. We have seen a steady growth in all business areas, including net loans, advances and financing to customers, customer deposits, net interest and financing income, as well as non-interest and non-financing income such as fees and commission, foreign exchange profit, investment and other income.

Our vision is to be the best bank in the region in terms of customers’ experience. We understand our customers’ needs and requirements, and we set the standards for the best customer experience within the banking industry in the Sultanate through creative solutions and innovation. We apply cutting-edge technology and keep introducing state-of-the-art banking solutions, and we oversee current market trends and expected developments in the future, and we use that to stay ahead in all the services and products we provide.

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