This article was first uploaded for Best Anchor Stocks subscribers. Best Anchor Stocks is an investment research service focused on high-quality, resilient businesses with significant growth runways ahead. The portfolio is currently made up of 11 companies, distributed as follows across industries:
The 4% rule should be interpreted carefully as it relates to absolute amounts rather than percentage changes. If Apple doubles, it has a significant impact on the total value of the stock market, but it is 'only' a 100% return. Many mid-cap companies can increase tenfold without much impact on the overall market. The study also looks at how many stocks beat the t-bill percentage-wise, and that is much higher than 4%.
In the performance comparison at the beginning, it's not clear for me which one is for Anchor. Can you add a legend to the graph?