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You often seen the claim that retail investors have missed out on upside by growth co's staying private longer. Here are S&P 500 annualized total returns by time period.
5 years: 10.6%
10 Years: 16.4
15 years: 8.5%
20 years: 5.9%
25 years: 9.5%
30 years: 10.1%
Since 1957: 10.1%
5 years: 10.6%
10 Years: 16.4
15 years: 8.5%
20 years: 5.9%
25 years: 9.5%
30 years: 10.1%
Since 1957: 10.1%
The idea that retail investors would somehow turbocharge their returns by buying and holding Amazon is completely at odds with what we know about investor behavior. In fact, they likely would've chased at the highs.
Overall market returns, absent the starting condition of the peak of the bubble, have on a long enough timeline, been fairly consistent. Had Uber gone public in 2013, I don't think retail investors would be any better off than if they dollar cost average into SPY.
